Effect of the federal estate tax on rural landholdings in the USA.

Abstract

AbstractA study was conducted to quantify the effect of the federal estate tax landholdings in the USA thru a mailed questionnaires to forest owners and other rural landowners. Results showed that 9% of forest owner respondents and 14% of other rural landowners were involved in the transfer of an estate. Among the respondents who had been involved in the transfer of an estate, 83% of those in the forest owner sample and 94% of those in the other rural landowner samples were family members of the decedent. These results differ statistically with respondents for forest estates more likely to be a friend, business associate or professional who served the decedent and those for other rural estates more likely to be a family member. Location of the land, form of ownership in which it was held, value of the gross taxable estate, and total area - did not differ between the groups. They differ however on the use of the land with forest owners more likely to own substantial forestland and other rural landowners more likely to own substantial crop- and grazing land. For both forest owners and other rural landowners, approximately 28% of the estates qualified for and 22% elected to use 'special use' valuation. Approximately 33% of the estates in both groups paid federal estate tax.