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
A simple retirement plan
A couple’s farmland is set up for generational transfer
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
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
When circumstances change, make new plans
How to protect your farm and your loved ones as lifespans decrease and asset values rise
A couple we’ll call Luke and Mary, who are both in their late fifties, live in southwestern Manitoba. They have recently moved in together. Love may be forever, but tax and inheritance law make it essential they review their finances. Farm Financial Planner asked Colin Sabourin, a certified financial planner with Harbourfront Wealth Management in […] Read more
Tax strategy raises income for couple in mid-life
The issue is financial efficiency
A couple we’ll call Harry, 50, and Margie, 49, own three sections in central Manitoba. They have a mixed farm operation producing hay and grains. They estimate their farm, machinery and inventory is worth $3.5 million. They need $84,000 a year after tax to maintain their way of life. The problem is getting that money […] Read more
A durable plan to pass on the farm
The eldest child takes over the farm while siblings receive profits as shareholders of the farm corporation
In south-central Manitoba, a farmer we’ll call Ralph, 48, and his wife, who we’ll call Susie, 46, have three children ages 13, 14 and 18. Ralph and Susie want to retire in 17 years, when Ralph is 65. The plan is for the eldest son, who we’ll call Parker, to take over the farm. It’s […] Read more
How to keep legacies fair for non-farming kids as land values soar
Parents worry their bequests will not be fair due to the appreciation in land prices
In southern Manitoba, a farming couple we’ll call Bob and Suzy (not their real names) are, at their respective ages of 82 and 80, approaching full retirement. They have one son who farms and two daughters who have city jobs. The children are in their 40s. Bob and Suzy are contemplating posterity and are eager […] Read more
Parents of four adult children would like to retire
How to make fair provisions for all
A couple we’ll call Mike, 85, and Judy, 83, farm 1,200 acres in southern Manitoba not far from Brandon. Their farm has been reduced from its largest measurement, 2,500 acres. They have four sons. Two have their own farming operation of 2,000 acres each. A third son has a job off-farm. A fourth son we’ll […] Read more
New farm transfer strategy aids couple with shrinking retirement funds
Farm Financial Planner: Now they can provide for children and increase nest egg
A couple we’ll call Max and Susan rent 320 acres to their son, who we’ll call Ernie, in central Manitoba. They are retired. Their problem is how to provide for their two daughters who do not farm. Worse, the retirement nest egg they put together years ago has been eroded by inflation and low returns […] Read more
From a private business to the family corporation
What’s left after harvest depends on how the farm is organized and taxed
The idea of the family farm is just that — a concept. The reality is that tax rules, inheritance law, good business practice and the fundamental problem of making a living have changed the family farm from a private business to the family corporation. Organization and tax rules are now almost as important as farm […] Read more
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