New boots from Ray Harshman of Edmond

This morning I came into the office and found a package waiting on me. In the package I found this new pair of boots from a friend from Edmond, Oklahoma, Ray Harshman.

This is now the third pair he has made for me and I cherish each pair because they are the best fitting shoes I have ever owned. They are boots that I will probably never wear out and will pass down to the next generation, someday.
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That brings up a point that I like to make with my clients: estate planning is not just about money, real estate, or financial accounts, it is also about passing on the legacy and stories you have accumulated over your lifetime. These boots represent a friendship between Ray and myself and the story of these boots are worth more than the liquidation value in an estate sale would be.

What stories would you like to tell your children; and do you have the planning in place so those stories will last into future generations? Thank you, Ray, for the boots and the friendship.

The Oklahoma legislature took a great step forward this past session to offer more liability planning flexibility for Oklahoma’s farmers and ranchers. With the passage of HB 3110, the State of Oklahoma now permits ad valorem tax exemption for livestock owned by closely held entities, but only if the entities are owned only by members of the same family.

First, a little background: The Oklahoma State Constitution provides for the exemption from ad valorem taxation of household goods and livestock employed in the support of a family. Okla. Const. Art. X, Sec. 6(b). A previous Attorney General issued an opinion on this provision that stated “in support of a family” was limited to farmers and/or ranchers that owned the livestock in their individual name or as sole proprietorships. If livestock were owned through a limited liability company, a family partnership or a corporation, the livestock should have been subject to the county’s ad valorem taxes.

The conflict which arises here is that all of the forms of ownership that allowed for exemption from property taxes would subject the farmer or rancher to unlimited liability in the event a lawsuit arose. For example, if a fence went down and cattle were out at night and caused a significant automobile accident, the rancher and his insurance would have to pay all judgments that arose from that accident; even to the point of having to sell land, if the judgment far exceeded liability coverage. Under the previous Attorney General ruling, there was no way to limit the liability to just the cattle unless you wanted to pay ad valorem taxes on the all cattle.
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The new law, which can be found at Title 68 Okla. Stat. §2807.1, approves the use of family limited liability entities, trusts, and estates. The law interprets the clause (in the state Constitution) “in support of the family” to include any entity where a family unit, consisting of common descendents and surviving spouses, (e.g. father/son, siblings, cousins, or widows) to be exempt from ad valorem taxation on livestock if no one outside of the family owns interests. The new law would allow a rancher to separate points of liability, meaning he could own his land in one entity and his cattle in a different entity, without increasing his property tax burden. Using the same scenario of cattle out at night, as above, with proper planning the rancher above might still lose his investment in his cattle, but his land would not have to be sold to cover a judgment over his liability coverage.

The new law goes into effect on January 1, 2013 and would apply to personal property taxes from then forward.

It was a pretty good year for us on Howard Farms. We only had one major breakdown (Ryan’s combine) and about three minor ones. Our wheat averaged around the mid-30s in bushels per acre and we are getting a decent price. They propose an easy solution to a difficult and embarrassing situation which he would not like. viagra samples To cheapest cialis uk prevent sperm release while sleeping, you are sexually normal. The oral commander levitra jelly is clinically manufactured in clean room facilities. It is an excellent treating alternative for men who are suffering from ED issues and those who wish to enjoy the http://davidfraymusic.com/events/peabody-auditorium-florida/ canada viagra prescription. We finished up yesterday around 2:00 p.m. and took the rest of the day to enjoy Memorial Day.

I would speculate that harvest is about 90% complete in Altus and the surrounding area of southwest Oklahoma.

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