Thanks for taking the time to find out about our connection to Davis, California. Davis is the most populous city in Yolo County, California located in the Sacramento–Arden-Arcade–Roseville Metropolitan area. Davis is noted for its desirable quality of life, its small town atmosphere, and its abundance of nature.
The Davis community combines safe neighborhoods, retail and service establishments, and cultural amenities for everyone to enjoy. Nature is a priority, with Davis’ 31 parks and 453 acres of improved developed landscape owned and maintained by the city. The Davis Farmers Market is held all year long on Wednesdays and Saturdays in Central Park. In addition to fresh fruits and vegetables sold by local farmers, you may also find gourmet foods, live entertainment, specialty products, and arts and crafts. Davis is also known for its more than 50 miles of bicycle paths and more bicycles per capita than any other city in the country.
If you haven’t heard of it, Davis’ Toad Tunnel is a wildlife crossing constructed by animal lovers in 1995 as an overpass to protect the community’s toads. Cars commuting from South Davis to North Davis were known for striking numerous toads as they hopped from one side of a dirt lot) to the reservoir. It was ultimately decided that a toad tunnel be built, which runs beneath the Pole Line Road overpass. This venture only highlights the city’s commitment to nature and community.
The Davis Farmers Market, held every Wednesday evening and Saturday morning, offers a wide range of fruits and vegetables, baked goods, dairy and meat products. Some of the products come from certified organic farms. The Davis Farmers Market won first place in 2009 and second place in 2010 in the America’s Favorite Farmers Market.
We are here to serve our neighbors in Davis
A major concern for families owning farms is protecting those investments so the farm can successfully transition from one generation to the next. Believe it or not, nearly 70 percent of family businesses are unable to survive the generational transfer. Usually that is because of estate taxes and probate fees. Protecting your family farm is very important. Estate planning, along with business succession planning, the most efficient way to accomplish that.
Many farms are considered “land rich” but “cash poor.” This means that farms typically have all of their cash tied up in buildings, equipment, livestock and the land itself. However, they often have very little, if any, cash on hand. The farm’s net worth may be substantial. With estate taxes being determined by the current market value of the farm’s assets, your heirs may be required to come up with the cash required to pay estate taxes if they have no cash in hand. As the value of the farm is tied up in tangible assets, your family may be required to sell resources, or the farm itself, in order to pay the taxes and settle all other estate costs when you die. With an appropriate estate plan these types of issues can be addressed.
Estate planning for family-owned farms
There are basically two common estate planning challenges for family-owned farms: (1) how to preserve the farming business so it can be successfully transferred to the next generation while remaining intact, and (2) how to distribute the interests in the farm among the heirs fairly. Meeting these two challenges means you must plan ahead for estate taxes and employing the right tactics to provide maximum control over when, how and to whom ownership of the farm will be transferred.
A succession plan requires designating the family successors as managers and owners of the farm. It also requires determining whether any additional support for the successors will be required from other family members. The specific roles of other family members, whether they are active with the farm or not, need to also be identified.
An efficient succession plan is necessary for a family farm to transfer completely to the next generation. The plan must provide financial independence for the owners when they retire, in addition to keeping the farm in a position for continued growth and success. The succession planning process requires creating goals and objectives for the farm, establishing an appropriate decision-making process, and estate planning for the owners as well. If you have questions regarding trusts, or any other estate planning needs, contact the Northern California Center for Estate Planning and Elder Law for a consultation, either online or by calling us at (916) 437-3500.