Farmers spend countless hours preparing for the growing season – tuning equipment, refining crop plans and securing inputs. But when it comes to tax and estate planning, that same level of diligence is often overlooked. A well-maintained plan can mean the difference between a smooth transition and costly surprises.
This article outlines three key areas that farm operators should revisit periodically:
- Operational structure: Choosing the right business structure – whether sole proprietorship, partnership or corporation – can significantly impact tax efficiency. For example, incorporating may allow access to lower corporate tax rates, but timing and income levels matter.
- Tax tools for transition: Unique provisions in Canada’s tax system can help reduce tax liabilities when selling or passing on the farm. These include the lifetime capital gains exemption and rollover provisions that require careful planning to use effectively.
- Estate planning documents: Wills, powers of attorney and succession strategies should be reviewed periodically to reflect changes in family dynamics, asset values and long-term goals. Outdated estate planning documents increases your risk of estate litigation.
Read the full article on The Western Producer.
A qualified legal adviser can help tailor these strategies to your specific situation, ensuring your plan evolves with your business. Contact the author or a member of our taxation, estates or agribusiness teams today.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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