Estate Taxes










Family businesses spend a significant amount of timed (median of five years) and money (0.38% of their death) on death planning..

Impact of Estate Taxes on Farmers
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Introduction

Family-owned businesses represent a productive and stabilizing force in the U.S. The "family" component often brings many assets and competitive advantages to the family business. A major benefit family brings to the business is long-term commitment. They focus not on the next quarter's earnings but on meeting long-term family, community and business goals. To many of these families, the business represents the overwhelming majority of family assets and the primary means of family employment and income. Seventy-eight percent have more than 75% of their net worth in the business.1 Often, the identity of the business becomes inseparable from that of the individuals and the family as a whole.

Family businesses are extremely important to those who own and run them, and they are critical to our nation and economy. Family firms carry an enormous share of the load in terms of employment, wages, and job creation. Of the more than 22 million businesses in the U.S., between 90 and 95% (about 20 million) are family businesses.2 These include firms where the family influences the strategic direction of the firm and there is at least some desire to keep the business in the family. While many of these family firms are small, this number also represents nearly 200 of the Fortune 500. 3

Family businesses contribute dramatically to the U.S. economy:

  • Family businesses generate one-half (49%) of U.S. gross domestic product.
  • Family businesses employ 6 of every 10 U.S. workers (59%) - around 77 million people.
  • Family businesses created nearly 8 of every 10 new jobs (78%) from 1977 to 1990.

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