Delaware is an attractive state for retirement due to its favorable tax and estate planning laws. If you own a farm in the state, you also can benefit from these perks.
Since your farm is a business, you may wish to preserve it. Your biggest mistake is not having a plan in place right now.
No control without a plan
If you fail to create an estate plan that covers your farm, it could end up in the wrong hands. It is also possible the state may force a sale. You have zero control over what happens, and your family may have limited control, especially if you have debt.
It must be the right plan
Even with a plan, your heirs could run into trouble. You need to discuss the situation with everyone right now. Find out who wants to continue farming and who does not. Do not leave the farm to anyone who does not wish to continue the business. This could lead to fighting and the breakup of the farm.
Instead, focus on leaving it to those who will carry on operations. Leave those who do not want to farm some other assets. Explain to everyone why you are making these decisions so there is no problem after your death.
Also, make sure to look at the special laws pertaining to farmland, which can help your heirs save money on taxes. You may wish to also leave this information in your estate plan to help them.
Making sure you look ahead to what will happen when you die is the only way to protect your farming business.