As a farm owner, it's important to stay up-to-date on trust and estate procedures to ensure that you pay the least amount in estate taxes and protect your assets for future generations. One way to do this is through the use of trusts, which can be a valuable tool in estate planning. Trusts can help you manage your assets, reduce taxes, and provide for your loved ones in the event of your death or incapacitation.

One option to consider is trust tourism, which involves setting up a trust in a state with more favorable trust laws. For example, Tennessee and South Dakota have become popular destinations for trust tourism due to their favorable trust laws and lack of state income tax.

In Tennessee, the Uniform Prudent Investor Act (UPIA) provides broad discretion to trustees to manage and invest trust assets. This can be beneficial for farm owners, as it allows trustees to make investment decisions that are in the best interests of the trust and its beneficiaries. Additionally, Tennessee does not have a state income tax, which can further reduce the tax burden on trusts.

South Dakota also has favorable trust laws, including the South Dakota Trust Code, which provides for a wide range of trust powers and protections for trustees. Like Tennessee, South Dakota does not have a state income tax, which can make it a tax-advantaged location for trusts.

While trust tourism can offer benefits in terms of tax savings and asset protection, it's important to carefully consider all of your options and seek the advice of a qualified attorney before making any decisions. Trusts can be complex legal instruments, and it's important to fully understand the potential risks and benefits before setting one up.

In addition to trusts, another option to consider is keeping land in trust for future generations. This can be a way to ensure that your farm remains in the family and is protected from outside interests. There are several types of trusts that can be used to hold land, including charitable trusts, conservation trusts, and family trusts.

By carefully planning and utilizing trusts and other estate planning tools, you can help ensure that your farm remains in the family and is protected for future generations. It's important to work with a qualified attorney to determine the best course of action for your specific situation.