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4 - TUESDAY, July 11, 1995 Gr FARM & COUNTRY LIFE Farm families needed Farm families are need- ed to host a pair of partici- pants, one Thai and one Canadian, for 12 weeks beginning on July 24 for the Canada World Youth exchange in the Uxbridge/ Scugog region this sum- mer. Participants between the ages of 17-20 will work a minimum of four days per week on the farm and will be encouraged to con- tribute wherever possible to the life of their host fam- ily. They are more than guests, and are to partici- pate in the daily activities and chores of the host fam- ily, both in the house and on the farm. Families are chosen for their interest in learning about different cultures and also in sharing their lifestyle with the partici- pants. Canada World Youth will give each fami- ly $100 per week to help cover the costs of food and lodging. One day per week, the participants will take part in an Educational Day. During these days the group will learn more about the history of the area, its economic base, so- cial and cultural aspects, and local policies. In addition, partici- pants will attend a Com- munity Day once per week. The group will use the day for school presen- tations, projects with the town council, social ser- vice contributions, study tours etc. Ann Witteveen is the Canadian Project leader for the exchange. She will be joined by a counterpart from Thailand in July. Be- tween the two of them, the Project Leaders will be re- sponsible for coordinating all the activities of the group in the community. Canada World Youth was founded in 1971 to create cross-cultural learning experiences for youth. The combination of living and working In small communities In Canada and in developing countries allow youth to develop leadership and communication skills, gain practical training and deepen their under- standing of other commu- nities and cultures. If you think your family might be interested in be- coming a host family you can contact Ann at 852- 6081. Youth exchange to Uxbridge Canada World Youth is operating an internation- al educational program in the Uxbridge area from July 21 to Oct. 11, 1995. Seven young Canadian adults will be joined by an equal number from Thai- land. All will live and work on farms and become in- volved in the community. If you would like to know more about the ex- change or if you would like to be involved, perhaps as a host family, please con- tact Ann Witteveen at 905-852-6081. 2¢ North American Life The Informed Choice Bob Brozina BAA. CLU, ChFC. Bus. (905) 433-1822 Res. (905) 985-9003 843 King St. W., Oshawa Life Insurance * Mortgage Insurance Out of Country Medical ¢ Annuities people maximize their dollars. All enquiries welcomed No charge for consultations North American Life Disability Insurance RRSPs Our role is to help NEW IDEA & HESSTON HAY DAY WEDNESDAY, JULY 19, 1995 11amto4 pm FIELD DEMONSTRATIONS - ARIE MANINTVELD FARM PARTICIPATING A monthly column on Financial Planning for Farmers An important part of a farmer's financial planning is the "Estate Plan." The purpose of an estate plan is to keep together what you have spent a lifetime building. It determines your spouse's standard of living, and your children's prospects. It will determine if you are the last of your family on the land. It is your legacy. Something is going to happen to your assets upon death anyway. The estate plan simply affords you some control over that result so that you can take care of the people and things that are most important to you. No two plans are exactly alike, but I will try to summarize some of the components that should be included and some of the questions that should be answered. Estate Liquidity/Conservation: Most viable farms today are worth a million dollars or more after one considers the value of land, product, machinery, buildings, quotas, etc. However, very little value is in cash or easily cashable assets. In the event of death, where will the money come from to pay last expenses? Loans and mortgages may become due immediately as will tax returns, including any accrued capital gains. Where will continuing income for your children and spouse come from? Will assets have to be sold? Will they bring fair market value or be sold at deep discount? Planning can often avoid forced liquidiation and provide sufficient capital when it is needed. Estate Equalization: Land and building lots cannot be severed at will today. Can the children be treated equally? Can they be treated fairly? Can your son or daughter afford to take over the farm if they must mortgage it to pay off their siblings or their mother? What will your spouse live on if you give the farm to your child? Would your child be content to run the farm as a tenant until he inherits it from the longest surviving parent? By planning ahead many of these problems can be answered affordably, fairly, and, in the process, avoiding deep rifts and hard feelings among family members. Key Person Protection: The contribution of one or more individuals is often key to the financial success of a farming operation. The death or disability of that individual could end or severely impair the financial viability of the farm. Plans should be in place to either subsidize the loss or to cover the cost of a replacement manager or employee until the business is reorganized or until the operation is disposed of in an orderly manner. Business Loan Protection: Most loan balances become due immediately upon death. Will the lender who did business with "ASH CROP by Bob Brozina THE PORT PERRY STARK you be willing to extend the same credit to your spouse? Your child? Is the farm now a less attractive business risk? Did the lender require you to assign your personal assets to a corporate loan? Most debts can be life insured so that they do not outlive the borrower. A portion of the premiums paid on such insurance can often qualify as a tax deduction. Buy-Sell Agreement: Many farms are owned in partnership or are incorporated with more than one shareholder. Did you know that the death of a partner operates as an automatic dissolution of a partnership? If your partner died or became disabled, do you want his wife, or his wife's new husband as your partner? Can you do your work and his work and still split the profits? Can you afford to buy him out? What is a fair price? Where will you get the money? A carefully worded Buy-Sell Agreement answers and solves many of these problems. Will: This is the basic blueprint of your estate. It declares your wishes. It is an important document for anyone, but it is vital for individuals with children and becomes increasingly important for larger or more complicated estates. Without a will you are subject to the laws of intestacy of Ontario. Power of Attorney: Should you be rendered incompetent without a power of attorney, the Province of Ontario has the right and obligation to manage your affairs and assets for you. Recent experiences with the Office of the Official Guardian have resulted in many examples of management grossly at odds with what the individual or his family would have wanted. For a family member to obtain power of attorney after the fact, is now very complicated and can be very expensive. This is an important item to discuss now with your family and your attorney. I have just touched upon some of th topics that may be addressed when contemplating an estate plan. I will expand on some areas in future columns. However if any of these questions gets you thinking about your own situation, then we have achieved something worthwhile. If you have any specific questions or suggestions for future "Cash Crop" topics, please send them to Bob Brozina, c/o The Port Perry Star, 188 Mary St., Port Perry, Ontario, LIL 1B7. Bob Brozina is a practicing insurance agent with North American Life in Oshawa. He is a chartered life underwriter, a chartered financial consultant and director of training with NALACO for Central Ontario. DEALERS: B & W FARM SERVICE Nobody knows hay like . Sunderland (705) 357-3760 HESSTON we CALLAGHAN FARM SUPPLY 2 Lindsay (705) 324-8686 W.J. LAMBERT & SONS Beaverton (705)426-7374 G.E. TODD EQUIPMENT LTD. BEAVERTON WOODVILLE Ontario County offers $300 milk scholarship Three hundred dollars to a worthy student to en- ter any recognized College of Agricultural Technolo- gy, O.A.C. or the College of Family and Consumer Studies at the University of Guelph. Requirements: Resi- dent of Durham West or the Township of Ramara, have completed at least two 4-H projects and/or be an active member of Jun- lor Farmers. Be active in community activities. (| LINDSAY COMMUNITY SALE Monday July 31st at 11 a.m. CS ------ A Millbrook (705)932-2182 VALLANCE EQUIPMENT & RENTAL LTD. Brooklyn (905) 655-3291 HAY DAY Arie Manintveld is HIGHWAY 12 HIGHWAY 46 * OAKWOOD MANILLA ® SUNDERLAND HIGHWAY 7 TO LINDSAY ILLUNCH WII... BIZ AVAILABILIC * Second Monthly Holstein Salee Hickson Sales Arena RR #2 Lindsay Selling Fresh & Springing Cows & Heifers Barn opens at 7am Selling Regular Monthly Sale Last Monday of each month Next Sale Monday August 28 Carl Hickson _ Sale Barn Arnot Wotton (705) 324-9959 (705) 324-2774 (905) 263-2512 Applications available at OMAFRA Office. Deadline: Sept. 1 to Dave Andrews, #2, Can- nington, LOE 1EO. Bo WAY0\V=1q (Y=) In Farm & (0701110) (3A | {= call Reid at the Port IASC] 085-7383 EE rr ray