THE PENNSYLVANIA FORESTRY ASSOCIATION
56 E. Main Street; Mechanicsburg, PA 17055; 1-800-835-8065

N E W S   R E L E A S E

Date: August 1, 2003
For immediate release

Contact: Lloyd Casey, PFA President
Phone: (610) 436-9424
E-mail: Lcasey@attglobal.net

ESTATE PLAN KEY TO AVOIDING AN INHERITANCE NIGHTMARE

Rising land values, combined with state and federal estate taxes, can prevent inheritors from carrying on the traditions of their benefactors. Without a well-designed estate plan, landowners might leave their heirs with little more than an overwhelming tax burden. Lloyd Casey, president of the Pennsylvania Forestry Association (PFA) says, "It's very important for woodland owners to keep track of the value of their estate."

Federal inheritance taxes apply only if the taxable estate is valued at more than $1 million in 2002. However, Pennsylvania inheritance taxes apply for estates over $3000. Landowners should not assume that their land's value is low. Today's fair market value on land improvements and timber can be surprising. "Some landowners never find out that they're millionaires, but their heirs find out. By then, the only way to pay the tax bill could be to liquidate the assets," says Casey. "The most important thing is to know the value of your assets. A reevaluation of your forest every five years is a good way to keep up with its value. Once you start pushing one million dollars in evaluation, think about preventing shrinkage for the next generation."

Planning for the next generation gives landowners the assurance that their land will always remain as they intended. Practicing forest stewardship will not be enough to protect the health and longevity of the forest if the property is lost.
There are several options for ensuring that the estate transfers smoothly, painlessly, and intact. For example, landowners can gift the land a little at a time to their heirs, arrange for all or part of it to be protected through a conservation easement, or give it to a charitable organization. A combination of these options might be the best way for landowners to meet their goals.

PFA is now distributing the free publication: "Forest Stewardship #13: Estate Planning," prepared by Penn State's School of Forest Resources Extension. To request the free publication, contact PFA: 1-800-835-8065 (toll-free); e-mail, thepfa@juno.com; 56 East Main Street, Mechanicsburg, PA 17055. See also Estate Planning Opportunities for Private Forest Landowners by Michael G. Jacobson and John C. Becker at https://www.timbertax.org. The Pennsylvania Forestry Association is a broad-based citizen group that provides sound forest management advice to its members and promotes the wise stewardship of the Commonwealth's forest resources.

# # #