The 1997 Tax Act also included estate tax relief for many family-owned small businesses, and farming, ranching, and forestry activities that are run as family businesses may be able to qualify for relief under these provisions. The combined effect of the new estate tax rules and the family business relief provision is that with proper planning up to $1,300,000 in value can be passed on with no estate tax from an individual's estate when a qualifying business is involved and when the fairly complex and technical provisions of this new family business benefit are met. The new Section 2031(c) provisions can be added on top of this; in other words, with proper planning, with a qualifying land-based business, and once all of the new relief provisions are fully phased in, it appears that up to $1,800,000 in value can be excluded from an individual's estate, that is, $1,300,000 from using the general estate tax provisions and the family business provisions and $500,000 from new Section 2031(c).

Although it certainly appears that both spouses can take advantage of the Section 2031(c) exclusion (potentially doubling the estate tax benefit), it is not clear at this point the extent to which both spouses can take advantage of all of these benefits. However, at an absolute minimum and with proper planning, owners of important land can save many more estate tax dollars than was possible under the old law. The key words in the previous sentences are "with proper planning." Once again, planning during lifetime to qualify for these benefits is critical.