Income tax act changes could help extended family members inherit farms

Who will inherit the family farm is a question that is becoming more difficult to answer as inheritance tax laws keep many potential heirs on the sidelines financially.

Why it matters: Under the current Income Tax Act, only immediate children can inherit a family farm tax-free.

This means significant financial implications for those who do not qualify, which has prevented many eager farmers from being able to afford taking over an established family farm.

This is something that Derryn Shrosbree wants to see changed. Shrosbree operates a family farm in Mount Forest, Ont., and is the founder of 33seven, a national advisory firm specializing in farm succession planning, estate equalization and generational wealth protection for Canada’s agricultural families.

Read more: Farmtario