Generally speaking, most people assume that assets brought into a spousal relationship (marriage or cohabitation in a spousal-like relationship for at least two years) are exempt from division should the spousal relationship break down. While there is some merit to that statement, it is not absolute and many traps can arise that will result in […] Read more
Tag Archives Succession Planning column
Steps can be taken to make succession plan sustainable
Where will your farm be in 20 years? Who will be farming? Who will own the land? Most importantly, what are you doing today to make sure that this plan is sustainable? In our Dec. 3 article, “Estate plan tips to recognize farming, non-farming kids,” we covered land planning from the parent’s perspective. In this […] Read more
Compensation can be complex for incorporated farmers
While a corporation can introduce benefits into a business owner’s life — hello lower corporate tax rates and liability protection — it also introduces additional complexities. There is one complexity in particular that each corporate owner must deal with annually — how are they going to get paid? There are three options: salary, dividends or […] Read more
Advance planning plays key role in successful retirement
This article contains a cautionary tale about the Kash family, a fictional farming family that didn’t want to put any effort into planning for their retirement. Instead, they were aware of favourable tax rules that allow for transferring farm property to children on a tax-deferred rollover basis, and therefore their “plan” was to just give […] Read more
Transition planning needs non-farming family members
The non-farming members of a farming family can be a great resource and important contributors to the transition planning process. However, communication and involvement are highly correlated with positive planning experiences for all stakeholders. Early adoption of formal communication can mitigate potential conflict and leverage the contributions from the non-farming members. Non-farming family members have […] Read more
Power of attorney is an integral part of estate planning
Who do you want to make decisions for you when you no longer can? This is an important question to consider. A power of attorney can accomplish this and provide you peace of mind that your affairs will be managed when you can no longer do so. What is a power of attorney? A power […] Read more
Incorporating the family farm can have its advantages
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
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
