A farm’s overall success in the short and long term has a number of factors, chief among them being the blood, sweat, and tears of the men and women who operate them. Many farms are in the middle of or preparing for a transition to the next generation. The legal structure of the farm (proprietorship, […] Read more
Tag Archives Succession Planning column
Unanimous shareholders’ agreements help succession
An often-overlooked component of a business owner’s estate plan is a unanimous shareholders’ agreement. A USA can be a useful tool for estate planning purposes, especially in the context of the succession of a family farming corporation. Generally, a USA is an agreement that governs the conduct of a corporation and its shareholders. USAs can […] Read more
Capital gains exemption not as tax-free as you may think
Whether you are a tax expert or not, if you farm and personally own farmland or shares in a farming corporation, you are likely to have come across three words that sound like pure gold — capital gains exemption. However, there are three other words that almost always tag along where the CGE goes — […] Read more
Transferring farmland into joint names comes with risks
When planning for the future, it is common for families to receive well-intentioned advice that parents should transfer their farmland into joint names with their children before they die so that their estates can avoid probate fees. Probate fees are the fees that an estate pays to the court in order to receive letters probate […] Read more
Transferring the farm to the kids is tax free – or not
Many farmers know there are “tax rollover” rules in the Income Tax Act that allow their farmland and shares in their farming corporation to be transferred to their children without tax. However, these rules have many conditions that can catch people by surprise. First, some background. Property that can create a capital gain or loss […] Read more
Farm estate planning: where there’s a will, there’s a way
Putting together a plan for what will happen to your assets after your death can feel like an overwhelming task. There are so many variables to consider: How will my debts be paid? How do I make sure that all my kids are treated fairly? How do I ensure that my farmland will remain in […] Read more
Understanding family property law is key to succession
Farm succession planning is complex. The transition of the family farm to the next generation raises several questions, including how you ensure the farm remains in the family. The legacy within a family farm may span several generations. But what happens if along the way a separation or divorce occurs and the family farm is […] Read more
