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
Tag Archives succession planning
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
When the time is right to incorporate the farm, do it right
As farming ventures grow, more of them operate as corporations. Typically, farms start with sole proprietors or as spousal partnerships. This works for a small farm, but as profitability grows, incorporation is the next logical step. Farms typically incorporate to take advantage of the low corporate tax rate on the first $500,000 of taxable income. […] Read more
Farms urged to consider new succession bill
Farmers are advised to take advantage of the revamped Bill C-208 because it offers them significant tax savings when it comes to succession. Brandon-Souris MP Larry McGuire initially introduced it as a private member’s bill in 2021. It sought to amend the federal Income Tax Act to exclude the intergenerational transfer of farms and other […] Read more
Timing is vital when using agriculture’s special tax rules
Unlike other industries, farming has special tax rules that allow for the transfer of an individual’s shares of a farming corporation to the next generation on a tax-free rollover basis. For other industries, the value that has accrued on Mom and Dad’s shares are eventually taxed to Mom and Dad, either by way of share […] Read more
Knowledge of capital gains rules vital for farm succession
Farm succession planning is complex. The transition of the family farm to the next generation raises several considerations, and one of the most important is how to transfer the farm in the most tax efficient way for the parents who are transitioning out and the children who are taking over. It’s important to consider Capital […] Read more
Options are available when planning for farm succession
In Canada, the average age of farmers has steadily increased over the last 20 years. A recent study by the Royal Bank of Canada, Boston Consulting Group and researchers from the University of Guelph found 40 percent of farm operations are expected to see these farmers retire in the next 10 years. The study also […] Read more
Estate planning help offered
Farm Credit Canada has introduced a new will and estate pre-planning tool that will provide producers with a starting point when thinking about how to successfully plan for the future of their operations. It is based on Tom Deans’ Willing Wisdom Index platform but has been adapted to reflect the unique needs of Canadian farm […] Read more
Malt keeps the wheels turning
NEW NORWAY, Alta. — Low prices and a busy off-farm job convinced Dean Durand to sit down with his parents in 2005 and question why they were still farming. “Canola was priced at $6 a bushel and barley was $2 and it didn’t make any sense. It was a tough one. We sat down at […] Read more
Retirement decision day: why wait any longer?
A post-harvest vacation from their grain farm helped give a farm couple the perspective and distance to make a decision
Carlyle, Sask. — A week after Trevor and Nickie Doty held their farm equipment sale they were on a flight to Mexico. “Right now we’re sitting in the kitchen of our condo looking out at the Pacific Ocean. It is beautiful here. Our aches and pains are all gone,” said Trevor of Carlyle, Sask. The […] Read more
