dad peeling potatoes while son watches

Potential heir’s U.S. residency complicates farm estate planning

Where a situation is subject to change, have a clearly defined will subject to regular review

A single father — let’s call him Dave — is in his mid-60s. He lives in south-central Manitoba. Dave inherited several quarters of choice potato land from his parents upon their passing. Over the years he has sold of a couple of quarters but still has two quarters remaining. Dave has three kids, and he […] Read more

If you have sufficient assets to pay yourself an income for the rest of your life, you’ll need to consider the best path to generate that income.

Woman, mid-60s, has successful farm and tax planning opportunities

It makes sense for her to take advantage of lower tax brackets while she can

A woman we’ll call Teresa, who farms two sections of grain in southeastern Manitoba, is 63. She works through a farm corporation worth $1.4 million and has personal farmland worth $1.75 million. The breakdown: she has non-farm assets of $419,000, savings of $400,000 plus a TFSA with assets of $100,000, and other savings of $800,000. […] Read more


Careful division of farm assets

Careful division of farm assets

Farm Financial Planner: For two brothers, the best way to manage risk and family is thoughtful planning and staying informed

In central Manitoba, two brothers we’ll call Sam and Fred, each in his 30s, inherited a successful third-generation farm with a notional value of $1 million and split fifty-fifty as a result of an estate freeze. Their parents took a $10-million slice of farm capital in preferred shares. Growth of farm value after the freeze […] Read more

cutting taxes with scissors

Couple looks for tax savings

Tax deferral essential to estate plan for farmers with hefty capital gains

In central Manitoba, a couple we’ll call Tish, 62, and Don, 65, have a dilemma. They have done well with their one section after six years of farming and 12 years of renting it to a neighbour. Their land has an estimated value of $4 million, which is a $3-million gain over their $1-million purchase […] Read more


Parents can pass farmland down to the next generation at any value between book value and market value.

How best to pass on the farm and provide for a child living with a disability

Farm Financial Planner: There are several solutions for a complicated situation

Steve, 62, and Sarah, 60, have run a successful farming operation in western Manitoba for the last 35 years. The farm consists of personally held farm assets and seven quarter sections of cropland. Steve and Sarah have two sons. Jared is 32 and Jack is 30 years old. Jared has been working on the farm […] Read more

Martha would like to retire next year.
However, if she does that, she fears
she might run out of money one day.
Estimating income for her long life
ahead is a challenge.

Options for a widow to retire and keep the farm in the family

The farm continues, Mom’s retirement is secure and assets provided for non-farming kids

Martha, as we’ll call her, is a 51-year-old widow. She owns 3,100 acres in southeastern Manitoba. Her daughter, who we’ll call Alice, is 30. Alice wants to continue the family farm, although her siblings, a brother and a sister, want to continue with their town jobs. Planning this generational transfer is complex. Martha’s personally held […] Read more


Ron and Cindy know if they were to stop farming today, they would not have enough personal assets to maintain their current lifestyle spending of $6,000 per month.

What to do when capital is short and needs are long

Farm Financial Planner: Tough decisions ahead for this Manitoba couple

A farming couple from Manitoba we’ll call Ron, 67, and Cindy, 65, have run a successful farming operation for the last 40 years. They want to retire; however, none of their three kids have any interest in farming. The farm is comprised of five quarters of land and some machinery held personally by Ron and […] Read more

Due to a shortfall in income every year, Herb and Margie will need to withdraw money from their RRIFs.

A simple retirement plan

A couple’s farmland is set up for generational transfer

In north-central Manitoba, a couple we’ll call Herb, 66, and Margie, 64, are planning retirement in just a few months. They have 320 acres they own personally. They have owned the land for almost 30 years. It will qualify for the farmland capital gains exemption. When sold, therefore, the property will not bear capital gains […] Read more


On a dollar basis, this plan is clearly unfair, for the non-farming son would appear to be shortchanged.

Plan a fair and tax-efficient exit strategy for all

How to pass on the operation to farming children while keeping share division fair for non-farmers

A couple we’ll call Bob and Linda, both in their early 60s, have run a successful farming operation in south-central Manitoba. They have 1,280 acres of which two quarters are pasture for 100 head of beef cows and the balance in wheat and barley. After 40 years of farming, they want to plan an exit […] Read more

Time and needs require a flexible estate plan

Time and needs require a flexible estate plan

Two brothers must anticipate challenges when they equally inherit the farm

In central Manitoba, two brothers we’ll call Sam and Fred, each in his 30s, inherited a successful third-generation farm split fifty-fifty. Their parents took a $10-million slice of farm capital in preferred shares. All growth of farm value subsequent to the estate freeze goes to the brothers in equal amounts to their common shares. Nathan […] Read more