Avoid Costly Mistakes: The Importance of a Solid Estate Plan
Your Land, Your Legacy- Protect It Now!
Let’s be real—no one gets out of this life alive. In my line of work as a land real estate agent, I have seen too many people avoid estate planning, leaving their families to deal with chaos, legal battles, and massive tax bills. We can all think of a few horror stories of a family having to pick up the pieces after a death in the family to figure out who gets the farm.
I’ve seen firsthand how a lack of planning can tear close-knit families apart and force them to sell off land just to cover estate taxes—a federal rate of 40%. If you don’t take action now, the government and the courts will decide what happens to everything you’ve built. Have the hard conversations. Make a plan. Engaging in these essential conversations before a death ensures that your legacy is preserved and your loved ones are protected.
Federal Estate Taxes Can Cost You
While Oklahoma does not impose a state estate tax, the federal estate tax remains a significant consideration. As of 2025, the federal estate tax exemption is $13.99 million per individual, allowing estates valued below this threshold to pass to heirs tax-free. However, this exemption is scheduled to revert to approximately $7 million in 2026 unless new legislation is enacted. Estates exceeding the exemption amount are taxed at a 40% rate. That means that if you are leaving your beneficiaries a $23.99 million estate, the estate will owe $4,000,000 in federal estate tax!
Many landowners mistakenly believe that a simple will suffices for estate planning. However, without comprehensive strategies, estates can become entangled in probate—a legal process that can be lengthy and costly. This not only delays the distribution of assets but can also lead to disputes among heirs. Engaging in thorough estate planning, including the establishment of trusts, can help avoid probate and ensure assets are distributed according to your wishes.
Steps For Successful Estate Planning
Avoiding discussions about estate planning can lead to unintended consequences. Without clear directives, families face disagreements over asset distribution, leading to legal battles and strained relationships. Here are the key steps to take now to prevent stress and complications for your loved ones later:
- Initiate the Conversation: Discuss your wishes openly with family members to ensure everyone understands your intentions.
- Consult Trusted Advisors: Engage with experienced estate planning attorneys and financial advisors who can provide guidance tailored to your specific situation. Make sure that you can trust them!
- Establish Comprehensive Documents: Create wills, trusts, and advance directives that clearly outline your wishes, helping to prevent potential disputes.
- Regularly Review and Update Plans: Life circumstances and laws change; ensure your estate plan reflects your current intentions and complies with the latest regulations.
Estate planning is not merely a legal formality but a vital process to protect your assets and ensure your family’s harmony after your passing. By confronting these challenging conversations now and working with trusted professionals, you can safeguard your legacy and provide peace of mind for your loved ones.
If you’ve got more questions about making an estate plan, get in touch with me at DillonS@NationalLand.com or reach out to your local Land Professional today!