1400.206—Estates.
(a)
For 2 program years after the program year in which a person dies, the person's estate will be considered to be actively engaged in farming if:
(2)
The personal representative or heirs of the estate collectively make a significant contribution of either:
(3)
The estate has a share of the profits or losses from the farming operation commensurate with the legal entity's contributions to the operation;
(4)
The estate makes contributions to the farming operation that are at risk for a loss, with the level of risk being commensurate with the legal entity's claimed share of the farming operation; and
(5)
The representative of the estate has provided a tax identification number for the estate and a copy of a court order, will, or other legal document that identifies the heir(s) and tax identification number(s) of the heir(s).
(b)
For a farming operation conducted by an estate in which the capital, land, or equipment is contributed by the estate, such capital, land, or equipment:
(1)
To meet the requirements of paragraph (a) of this section, must be contributed directly by the estate and must not be acquired as a loan made to, guaranteed, co-signed, or secured by:
(i)
Any person, legal entity, or joint operation that has an interest in such farming operation, including the estate's heirs;
(ii)
Such joint operation by any person, legal entity, or other joint operation that has an interest in such farming operation; or
(iii)
Any person, legal entity, or joint operation in whose farming operation such an estate has an interest; and
(2)
To meet the requirements of paragraphs (c)(3)and (a)(4) of this section, and if land, capital or equipment is acquired as a result of a loan made to, guaranteed, co-signed, or secured by the persons, legal entities, or joint operations as defined, the loan must:
(c)
After the period set forth in paragraph (a) of this section, the deceased person's estate will not be considered to be actively engaged in farming unless, on a case by case basis, the Deputy Administrator determines, for the purpose of obtaining program payments, that the estate has not been settled.