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officials continue to argue about the future of taxes (both estate and income) making sure there is sufficient liquidity is critical when it comes to preserving one’s intent.
For example, if Mom and Dad want to leave the horses and farm to the kids to run as long as the horses are alive, are there enough other assets available in the estate so the farm does not have to be broken up to satisfy an obligation, like an estate tax? If the intent is to keep things together, then having sufficient other assets to address the debt is vital to making the plan work.
The second mathematical equation to con- sider is how much do I send with the horses? Of course depending on the type, age, size and number of horses, the amount will vary; how- ever, doing the math first is critical in making sure the horse(s) care is addressed.
For example, if it requires $1,000 a month for a horse’s care, the amount needed in trust may need to be $144,805. (Present Value of $1,000/month for 15 years at a 3% inflation rate) Also, don’t forget to address prop-
erty taxes and licenses.
The creation and funding for an equine trust is not something to leave to the last moment. Not only does it require a strong team of professionals, it requires action in
both getting the documents drafted and making sure the math works. When it comes to planning, being proactive allows for all possible planning techniques to be considered and the ability to make a selection that works on multiple levels for you, your family and your four legged family members.
1 www.aspca.org/pet-care/pet-care-tips/pet-trusts-laws.aspx)
DISCLAIMER: The above information and content are general in nature for informational purposes only and do not constitute financial advice or investment recommen- dations. Speedhorse Magazine makes no endorsements and bears no liability for your use of the information provided in this column. Always consult a suitably quali- fied financial professional and/or tax professional on any specific problem, issue or investment opportunity.
$99!
Don’t miss out on theses great conversation pieces!

The 2002 edition of the Prominent Sires of Running Quarter Horses Poster is available for only $19.99.
Also available but selling fast is the Special Effort Commemorative All American Poster. Non-autographed copies are discounted 50% to only $19!
SPEEDHORSE, August 3, 2012 83
FINANCIAL FORUM