Planning for the smooth transfer of the family farm (The challenge: Access to legal rights and status, Ireland)
There is no magic formula to guarantee a successful farm transfer from one generation to the next, but by planning ahead and putting a succession plan in place major pitfalls can be avoided. Legal, agricultural and financial advice should be sought coupled with family discussion, to ensure a fair outcome can be reached.
There are a number of complex issues to be addressed in a family farm transfer, for example.
• Continuation of the farm business.
• Financial independence of the owners.
• Provision for other family members.
• Minimisation of taxes.
The importance of family discussion.
Family involvement in planning for succession is essential with open and honest communication acknowledged as key to a successful outcome. The family discussion should take place early, with the aim to have all the people who will be involved, so that future misunderstandings can be avoided and those involved will know what to expect.
Obvious topics for discussion at this stage would include the following.
• What is the income generating capacity of the farm?
• Starting the succession conversation within the family.
• Income security for parents after retirement.
• Other sibling’s requirements.
Expert Advice
• Consult with agricultural, legal and financial advisers, in relation to your pension and other entitlements and to avoid unnecessary taxation expenses.
• A Will is a legal document ensuring that your property passes to the person of your choice without unnecessary expense or family conflict.
• Careful planning with your legal, financial, agricultural advisers and having the important “round the kitchen table discussion” involving all the family, provides the basis for a successful farm transfer.
NEWBIE New Entrant netWork: Business models for Innovation, entrepreneurship and resilience in
European agriculture (2 of 2)
Ongoing | 2018-2021
European agriculture (2 of 2)
- Main funding source
- Horizon 2020 (EU Research and Innovation Programme)
- Geographical location
- Netherlands