Transfer Requirements Where Property Owned by Company or Trust

Transfer must have been between natural persons

VEA→

Only transfers of property between natural persons were considered for the purpose of accepting participation in RAFS.

Transfer requirements where farm owned by a private company

VEA→

Where a private company owned the farm or farms, the farm(s) and relevant farm assets it was necessary to firstly transfer the farm assets from the company to the farmer. The farmer could then transfer the land to the younger generation as a transfer between natural persons in order to take advantage of RAFS.

Transfer of shares in company not permitted

Where a company owned the farm(s), there must have been a transfer of legal title of the land before participation in RAFS was permitted. Transfer of the private company shares by the farmer to an eligible descendant was not permitted. To participate in the scheme the transfer of the property must have been between natural persons.

Farm owned by a trust

Where the farm(s) was owned by a trust, it was possible for the farmer to qualify under RAFS by transferring their trusteeship of a private trust to the descendant(s). Under trust law, a trust is the legal owner of land held within a trust. Alternatively, the trustee may have chosen to transfer the farming assets to the farmer, who then transferred the farm assets to the eligible descendant(s).

A farmer who was trustee of a trust that owned the farm and farm assets had a qualifying interest in the farm(s). A retiring farmer who was a beneficiary only and not a trustee did not satisfy the rules relating to qualifying farmer.