WEST LAFAYETTE, Ind. — Some farm families wait until it’s too late to find out about estate planning and end up paying more than they should in taxes, said Gerry Harrison, agricultural economist for Purdue University.

Harrison, a member of the Indiana Bar, said his biggest surprise in 30 years of running an estate planning seminar is that farmers often are not aware of a special provision in the federal estate tax, a provision that would reduce their farmland valuation by half. This provision has been available since 1977, he said.

“People find out after the fact. It happens, and I feel bad ... The wife of a farmer wanted to know whether she could get back the $300,000 she owed in federal estate taxes. It would be difficult, after the fact,” Harrison said.

The federal estate tax affects farms and family businesses worth more than $2 million, Harrison said. The inheritance tax in Indiana affects more farmers, but if an estate is well structured, even that tax can be managed, he said.

One option is to distribute assets during one’s lifetime, Harrison said.

“In Indiana, there is no gift tax up to $1 million,” he said.

These issues, along with probate, wills, healthcare directives, income and gift taxes, business organization and living trusts, will be discussed in detail at Harrison’s seminars, located around the state. Preregistration and a nominal fee of $20 are required.

Spouses are charged only $10. Lunch for daytime seminars is an additional $5. The schedule is:

•Wednesday, Dec. 6 and Thursday, Dec. 7 in Valparaiso, Ind., at the Porter County Purdue Extension Office

•Thursday, Dec. 7 in New Carlisle, Ind., at the public library, sponsored by Purdue Extension in La Porte and St. Joseph counties

•Tuesday, Dec. 12 and Wednesday, Dec. 13 in Aurora, Ind., at the extension office

•Wednesday, Dec. 13 in Greenfield, Ind., at the extension office

While estate planning seminars abound, many of them have a package to sell, which gives them a commercial motive, Harrison said. Sometimes a farmer might buy a bigger package than he needs or miss the most essential component.

“I feel good about my seminars because I can be unbiased. I am paid for educational work, not for selling a product,” he said.

Continuing education credits are available for accountants, insurance producers and lawyers who are licensed in Indiana. The cost for these professionals is $60-$65.

Registration forms are available through the Purdue Extension offices in the host counties or by contacting Harrison’s office at Purdue toll free at 888-398-4636, ext. 44216, or 765-494-4216 or by e-mail at harrisog@purdue.edu

This farm news was published in the Nov. 22, 2006 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.