Planning & Taxes
Every family and farm transfer is unique. However, from working with farm families and farm transfers over the years I have learned that there are common factors and advice that is applicable to all families. Here are basic tips on how to implement a successful succession plan to ensure that the transition takes place smoothly.
- Early planning is essential.
- Make a will or review your existing will.
- Make appointments with professionals as early as possible, such as your accountant and solicitor.
- Involve all your children in the transfer process and communicate to them the final plan for distribution and transfer of assets.
- Be aware of the five-year ‘look back’ rule in relation to applying for State support from the Health Service Executive in relation to the Fair Deal Scheme.
- · Decide on a date that the succession plan will be implemented.
- · Consideration should also be given to forming a partnership with the proposed successor.
- · Discuss the tax implications with a tax consultant before you put any pen to paper. Ensure you know how much it will cost you.
- · Do address the issue of fair (equitable) versus equal division of the farm early in the process, especially if there are off-farm family members involved.
Capital Gains Tax (CGT)
Capital Acquisitions Tax (CAT)
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