The succession plan should offer inheritors equal opportunity, not monetary value, succession facilitator Siân Bushell has said.
The comments came during Macra na Feirme’s succession planning webinar on Thursday night where viewers heard that dividing the farm based on monetary value may not be the most straightforward plan.
Bushell said: “The inheritance should offer all successors equal opportunity in life. You have to look at what people already have and ask were they looked after well in the past be it through education or other avenues.
“If there has to be a monetary payment made to siblings, do it at an early stage and don’t let it hang over you. Get as many parties out of the picture early on while making sure everyone knows what they are getting is fair.”
Line of communication
Bushell also spoke on the value of communication when balancing business and personal life between multiple generations working on the same farm.
“The main issue in succession is communication, farmers and the next generation need to get into the business of talking. Thrash out the ideas and establish a plan that everyone can compromise with. Otherwise some may feel excluded.
“The farm is a business and needs meetings to match this. Establish what’s going well and what needs addressing. These meetings need to be routine in order to keep lines of communication firmly open.”
Advice is available
Also a guest at the webinar was ifac head of tax Declan McEvoy who suggested the only time tax can’t be mitigated in succession planning is when people don’t take the available advice.
“We are lucky in this country to have a suit of reliefs, the only people who can’t mitigate tax is those who don’t take advice. Forgotten issues can be a source of high tax rates in many cases.
“Take the example of farm house transfer. In many cases the house is separate to the farm and is jotted down for transfer at a later date to the land and farm buildings. The house subsequently may not be eligible for tax relief.”
Rudderless successors
A poll posted during the webinar asked viewers about their current position in the succession planning process.
In the case of 54% of viewers, a clear successor has been chosen but no plan is in place.
Read more
Listen: ‘Your will is the backstop when it comes to farm succession’
What do farmers want from a farm retirement scheme?
A retirement scheme based solely on money would be ‘naïve’
The succession plan should offer inheritors equal opportunity, not monetary value, succession facilitator Siân Bushell has said.
The comments came during Macra na Feirme’s succession planning webinar on Thursday night where viewers heard that dividing the farm based on monetary value may not be the most straightforward plan.
Bushell said: “The inheritance should offer all successors equal opportunity in life. You have to look at what people already have and ask were they looked after well in the past be it through education or other avenues.
“If there has to be a monetary payment made to siblings, do it at an early stage and don’t let it hang over you. Get as many parties out of the picture early on while making sure everyone knows what they are getting is fair.”
Line of communication
Bushell also spoke on the value of communication when balancing business and personal life between multiple generations working on the same farm.
“The main issue in succession is communication, farmers and the next generation need to get into the business of talking. Thrash out the ideas and establish a plan that everyone can compromise with. Otherwise some may feel excluded.
“The farm is a business and needs meetings to match this. Establish what’s going well and what needs addressing. These meetings need to be routine in order to keep lines of communication firmly open.”
Advice is available
Also a guest at the webinar was ifac head of tax Declan McEvoy who suggested the only time tax can’t be mitigated in succession planning is when people don’t take the available advice.
“We are lucky in this country to have a suit of reliefs, the only people who can’t mitigate tax is those who don’t take advice. Forgotten issues can be a source of high tax rates in many cases.
“Take the example of farm house transfer. In many cases the house is separate to the farm and is jotted down for transfer at a later date to the land and farm buildings. The house subsequently may not be eligible for tax relief.”
Rudderless successors
A poll posted during the webinar asked viewers about their current position in the succession planning process.
In the case of 54% of viewers, a clear successor has been chosen but no plan is in place.
Read more
Listen: ‘Your will is the backstop when it comes to farm succession’
What do farmers want from a farm retirement scheme?
A retirement scheme based solely on money would be ‘naïve’
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