It’s time to make a plan. A comprehensive guide on the farm succession planning process.
Did you know that only 8.5% of farm operators in Alberta have a formal succession plan in place? The farm succession guide is a resource that helps you take the first step to succession planning and transitioning your farm.
In this free guide, we’ll analyze various situations and the impact factors such as asset allocation, tax considerations, and credit options have on your succession plan, providing all the information you need to get started.
We’ll also take you through a generalized but realistic example, following the journey of Frank and Sharon Thompson, a couple in their mid 50’s who are looking to retire from their family farm in the next 10 years. The Thompson’s have 3 kids together, one of whom is interested in taking over the operation. Their journey provides insights into the complexity of next-generation succession planning and the considerations that need to be made for farming and non-farming beneficiaries.
In this Farm Succession guide you will learn about:
- Gifting vs selling. To gift or not to gift. When transitioning the family farm on to the next generation, owners have a big decision on whether to gift or sell the farm.
- Equal vs. fair. When distributing the farming estate to the next generation, equal is not always fair because many of the assets are fixed and essential to the operation. Learn more about how to split assets among farming and non-farming beneficiaries while still ensuring the viability of the business.
- Lifetime capital gains exemption. We examine one of the significant tax benefits that may be available to farming families: the lifetime capital gains exemption (“LCGE”).
- Credit options: There is no one-size-fits-all solution when it comes to agricultural credit, but the best way to approach these decisions is to balance the financing needs with what the farming operation can actually manage.
- Intergenerational transfers. An intergenerational rollover, either before or after the owner’s death, may allow the transfer of certain farming assets to the next generation on a tax-deferred basis.