In Focus: Five Questions With Conley Thornhill
October 24, 2012 
1. What is one of the biggest issues facing agricultural families today?
Thornhill: There is so much uncertainty in today’s world in regard to income taxes and estate taxes that it makes proper planning a challenging proposition. Many folks have put off the proper planning necessary to make sure family farms and ranches stay in the family without paying unnecessary taxes and legal fees. It is a confusing time for many people.
2. What is a good way to begin the process?
Thornhill: Sit down with a qualified financial planner and have a conversation. Talk about your hopes and dreams and how you see the next generation carrying on your legacy. There may be other members of the family not involved in the business you want to plan for. A confidential discussion over a cup of coffee or glass of orange juice is a great start to developing a solid plan.
3. What is going on with the current estate tax laws?
Thornhill: Current laws allow each person to pass on $5.12 million in assets (or $10.24 million between a husband and wife) without tax. If nothing changes before Jan. 1, 2013, this amount drops to $1 million (or $2 million between husband and wife). In other words, the estate tax rate goes from a maximum of 35% to 55%. That is a huge difference, so the time to plan is now.
4. What estate planning techniques do you recommend?
Thornhill: Everyone has a different situation and there is a no “one-size-fits-all” solution. Multigenerational trusts, family limited partnerships, and spousal lifetime access trusts are a few of the tools I have used for agricultural families. Multigenerational trusts allow you to protect assets against federal transfer tax for generations to come.
5. How will the recent election impact taxes?
Thornhill: It doesn’t matter who won the election, because tax reform is a goal of both parties. Now is the time to review your wealth transfer goals and estate plan in light of the changing landscape. It is critical to engage with your advisory team earlier rather than later to allow enough time to complete the work before year’s end. Don’t let an opportunity right for you and your family slip through your fingers.