The answer to this question is yes, if the value of the farm exceeds the amount of the estate tax exclusion. At the present time, the federal estate tax credit or exclusion is $11.18 million. This is the amount that can be transferred before the estate tax would kick in. Here in New York where we practice law, there is a state estate tax in place as well, and at the present time, the exclusion is considerably lower than the federal exclusion.
Fortunately, there are estate tax efficiency strategies that can be utilized to mitigate your exposure if you own a great deal of valuable land.