The Canadian Entrepreneur Incentive, introduced in the 2024 budget, offers tax breaks on capital gains to support entrepreneurs, including farmers. Producers should consider this new incentive when evaluating their succession planning with their trusted advisers. The CEI can be used as way to further reduce taxable income on the sale of qualifying farm property above […] Read more
Tag Archives succession planning
Family property divorce exemptions not always airtight
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
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
Estate plan tips to recognize farming, non-farming kids
Rural communities all have stories about farmland deals gone bad, land sold through divorces, and non-farming siblings inheriting land and selling it out from under the farming sibling. That’s likely why many parents want to give most, if not all, the farmland to the farming child(ren), so the farm remains in the family. This typical […] 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
Low-stress succession needs everyone on the same page
Consultant says she has found that clear, consistent communication is key to navigating the high waters of farm transition
Glacier FarmMedia – Passing the torch can add stress to a farm family’s already stressful lives, but it doesn’t have to be that way, says Patti Durand of Brightrack Consulting. Before starting her consulting business, Durand worked for five years as a business adviser at Farm Credit Canada, during which she helped more than 350 […] Read more
How to avoid a ‘family war’ on farm succession
An estate planner says a family conference that includes lawyers can help take the teeth out of farm transition disputes
Glacier FarmMedia – There are countless books, articles and seminars with advice on farm succession but those resources often fall short of addressing how to salvage things when family discussions fall apart. Farmers can take the teeth out of disputes by incorporating a purposeful family conference into the proceedings, farm management adviser John Poyser told […] Read more
Federal government’s bare trust/tax filing saga continues
I have previously written two articles on the federal government’s folly around new rules on bare trusts. In this third instalment, I bring the readers up to date on the federal government’s latest position on the bare trust tax filings. Related stories: By way of reminder, a bare trust is a trust relationship characterized by […] 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
