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.
Corporate work has always been
the mainstay of our firm, but 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 in farm incorporation 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
may be able to help you with such concerns as:
1. Transferal of farm land.
2. The question of "mortgages back" or agreements for sale.
3. The type of farm ownership which may be best for your operation (e.g. - sole
ownership, joint tenancy, tenancy in common).
4. The best type of lease/agreement for your operation (e.g. - share
crop, cash, custom farm agreement).
5. The importance and relationship of your Last Will and Testament to your
farm operations and future plans.
6. Intergenerational transfers of land and/or farm equipment to children or
grandchildren.
7. The question of income tax and its impact on sales, transfers and/or inheritances.
8. The best way for a husband and wife to run a farm, particularly in the area
of saving on income tax (e.g. - spousal partnerships, wages, farm corporations).
Purchase and
Sale of Farmland
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. |
Intergenerational
Transfers
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
and 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.
Incorporation
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 Class C or D preferred shares, and
Section 85 rollovers. We are prepared to talk to you about these
matters and prepare documentation which reflect your needs.
Tax Law
As
lawyers working in the country 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.
WE
WOULD BE PLEASED TO ASSIST YOU. |
