Careful consideration must be given to both present and future structures of your farm. This can have dramatic consequences as to how the farm assets are taxed when they are transferred to the next family member.
More than 120,000 Canadian farmers will turn 65 within the next decade, and $50 billion in farm assets will be forced to change hands. Yet, according to a study released by the George Morris enter and the Royal Bank of Canada, despite this impending retirement boom and our own inevitable mortality, only two to four percent of farmers have a documented farm succession plan.
Today it is more of a rule than an exception, that not all of the children may wish to to stay on the farm, or desire to farm as part of extended family. This is quite a common situation in families comprised of parents and several children, and creates a dilemma of how to separate their assets upon retirement or death in a way that is equitable - yet does not compromise the financial well being of the farming operation. This same question relates to not only to farmers but to any business owner.
Issues For Land Sales:
- Tax saving strategies.
- Alternatives for investing and growing the proceeds of a potential farm sale.
- Identify potential problems and issues to avoid.
Issues For Land Succession Planning:
- Equalizing estate value for children/family members not actively involved with the farm.
- How to pay for retirement off of farm if necessary, to allow for a living transition.
- Explore possibilities to help ease the potential tax burden on future generations.
As an Independent financial advisor, my team will provide services tailored to each client’s needs and objectives. Proper planning now can help reduce emotional and financial stress when the need for insurance arises. Adequate insurance for life and long-term care is essential, and careful planning is crucial to nearly any financial goal. Having insurance coverage in place is invaluable, allowing you to focus on what matters most and not worrying about finances.
Because Wiest Insurance and Investment Management is an independent firm, we are empowered to deliver unbiased advice and are not restricted to certain investments or proprietary products – solutions are customized to meet your needs and investment objectives.
Allow us to help navigate your retirement planning, tax, estate, philanthropic or business succession plans.
Agriculture continues to be one of, if not the most important industry in Alberta…yet we have seen drastic intergenerational changes. Being raised on a 4th generation crop and cattle farm in Southern Alberta, I have the ability to work with you in developing a financial plan that focuses on successfully transitioning your farm…whether that means succession planning or sale planning. If you are expanding, or have current debt that is insured through your bank or lending facility, allow Wiest Insurance and Investment Management the chance to shop out your insurance needs and bring back a cheaper and better solution!
Corporate & Small Business
You need professional advice and guidance that can help you develop the right plan for your future and the future of your business. Wiest Insurance and Investment Management will provide sophisticated planning solutions for your business including qualified retirement plans, succession planning, buy-sell agreements, risk management, nonqualified executive benefits, and employee benefits along with developing investment and savings accounts owned by your corporation to grow your retained surplus cash.