The Milk Producer - January 2010 - (Page 18)

FARMFINANCE By Kurt Oelschlagel Planning for the future Preparing your estate plan sooner rather than later will ensure your heirs get their due state planning has many objectives and is often described as an art rather than a science—there are few general rules that will apply for all individuals. Simply put, the goal of estate planning is to: • Maximize the value and preserve control of your assets during your lifetime; • Minimize and defer tax and other costs arising upon death; • Allow for an orderly transition of assets to your beneficiaries; • Provide for your dependants, including decreasing their taxes where possible; • Ensure equity and fairness among beneficiaries of your estate. A good estate plan will also ensure you have saved adequately for your retirement, either by contributing to your Registered Retirement Savings Plan (RRSP), other pension plans, or through other savings. It will also help your family deal with potentially difficult legal and tax matters at the time of your death. It is best to discuss your goals and objectives concerning estate assets with your family in the early planning stages. Remember, you are not only passing on ownership of the business, you’re also providing for management succession. Estate planning is a complex task. Take the time to consider both shortand long-term planning issues to help minimize the taxes you and your family will have to pay. Life insurance Life insurance is an important part of 18 | January 2010 | MilkPRODUCER estate planning, and has several functions. It can provide tax-free payouts to beneficiaries, and is a powerful tool when used alongside an estate freeze. An estate freeze ensures future growth of your estate accumulates in the hands of your beneficiaries. By freezing the value of your estate, you will effectively lock-in the tax that arises upon your death.

Table of Contents for the Digital Edition of The Milk Producer - January 2010

The Milk Producer - January 2010
Editor's Note
DFO Vice-Chair's Message
Contents
Dairy Update
Farm Finance
Processor Spotlight
DFC Promotion
Victory Over Johne’s
Applied Science
Research
Ruminations
Farm Energy
Markets
New 'N' Noted
Back Forty

The Milk Producer - January 2010