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
Tag Archives succession planning — page 3
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
Beach or barn? Depends on the retirement plan
The direction that a farm family’s succession planning takes will often be determined by the retiring parents’ future plans
Fall is usually when the phone starts to ring and farmers want to talk about succession, transition or sale, says Curtis Palichuk, managing partner of Wilde Advisory Group in Vegreville, Alta. When farmers come into the accounting office weary from harvest, they are reminded that the best farm transition and succession is a process that […] 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
Farming needs new land tenure options
Farm succession is partially motivated by a love of family and land in both generations. Despite tensions between generations and varying expectations, succession works well in some cases. Today, many farms are aggregated parcels of land with equipment, infrastructure and perhaps quota, often incorporated, even if they are family run, and may not include the […] Read more
