There are a number of unique issues that can arise when a farming family goes through a separation or divorce. One of these areas arise when the parties have livestock or other animals. Generally, the specifics of how animals will be treated in the family court will vary from province to province. In Saskatchewan, animals […] Read more
Tag Archives Succession Planning column — page 4
Tracking the history of farming property is important
The Income Tax Act contains advantageous rules that are specific to farmers. Two of the most well known are: The intergenerational rollover that allows parents to transfer certain qualifying farm property to their children on a tax-free basis. The $1 million lifetime capital gains exemption that can be used to offset a capital gain that […] Read more
Advancing an inheritance early can come with risks
It is not uncommon for farming families to give land or assets to the next generation with the intention that the gift is an advance on one’s inheritance. There are many benefits of “giving sooner”: Potential to save on taxes and/or probate fees. Benefitting the next generation with their own farming operations. Reducing the asset […] Read more
Paying legal bills in estate disputes not always clear-cut
An estate will normally bear the burden of all legal fees incurred by the executor for its administration, which includes not only fees for core services but also those paid to handle more complex matters, including when a dispute arises and litigation ensues. However, there are some exceptions to that general rule and, in addition, […] Read more
Incorporation worth considering if planning to sell farm
It is never too late to incorporate your farm, even if done shortly before you stop farming. If you don’t have a successor to take over the farm, it is likely that an auction is part of the retirement plan. This means there will be a year where you have a significant amount of additional […] Read more
Homestead can be protected from family property claim
The home quarter is an integral part of most farm operations. Not only do you typically find the farmer’s homestead on this quarter, but it may also contain key buildings or fixtures. So, what happens to the home quarter if the farmer is going through a separation or divorce? Generally, family property legislation in Saskatchewan […] Read more
Caution required when rearranging ownership of an asset
I’m sure you’ve heard of someone who decided to add their adult child’s name to a parcel of land or bank account to “ease” the estate planning process and to “save probate fees.” There are pros and cons to taking this step, and it is so important to ensure that a statement of intention is […] Read more
Gift giving not always as simple as one might first think
One would think that it would be very simple to know whether someone had given you a gift, but not necessarily. It is amazing how easily there can be a difference of opinion on the topic. Consider the following example. Mom and Dad gave $100,000 to Child 1. Mom and Dad subsequently died, and Children […] Read more
Farm estate plan requires developing a solid foundation
As we enter into a new year, many people turn their mind to those tasks that may have been pushed aside in the previous year. Making sure your estate plan is in place is one task that should be on your to do list for the new year. Putting together a plan for what will […] Read more
Determining income for support purposes is complicated
In Canada, when a spousal relationship breaks down, support obligations (whether child or spousal support) are largely driven by the payor’s income. Determination of income for support purposes can be a complicated calculation, especially when a farm is involved. Income of the parties for support purposes is determined under the Federal Child Support Guidelines. Section […] Read more
