Farming has become a complicated business, filled with many legal and tax-related problems. Lawyers have various roles, an important one being "problem solving". However, many problems are best solved by being addressed before the problem arises.
In the last decade, farm incorporation has increased significantly. The City of Weyburn is the largest grain delivery point on the prairies resulting in our firm working extensively with farm incorporations in addition to the usual commercial and oil-related corporate services.
Lawyers in rural areas have a strong understanding and appreciation of farm-related problems. A lawyer can help you with such concerns as:
Transfer of farm land.
The question of "mortgages back" or long term agreements for sale.
The type of farm ownership which may be best for your operation (ie sole ownership, joint tenancy, tenancy in common).
The best type of lease/agreement for your operation (e.g. - Crop share, cash, custom farm agreement).
The importance and relationship of your Last Will and Testament to your farm operations and future plans.
Intergenerational transfers of land and/or farm equipment to children or grandchildren.
Income tax and the tax implications for sales, transfers and/or inheritances.
The best way for a husband and wife to run a farm, particularly in the area of saving on incometax (e.g. - spousal partnership, wages, farm corporation).
Purchase and Sale of Farm Land
We understand the importance of properly drafted agreements, the tax implications of purchasing and selling farmland, the consequences of tax allocations, capital gains, proper mortgage agreements, and the preparation of special Agreements for Sale.
We do not consider our job to be done the moment you have signed the Transfer, Mortgage, or Agreement for Sale.
What should your adjusted cost base be? Should you use your capital gains exemption? Do you wish to protect the father and the mother if the land is transferred immediately? What about children who are not farmers?
Wills & Estate Planning
We wish to ensure your farm's viability for many years into the future. Have you thought of establishing a family trust? What about the children who don't farm -how are they to receive a portion of your estate? How do you keep the family farm together so as to benefit the child or children who wish to farm? To us, estate planning is much more than just signing a Will.
Many farmers are incorporating. Should you? We work with accountants to ensure that your farm is properly incorporated and based upon what is best for you, in your particular circumstances. What works for your neighbor may not necessarily work for you. In addition to incorporation, there may be the issue of a family trust, the issuance of preferred shares, and Section 85 rollovers. We are prepared to talk to you about these matters and prepare documentation which reflect your needs.
As lawyers working in a rural area and dealing with agricultural issues every day, we understand agricultural tax law. We understand that, as farmers, you work hard and are entitled to a reasonable return on your efforts. We will do our utmost to ensure that your tax liability to the government is proper, and is reduced to the smallest possible percentage that the law allows. We will attempt to preserve your estate and your farm income and, to this end, we will suggest alternatives such as incorporation, trusts, appropriate intergenerational transfers, etc.
Contact the Office for more assistance!