My father, who was farming, has recently passed away, leaving the farm to my mother. We are about to go through probate with his estate, a process which our solicitor tells us will take up to 16 weeks. It had been our intention that I would purchase the farm livestock on 31 December, take over the herd number and farm the land on a free lease until probate is completed. At that time, my mother was to transfer the land into my ownership and I would establish the basic payments in my name. However, having spoken to two ag consultants, neither can tell me when the land must be registered in my name for this to be feasible, or if it is best to leave the farm in my mother’s name for the duration of 2015 and establish the entitlements in her name?
Firstly, sorry to hear about your father. Normally your query would be straightforward, but the changeover to basic payment entitlements in 2015 has complicated it slightly. The positive thing is that in 2015, in the case of deaths the entitlements will follow the land even if they are not mentioned specifically in the will. In previous years, they could have fallen into the residue and, for example, gone to a charity.
The key here is that in inheritance cases the entitlements follow the transfer of the land. If you were sure that probate would be completed and the land transferred over to you by 15 May, then the best course of action would be for you to submit the application with the land and establish the entitlements. However, if you are not sure that it will be done by 15 May 2015, then your mother would be better to put the application in for the basic payment.
This would mean that she establishes the entitlements, which then can be transferred to you after 1 June 2015. As your mother inherits the land, she also steps into your father’s shoes with regard to retirement relief when transferring to you. The fact that the land will be valued at market value on the transfer and she is passing it on to you immediately, means there will be no capital gains tax for her to pay.
You do not say how many acres? I ask this, because you could be exposed to inheritance tax if the value was over the €225,000 threshold. The fact that you are buying the livestock at market value means it will not be counted. You could be eligible for agricultural relief that would reduce the value by 90%. From 1 January 2015, there is a more targeted agricultural relief that means you have to have agriculture qualifications (or get them within four years) or work 50% of your normal working time on the farm. That is up to 20 hours if you work 40 hours off-farm.
The Department has set up an excellent inheritance enquiry unit, as following the death of a farmer it can sometimes be difficult for the representatives of the deceased to secure outstanding payments and the transfer of the Single Farm Payment scheme entitlements. This is because of the need to make contact with multiple areas of the Department. The aim was to make this process as straightforward as possible.
Following the death of a farmer, there are generally two issues that you have highlighted:
• A change to the registration details of the herd number/herd keeper.• The transfer of any SFP entitlements held by the deceased and also payment of any outstanding money due to the estate of the deceased.The function of the Inheritance Enquiry Unit is to ensure the payment of any outstanding money due to the estate of the deceased, where appropriate. Also, it advises on the transfer of any Single Farm Payment entitlements held by the deceased. Get the executor/administrator of the estate and the solicitor dealing with the administration of the estate to contact them if they have any queries.
Inheritance Enquiry Unit, Department of Agriculture, Eircom Building, Knockmay Road, Portlaoise, Co Laois. Call 1890-252-238, or email
inheritance@agriculture.gov.ie
Herd number issues
The Regional Veterinary Office (RVO) carries out the task of changing the name on the herd number. When the RVO is notified of the death of the farmer, it carries out the following tasks:
• Records the death of the farmer on the Department’s systems.• Commences the process of herd transfer details and subsequently changes the registration details of the herd owner.• Where appropriate, arranges for the registration of a herd keeper, with responsibility for the management and care of livestock in the herd.
My father, who was farming, has recently passed away, leaving the farm to my mother. We are about to go through probate with his estate, a process which our solicitor tells us will take up to 16 weeks. It had been our intention that I would purchase the farm livestock on 31 December, take over the herd number and farm the land on a free lease until probate is completed. At that time, my mother was to transfer the land into my ownership and I would establish the basic payments in my name. However, having spoken to two ag consultants, neither can tell me when the land must be registered in my name for this to be feasible, or if it is best to leave the farm in my mother’s name for the duration of 2015 and establish the entitlements in her name?
Firstly, sorry to hear about your father. Normally your query would be straightforward, but the changeover to basic payment entitlements in 2015 has complicated it slightly. The positive thing is that in 2015, in the case of deaths the entitlements will follow the land even if they are not mentioned specifically in the will. In previous years, they could have fallen into the residue and, for example, gone to a charity.
The key here is that in inheritance cases the entitlements follow the transfer of the land. If you were sure that probate would be completed and the land transferred over to you by 15 May, then the best course of action would be for you to submit the application with the land and establish the entitlements. However, if you are not sure that it will be done by 15 May 2015, then your mother would be better to put the application in for the basic payment.
This would mean that she establishes the entitlements, which then can be transferred to you after 1 June 2015. As your mother inherits the land, she also steps into your father’s shoes with regard to retirement relief when transferring to you. The fact that the land will be valued at market value on the transfer and she is passing it on to you immediately, means there will be no capital gains tax for her to pay.
You do not say how many acres? I ask this, because you could be exposed to inheritance tax if the value was over the €225,000 threshold. The fact that you are buying the livestock at market value means it will not be counted. You could be eligible for agricultural relief that would reduce the value by 90%. From 1 January 2015, there is a more targeted agricultural relief that means you have to have agriculture qualifications (or get them within four years) or work 50% of your normal working time on the farm. That is up to 20 hours if you work 40 hours off-farm.
The Department has set up an excellent inheritance enquiry unit, as following the death of a farmer it can sometimes be difficult for the representatives of the deceased to secure outstanding payments and the transfer of the Single Farm Payment scheme entitlements. This is because of the need to make contact with multiple areas of the Department. The aim was to make this process as straightforward as possible.
Following the death of a farmer, there are generally two issues that you have highlighted:
• A change to the registration details of the herd number/herd keeper.• The transfer of any SFP entitlements held by the deceased and also payment of any outstanding money due to the estate of the deceased.The function of the Inheritance Enquiry Unit is to ensure the payment of any outstanding money due to the estate of the deceased, where appropriate. Also, it advises on the transfer of any Single Farm Payment entitlements held by the deceased. Get the executor/administrator of the estate and the solicitor dealing with the administration of the estate to contact them if they have any queries.
Inheritance Enquiry Unit, Department of Agriculture, Eircom Building, Knockmay Road, Portlaoise, Co Laois. Call 1890-252-238, or email
inheritance@agriculture.gov.ie
Herd number issues
The Regional Veterinary Office (RVO) carries out the task of changing the name on the herd number. When the RVO is notified of the death of the farmer, it carries out the following tasks:
• Records the death of the farmer on the Department’s systems.• Commences the process of herd transfer details and subsequently changes the registration details of the herd owner.• Where appropriate, arranges for the registration of a herd keeper, with responsibility for the management and care of livestock in the herd. 
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