In south-central Manitoba, two brothers who we’ll call Herb, 75 and Fred, 60, have farmed for more than 40 years. They’ve raised cattle and produced mixed grains. Neither has married and there are no children or other obvious heirs. In their four decades of farming the brothers have built up substantial off-farm assets. There’s enough non-registered […] Read more
Two brothers want to merge two farms, simplify ownership
Farm Financial Planner: Maximizing the proceeds from their estates for the benefit of charities will take some planning
Limited income, large hanging debt, retirement plan in jeopardy
Farm Financial Planner: What a couple in their early 70s needs to do to retire
A couple we’ll call Frank, 72, and his wife Helen, 71, live on a farm in southwestern Manitoba. They have 486 acres with mixed grains and cattle. Their present income — Frank’s Canada Pension Plan payments of $3,680 per year, Helen’s CPP benefit of $2,400 per year, two Old Age Security payments totaling $17,000 per year, […] Read more
Six quarters and two sons
The problem of fairness in an estate plan
Rob, who is 65, and Sarah, who is 61, farm six quarters of grain and pasture in northwestern Manitoba. They have two sons, Michael and Steven, each in his 30s and married. However, Steven, who has a town job, has decided he would like to try his hand at farming. The issue in devising a […] Read more
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
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
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
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
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
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
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
Cyber-Savvy Farmer
