Farm Transfers Solicitors
Social and economic changes in Ireland in recent times have resulted in more farm transfers taking place during an owner’s lifetime rather than on the death of an owner. It is a very personal decision, and every family has a different set of circumstances. It is always better to have a plan in place which your solicitor can help you with. By not having one, it can be difficult if the transfer is unplanned, through illness for example.
There are a number of complex issues involved so apart from your solicitor’s help, communication and family involvement in planning for succession is essential. Issues to be addressed usually include;
- The family home is normally inseparable from the business.
- A number of family members/ siblings/ children to be catered for fairly
- If the transfer is during the owner’s lifetime, the owner will require an income, as well as the recipient depending on the circumstances.
Other questions you may need to ask yourself if transferring a farm are - if there is a potential
successor do they have the skills, abilities, knowledge and desire to successfully operate a sophisticated farm business in today’s agricultural economy? If there is no successor, what are the options? Is selling part or all of the farm assets an option?
If a farm is to be transferred to you, you may have to pay some tax. One of these taxes is stamp duty. Young Trained Farmers can avail of an exemption from stamp duty on transfers to them before the 31st December 2021 (this date has been extended previously and may be extended again). In order for a young trained farmer to benefit from this exemption, there are a number of criteria to be met. If the farm is transferred as a gift, Capital Acquisitions Tax applies. There are schemes available for farm transfers. The Succession Farm Partnership Scheme effectively gives a farmer and their successor a tax incentive where the farmer and successor enter an approved partnership which culminates in the transfer of at least 80% of the farm assets to the successor.
Farm transfers may not always involve family members, you can choose to transfer entitlements to another farmer. Entitlements are a monetary asset and under the Basic Payment Scheme they can be transferred with or without land. Basic Payment Scheme Entitlements may only be transferred to an active farmer in the same member state, except in the case of inheritance.
The speed of the transaction, coupled with the transparency of the proceedings I found excellent. Everything was explained to me and I never had to chase anything, James was doing all the chasing on my behalf. Communication is key in these matters, it was great getting updates as the transaction progressed and knowing what was going on in the background. I felt everything was dealt with in a very timely fashion. I was delighted to be able to talk with James by email and phone, it was very convenient for me, and especially in these covid times, it made the whole transaction safer. I have already recommended James to other family members!
Friendly, easy to talk to, professional support from start to finish. The service was exceptional, communication was timely and never overbearing. Everything was explained clearly along with expected timelines for completion. The team went above and beyond to sort out any issues that may have arisen during the process. Overall, very satisfied with the service.
Shanahan O’Sullivan Legal were a pleasure to deal with. James kept us up to date regularly and he communicated every step of the sales process very well. We found the whole interaction very positive and were put at ease especially with covid19 in the background. Highly recommended and no hesitation in engaging their services again.
Other Transfer Tips
Other useful tips to keep in mind when engaging in a farm transfer include;
- Completing a financial analysis of the past and present farm business along with some financial projections
- Considering holding a family business meeting to give everyone an opportunity to voice
their interests and concerns, providing copies of a plan to family members may even help to create an atmosphere of openness.
- Preparing a legal will early to provide guidance on how the estate will be divided
- Considering the tax implications.
It is advisable to consult your farm transfer solicitor at an early stage to discuss your plans so that you can be well informed of your options. Your convenience is important to us and we aim to minimise the amount of time you have to spend on the process. We offer video calls to save you from travelling to meet us and you can meet us at times convenient to you. When documents need to be signed we can come to meet you at your home.
Farm Transfers Solicitors
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“Call +353 61 513113 or your local office or complete this Short Enquiry (no cost or obligation)”