More than 25 per cent of all farming operations are incorporated, according to the 2021 Agriculture Census, and of those corporations, 87 per cent are labelled as family corporations. Statistics Canada defines a family corporation as an incorporated business operation in which an individual or members of a family own the majority of the corporation’s […] Read more
Tag Archives Succession Planning column — page 2
Feds present time sensitive challenges, new opportunities
When the 2024 federal budget was released in April, there were several notable proposed tax changes that will have direct implications on most Canadians. The first change relates to the capital gains inclusion rate. Since 2001, it has been 50 per cent, which means 50 per cent of a capital gain is tax free and […] Read more
Where there’s no will, there’s still a way through intestacy
Everyone has been told it is important to have a will, but not everyone has heeded that advice. What happens when a person dies without a will, a situation known as intestacy? In some limited circumstances, this is not a big problem. If all assets (house and bank accounts) were held jointly with someone who […] Read more
Family law plays a significant role in estate planning
Drafting a will is a common reason to visit a lawyer. A will is an important document that sets out what happens with assets upon death. Depending on your wishes, it may be prudent to seek not only a lawyer who is skilled in the area of estate planning but also one who has the […] Read more
Transition planning best if it is made part of farm’s routine
In a perfect world, transition planning for management and ownership is built into the long-term planning of a farm. However, most farms approach it like a task; a single event or point in time that needs attention. While this approach can work, it can be improved, and doing so will likely provide long-term benefits. I’ve […] Read more
When the time is right to incorporate the farm, do it right
As farming ventures grow, more of them operate as corporations. Typically, farms start with sole proprietors or as spousal partnerships. This works for a small farm, but as profitability grows, incorporation is the next logical step. Farms typically incorporate to take advantage of the low corporate tax rate on the first $500,000 of taxable income. […] Read more
It’s time to take farm estate planning back to the basics
I often choose the topic of an article based on new tax rules or trends I see in practice. However, this time I decided to try something a little different and threw out a poll on social media to see what topics may be of interest. Among the suggestions I received was a trend that […] Read more
Knowledge of capital gains rules vital for farm succession
Farm succession planning is complex. The transition of the family farm to the next generation raises several considerations, and one of the most important is how to transfer the farm in the most tax efficient way for the parents who are transitioning out and the children who are taking over. It’s important to consider Capital […] Read more
Two weeks notice usually not enough for job termination
It is a common misconception that when an employer terminates an employment relationship without cause, they are only obligated to provide the notice period prescribed by the Saskatchewan Employment Act. In reality, most employees are entitled to a much longer notice period. Under the act, in the case of a termination without cause, the employer […] Read more
Mediation is a common tool used for dispute resolution
Mediation is a dispute resolution process that many people choose or are required to participate in when they are involved in a legal dispute. In Saskatchewan, all civil lawsuits are required to participate in mediation once the claim and defence are filed. This mediation is provided through the province and is at no charge to […] Read more
