Estate Update January 2007 from Ann Halstead

First, reminders of conclusions arrived at in the Fall 06. C.H. below refers to Christopher Hancock.

  1. We have 4 parcels, but only Megan has declared clear intentions for use of the farm.
  2. Megan & Chris Hancock intend to farm as of spring 2008.
  3. Meg wants to buy land additional to her entitlement.
  4. Chris will continue to own her portion for the time being. She would like to sell to Megan.
  5. An agreement for sale will have to be drawn up to sell Megan & C.H. their additional land. Ann has offered them a flexible agreement, details to be worked out in which payments are made when and as they can afford them.
  6. Ultimately the intention is to subdivide (within the ALR, changing the lot lines without increasing the number of lots) which will entail keeping the 4 lots but redrawing the boundaries to describe Megan and C. H.’s farm as one large lot, then 3 smaller ones, roughly 125/10/10/10 acres.

Meg, CSH and Ann met on December 29th : highlights are:

  • We need an appraisal of the whole farm in order to establish a value per acre. Eric, Shani and Chris P could be offered a $$ based on price per acre times 19 (1/8 of the farm comes to about 19 acres) .
  • The 3 smaller lots would probably be in the NE, chunks of Lot 2 and a part of Lot 3.
  • We will require a surveyor whose considerations will include marking:
    • where the existing fences are
    • where the ditches are
    • where the dugout is
    • mark out and map the proposed 4 lots

The Application process to the B.C. Ministry of Transport requires:

  1. soil percolation test data
  2. waste management plan
  3. subdivision plan with property corners, lot lines and proposed roads marked
  4. These are matters on which I will also consult the surveyor

Next, I met with Jill Hatfield, District Agrologist. Her suggestions are in line with what Megan suggested in December and she acknowledges that we are correct as to where the 3 small lots should be because this area is less productive soil for agriculture.

Next, I met with Margot Rutherford, Notary Public. Her comments were illuminating and are attached in photocopies. There is a concern that Shani will be subject to non-residents withholding tax, and Margot suggests I consult our accountant.

Next, I met with Area C Regional Director, Barry Minaker. He, confidentially, says that it would be a “worthwhile challenge” to apply for the 125/10/10/10 acre proposal which Megan outlined in December. He would support it. The chief planner warns that the ALC will be unwilling to approve a “subdivision in which the smallest lot is smaller than the existing smallest lot.”
Feb 06/07  – Today the accountant clarified the tax issue for Shani as a non-resident. She can prepare documents which will minimize the tax impacts for us all, including Shani. I will meet with her again after the personal tax rush in May….in the meantime it is best for me/us to continue working on the matter of the proposal to the M.o.T.