TransitionSMART

A financial plan outlines where money will come from and how it will be spent. It also addresses tax implications regarding annual living and if you relocate when you retire.

• Describes the retiree’s future lifestyle.
• Includes a financial plan outline where money will come from and how it will be spent, both for annual living (e.g. food, hosing, utilities, medical, travel, taxes, etc.) and relocation (if necessary). Also explains any retirement income planning (e.g. RRSPs, RRIFs, CPP, OAS).
• Provides the address(es) where everyone will live.
• Considers the tax consequences for the retirement plan.
• Determines the extent to which the retirees will be involved in the farm business. 

By assessing your net worth and reviewing business financials, we help you build a plan that meets your immediate needs and retirement goals.

• Provides an outline of how your farm business will meet the needs of both the successor(s) and retiree(s).
• Analyses of the current farm business.
• Outlines the plan for the future direction of your farm business (e.g. maintenance, contraction, expansion, diversification, value-added) and provides a description of how this will affect your business, along with projected financial statements. 

Overview of how the farm business is currently structured and how this will change during the transfer.

• Provides an outline of how your farm business is currently structured and how this will be changed.
• Explains how the transfer of ownership of the assets will be handled.
• Includes an inventory and valuation of assets and liabilities.
• Identifies what the business arrangement is going to be (e.g. sole proprietorship, corporation, or partnership).
• Identifies the transfer mechanism (e.g. purchase, gift, rental, etc.).
• Includes a prenuptial agreement (if necessary).
• Addresses tax implications.
• Explains the treatment of non-farming children.
• Outlines the insurance requirements (e.g. life, disability).
• Provides a copy of the will to the consultant or an overall description of the intent to assist with the ownership transfer plan (if required).
• Describes any other legal agreements (e.g. employment contracts, partnership agreements, shareholder agreements, buy-sell agreements). 

Is an outline by which the family communicates and makes decisions on key issues.

• Provides a description and plan regarding family business meetings to discuss such issues as the progress of the transfer process and necessary changes (e.g. procedures, responsibilities, non-farming family member involvement, etc.). The end product will be a user’s manual.
• Defines the process by which the family communicates and make decisions (e.g. regularly scheduled family meetings).
• Determines how disputes and conflicts will be managed and resolved (e.g. family voting, third-party mediation assistance). 

A skills profile outlining what is needed to manage the farm. The plan also identifies skill gaps for key stakeholders and a performance review mechanism to gauge progress in training and development for successors.

• Provides a skills profile for the successor (outlines the skills needed to successfully manage the farm and how those skills will be obtained).
• Identifies skill gaps and an action plan on how they will be met (e.g. hiring to fill gaps, additional training, etc.). If both generations will remain involved, it could be beneficial to have them attend the same training courses.
• Provides an outline of a performance review process and mechanism to provide the successor with feedback on progress.

An outline of how everyday activities will be managed including roles, responsibilities and authorities for managing the operation on a daily basis.

• Projects how the transfer of management, control, and labour will take place, including a timetable for transition to the successor(s)
• Considers what the future governance should look like 

A summary outlining the overall timing of key activities within the transition process so they can be monitored, measured and amended.

Identifies risks and lists factors that may affect your transition plan including death, disability, divorce, illness, or business downturn.

• Explains what will happen and who will ensure implementation in adverse situations.
• Incorporates steps to avoid/mitigate the risks (e.g. wills, life and disability insurance).
• Allows for this contingency plan to be updated from time to time (if necessary).
• Considers what the formal agreement should look like