Eastern Iowa Farmer Fall 2017

the next generation
which was conducted by Peoples
Company, went to several organizations,
including Central Community
Education Foundation for the Helen
Jeanne Helble Endowment Fund.
It was a great way to pass the value
of land on to education, said Doug Yegge,
the broker with Peoples Company’s
DeWitt office, which ran the auction.
“It was a terrific way to sell it,” he
said. “There were a number of people
who wanted it. It was a tribute to the
way Donna lived her life.”
“This is one creative way to continue
a legacy,” Hill agreed.
Whatever the plan for a farmer’s
legacy, it pays to think about how to
structure future transactions to get the
most financial benefit, experts say.
Land is generally the center of
value for farm families, said Steve
Powell, president and chief executive
of Powell Financial Group and
Dean Engel, executive vice president and
senior trust officer for Maquoketa State Bank/
Ohnward Financial Advisor Services
Maquoketa Financial Group. The goal
often is to preserve that value while
addressing tax implications.
Minimizing the cost of transfer is
always a priority, said Powell, who
has been in the business more than 44
years. That means looking at different
options.
The tax rate currently is 40 percent
for estates in excess of $5.49 million –
a big factor in structuring a succession
plan. Among the tools people have to
work with are cash, personal assets,
and insurance policies, Powell said.
For example, he has worked with
a family where the on-farm son is
the beneficiary of a life insurance
policy that would allow him to buy
the farm from his sister, who is an
off-farm heir. It turned out to be the
most cost-efficient way for everyone
involved.
Besides urging people to seek out
the advice of professionals, including
lawyers, accountants, bankers and
financial advisers, Powell also stresses
that people should keep good books
and records. It saves a lot of time
when developing a plan.
Ted and Sharon Witt,
Owners
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fall 2017 | Eastern Iowa Farmer 91