Advice on Estate Planning & Timber Income Tax  

As rural properties are developed and land values skyrocket, owners of rural lands are often 

caught unaware of the estate tax situation they may be thrust into. Many families lose their 

farms and forest property unnecessarily due to lack of planning. High land value can quickly 

elevate one’s total estate over the threshold for the “lifetime exclusion” which is $1,000,000 

for 2003. Estate taxes start at 37% so keeping below this threshold may be very important. 

It is not at all uncommon for rural lands to be sold and family lands lost to development, 

in order to pay estate taxes. Basic estate planning can reduce or eliminate this risk. 

TLC can work with you and your attorney, tax accountant, or estate planner, to help  

with estate issues that relate to forestlands. Conservation easements may play an 

important role in estate planning and serve to significantly reduce or eliminate estate taxes, 

while allowing you to enjoy, sell, or pass the land on to your heirs.