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.