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
Tag Archives Succession Planning column
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
Practise ‘buyer beware’ when purchasing used vehicles
The purchase and sale of used vehicles is a common type of consumer transaction in modern society. In fact, the advancement of technology has made it easier than ever to identify and purchase used motor vehicles via private sale. That said, it is important that buyers take necessary steps to protect themselves in a private […] Read more
Excess cash can be tax problem for farming corporations
Having lots of cash is never a bad thing and can sometimes be hard to imagine after a very challenging year like 2021. However, for the purposes of the Income Tax Act, having too much cash inside of a farming corporation can be a problem and can result in the loss of certain tax benefits. […] Read more
Transferring the farm to the kids now has new tax rules
Business owners often look to sell their businesses when they retire. With farming, the new business owners are often one or more children. This has historically been a problem from a tax perspective. If the parents operate their business through a corporation, the sale of the business will usually proceed by selling the assets of […] Read more
Farmers must be aware of new corporation rules in Sask.
Have you incorporated a company under Saskatchewan’s Business Corporations Act? If so, you should be aware of new and upcoming corporate law rules requiring the collection and maintenance of certain information for an “individual with significant control” over your corporation. I say “upcoming” because as of late July, the new rules have been enacted but […] Read more
