Throughout our recent succession series in the Irish Farmers Journal our readers shared a wealth of thoughtful feedback. Among the many questions we received, certain themes came up again and again. Here are the 10 most frequently asked questions.
1 What are the three most important things to think about if I’m planning to transfer my farm to my child?
Parental security: the older generation needs to be financially and emotionally secure after the transfer. This includes having a home, a source of income, and peace of mind.A sustainable plan for the successor: the child taking over must have a resilient, long-term vision for the farm, as well as the flexibility to adapt to future challenges.Fairness to non-farming children: while ‘fair’ doesn’t always mean ‘equal,’ ensuring that all children feel respected and provided for is essential to avoid disputes.2 What are the three most common problems (or mistakes) solicitors see when farms are transferred?
Rushing the process: a successful transfer takes time, often several years of planning.Unnecessary complexity: making overly complicated arrangements can create confusion. Always plan for worst-case scenarios.Poor communication between advisers: farmers need their solicitor, accountant, and agricultural consultant working together. When advice isn’t coordinated, details can fall through the cracks.3 What are your tips to protect the farm if my parents end up in a nursing home? (Fair Deal)
The five-year rule: assets transferred at least five years before entering care are excluded from the means test.Successor farming: if a successor has been actively farming, the farm may qualify for the three-year cap, meaning it is disregarded from the Fair Deal calculation after three years.Cost sharing: when transferring the farm, it is wise to include provisions that the successor will help with care costs for up to five years if needed.4 I’m about to transfer the farm to my child – should I hold back some land for myself as security?
The decision to hold back land depends on individual circumstances. Ideally, parents should retain non-farming assets or secure income from the farm rather than keeping land. If some land is retained, it should remain actively farmed, perhaps through a partnership or joint herd number, so that tax and scheme benefits continue.
5 I’m getting the family farm very soon – should I give my parents a lifetime right of residence in their farmhouse?
When passing on the farmhouse, it’s important to distinguish between:
General right of residence: parents may live in the house, but ownership rests fully with the child. This is the only arrangement compatible with Agricultural Relief from Capital Acquisitions Tax (CAT).Exclusive right of residence: only the parents can live there.Life interest: parents retain ownership until death or surrender of the right, delaying full transfer.
6 My son has no interest in the farm, can I leave the land to my niece who loves farming?
Legally, children have no automatic entitlement to inherit the farm. A parent can leave land to a niece, nephew, or other relative. While children may challenge this under Section 117 of the Succession Act if they feel inadequate provision was made, open family discussions often prevent disputes.
7 I’m not confident my daughter’s marriage is going to last, should I delay transferring the farm to her?
If a parent is worried about the stability of a child’s marriage, caution is warranted. Farm assets can be considered in separation/divorce proceedings. In such cases, delaying transfer may be the safest option, though frank conversations with the child are also advisable.
8 My children have no interest in farming, can I go into partnership with my nephew?
Where no children are interested in farming, partnerships with nephews or nieces are an option. In most cases:
Land and entitlements remain with the owner.Stock and machinery are transferred into the partnership and treated as joint assets.Any eventual transfer of land must be done legally, either during the owner’s lifetime or via a will.9 If my mother dies before transferring the farm to me, will the farm be divided equally between me and my siblings?
If the farm owner dies before making a transfer, the outcome depends on ownership and the presence of a will.
Joint ownership: property passes automatically to the surviving joint owner.Sole ownership with a will: distribution follows the will’s instructions.No will: the estate is divided according to intestacy rules: two-thirds to a surviving spouse and one-third equally among children, or equally among children if no spouse survives.10 My daughter is pushing me to transfer the farm before she turns 35, but what will happen if I wait a few years?
Children under 35 who receive farmland may benefit from Young Trained Farmer Relief on stamp duty. If transfer is delayed until after 35, stamp duty of 1% applies. While this may not seem significant in the short term, on larger farms it can represent a substantial sum.
Disclaimer: The information in this article is intended as a general guide only. While every care is taken to ensure accuracy of information contained in this article, Aisling Meehan, Agricultural Solicitors and Tax Consultants does not accept responsibility for errors or omissions howsoever arising. E-mail aisling@agrisolicitors.ie
Throughout our recent succession series in the Irish Farmers Journal our readers shared a wealth of thoughtful feedback. Among the many questions we received, certain themes came up again and again. Here are the 10 most frequently asked questions.
1 What are the three most important things to think about if I’m planning to transfer my farm to my child?
Parental security: the older generation needs to be financially and emotionally secure after the transfer. This includes having a home, a source of income, and peace of mind.A sustainable plan for the successor: the child taking over must have a resilient, long-term vision for the farm, as well as the flexibility to adapt to future challenges.Fairness to non-farming children: while ‘fair’ doesn’t always mean ‘equal,’ ensuring that all children feel respected and provided for is essential to avoid disputes.2 What are the three most common problems (or mistakes) solicitors see when farms are transferred?
Rushing the process: a successful transfer takes time, often several years of planning.Unnecessary complexity: making overly complicated arrangements can create confusion. Always plan for worst-case scenarios.Poor communication between advisers: farmers need their solicitor, accountant, and agricultural consultant working together. When advice isn’t coordinated, details can fall through the cracks.3 What are your tips to protect the farm if my parents end up in a nursing home? (Fair Deal)
The five-year rule: assets transferred at least five years before entering care are excluded from the means test.Successor farming: if a successor has been actively farming, the farm may qualify for the three-year cap, meaning it is disregarded from the Fair Deal calculation after three years.Cost sharing: when transferring the farm, it is wise to include provisions that the successor will help with care costs for up to five years if needed.4 I’m about to transfer the farm to my child – should I hold back some land for myself as security?
The decision to hold back land depends on individual circumstances. Ideally, parents should retain non-farming assets or secure income from the farm rather than keeping land. If some land is retained, it should remain actively farmed, perhaps through a partnership or joint herd number, so that tax and scheme benefits continue.
5 I’m getting the family farm very soon – should I give my parents a lifetime right of residence in their farmhouse?
When passing on the farmhouse, it’s important to distinguish between:
General right of residence: parents may live in the house, but ownership rests fully with the child. This is the only arrangement compatible with Agricultural Relief from Capital Acquisitions Tax (CAT).Exclusive right of residence: only the parents can live there.Life interest: parents retain ownership until death or surrender of the right, delaying full transfer.
6 My son has no interest in the farm, can I leave the land to my niece who loves farming?
Legally, children have no automatic entitlement to inherit the farm. A parent can leave land to a niece, nephew, or other relative. While children may challenge this under Section 117 of the Succession Act if they feel inadequate provision was made, open family discussions often prevent disputes.
7 I’m not confident my daughter’s marriage is going to last, should I delay transferring the farm to her?
If a parent is worried about the stability of a child’s marriage, caution is warranted. Farm assets can be considered in separation/divorce proceedings. In such cases, delaying transfer may be the safest option, though frank conversations with the child are also advisable.
8 My children have no interest in farming, can I go into partnership with my nephew?
Where no children are interested in farming, partnerships with nephews or nieces are an option. In most cases:
Land and entitlements remain with the owner.Stock and machinery are transferred into the partnership and treated as joint assets.Any eventual transfer of land must be done legally, either during the owner’s lifetime or via a will.9 If my mother dies before transferring the farm to me, will the farm be divided equally between me and my siblings?
If the farm owner dies before making a transfer, the outcome depends on ownership and the presence of a will.
Joint ownership: property passes automatically to the surviving joint owner.Sole ownership with a will: distribution follows the will’s instructions.No will: the estate is divided according to intestacy rules: two-thirds to a surviving spouse and one-third equally among children, or equally among children if no spouse survives.10 My daughter is pushing me to transfer the farm before she turns 35, but what will happen if I wait a few years?
Children under 35 who receive farmland may benefit from Young Trained Farmer Relief on stamp duty. If transfer is delayed until after 35, stamp duty of 1% applies. While this may not seem significant in the short term, on larger farms it can represent a substantial sum.
Disclaimer: The information in this article is intended as a general guide only. While every care is taken to ensure accuracy of information contained in this article, Aisling Meehan, Agricultural Solicitors and Tax Consultants does not accept responsibility for errors or omissions howsoever arising. E-mail aisling@agrisolicitors.ie
SHARING OPTIONS