Succession

 

 

Step by Step guide for Successful Succession Planning

 

Dr Mary Curtin is an Assistant Professor in the Department of Accounting of Finance, University of Limerick. Mary graduated with a degree in Law and Accounting. Mary completed her PhD with the Business School and School of Law on the gender asset gap in the agricultural sector. Mary has lectured and tutored on subjects such as Accounting, Auditing and Governance, Land law and Equity and Trusts. Mary farms with her father James in North Cork.

Succession planning is not just about deciding who gets the farm. It is about protecting your family, your livelihood and the future of the land you have built up.
It is important to start early, take it step by step and get the right advice.

 

Step 1: Start the Conversation Early

Ideally, farmers should begin talking about succession planning as soon as possible. It is important to involve your spouse or partner, your children and any other key stakeholders from the start. The discussion should cover who genuinely wants to be involved in the farm’s future, what vision different family members have for the farm (such as possible expansion or diversification), and how to consider and address the needs and expectations of non-farming children. It helps to frame this conversation as a shared family goal rather than a difficult or one-off talk, setting a positive tone for the planning process ahead.

 

Step 2: Clarify Your Own Goals and Needs

Before making decisions about who will take over the farm, take time to think about your own future. Ask yourself if you would like to fully retire or prefer to stay involved in some capacity. Consider what level of income you will need once you step back and where you plan to live, whether that means staying in the farmhouse, building a new dwelling or downsizing. It is also important to balance fairness and equality among your children: think about how you can treat everyone fairly while still keeping the farm as a viable business.

 

Step 3: Gather and Organise Key Information

A strong succession plan starts with having the right information to hand. Collect your most recent farm accounts and valuations and prepare a clear list of all your assets, debts and entitlements including things like the Basic Payment Scheme and environmental scheme participation. Don’t forget to gather any existing wills, life insurance policies, pension details and loan agreements.

 

Step 4: Fair Deal Scheme It is also important to consider the impact of the Fair Deal Scheme (Nursing Home Support Scheme) on farm succession. Under this scheme, up to 7.5% per year of the value of a farm or business asset can be used to pay for nursing home care costs, capped at three years (a maximum of 22.5%). This three‑year cap only applies if a family successor commits to continue running the farm or business for at least six years. Your farm or business must have been actively run by you, your partner or your proposed family successor for at least 3 of the last 5 years. A charge in favour of the HSE will be placed on your business or farm. This charge is removed when your successor’s period of six years has ended and all other conditions have been satisfied. Without succession planning and this commitment, a larger share of the farm might have to go towards care costs.

For these reasons, it is crucial for farm families to make a valid will, understand the legal right share, and get advice on the Fair Deal Scheme to protect both the farm and family harmony.

 

Step 5: Seek Professional Advice

Early professional advice makes the process much smoother and avoids mistakes later. Meet with a solicitor to draft or update your will and get guidance on inheritance laws. Talk to an accountant or tax advisor to understand how to minimise Capital Acquisitions Tax (CAT), Stamp Duty and make the most of Agricultural Relief or Retirement Relief. It is also worthwhile to speak with an agricultural consultant or Teagasc advisor about business planning, herd numbers and scheme requirements.

 

Step 6: Develop a Succession Plan

Once you have gathered information and taken advice, it’s time to set out a clear plan. Decide who will become the successor whether that’s a son, daughter, niece, nephew, or someone outside the family. Agree on a timeline for when and how control and ownership will transfer. Consider phased transfer options, such as entering into a Registered Farm Partnership (RFP) or setting up a limited company. Plan what role retiring farmers will play whether part-time work or mentorship and outline how non-farming heirs will be provided for, such as through life insurance or off-farm assets.

 

Step 7: Put the Plan in Writing

With the family’s agreement, it is essential to make the plan legally binding. Draft or update your will to reflect your wishes. Document formal agreements on any new business arrangements, such as a partnership agreement and prepare transfer documents for land and property. Also outline how financial provisions for each family member will be handled. Writing everything down helps avoid misunderstandings and protects against legal disputes in the future.

 

Step 8: Review and Adapt

Succession planning is not something you do just once. Review your plan every three to five years or sooner if major life events occur like illness, marriage, births or changes in farm policy and tax law. Keep open communication with family members and advisors so your plan stays realistic and relevant. Adjusting the plan as needed ensures the farm’s long-term viability and helps maintain family harmony.

Succession planning is not a one-off legal process, it is an ongoing conversation about your family, your farm and your legacy.

 

By starting early, involving everyone, and getting professional advice, you can:

• Reduce tax liabilities
• Avoid conflict
• Protect the future of your farm
• Allow time for the successor to complete any required agricultural training

 

Advice for the Farmer Taking Over

If you are the next generation stepping into the farm business, it is important to plan ahead too. Completing a recognised agricultural qualification, such as the Green Cert, can bring significant benefits including access to valuable tax reliefs like Young Trained Farmer Stamp Duty Relief and priority in some Department of Agriculture schemes and grants. Make sure to meet with a tax advisor early to understand your entitlements and what records you will need to keep. Beyond paperwork, get involved in day-to-day decision-making as soon as possible: this helps you learn the business side of farming and build confidence to run the farm into the future.

 

Succession Planning Checklist for Irish Farmers

Start early - Tick off each step as you go:

 

Step 1: Start Talking

• Discuss your hopes and plans with your spouse/partner
• Talk openly with your children (farming and non-farming)
• Ask who wants to be involved in the farm’s future
• Agree to keep the conversation going, not a once-off chat

 

Step 2: Clarify Your Own Needs

• Decide what level of involvement you want after retirement
• Work out what income you will need when you step back
• Consider housing needs (stay in farmhouse, build elsewhere)
• Think about “fairness” vs “equality” between farming and non-farming children

 

Step 3: Get Your Information Together

• Up-to-date farm accounts and financial statements
• List of all assets, debts, entitlements, and pensions
• Copies of title deeds and maps
• Any existing will, partnership agreements or life insurance documents

 

Step 4: Talk to Professionals

• Meet your solicitor (check or draft your will)
• Meet your accountant or tax advisor (check CAT, Stamp Duty, Agricultural Relief, Retirement Relief, Fair Deal)
• Meet a Teagasc advisor or private agricultural consultant to look at options like Registered Farm Partnerships
• Consider bringing family members to meetings so everyone understands

 

Step 5: Make a Succession Plan

• Decide who will take over the farm (successor)
• Decide when and how transfer will happen (gradually or all at once)
• Plan roles for retiring farmer(s) (part-time work, advice, housing)
• Plan what to do for non-farming heirs (off-farm assets, insurance)
• Consider forming a Registered Farm Partnership or company if it suits the farm

 

Step 6: Put it in Writing

• Update or write your will
• Draft partnership agreements or company documents if needed
• Complete and sign transfer documents for land and entitlements
• Share written plan with family so everyone knows what is agreed

 

Step 7: Review Regularly

• Revisit your plan every 3-5 years
• Keep family and advisors up to date

 

Questions to Ask Your Solicitor About Farm Succession

 

Your Will and Inheritance

• Have I an up-to-date will?
• If I don’t have a will, what would happen to the farm under intestacy?
• Should my will name one successor or split assets?
• How can I protect the farm as a viable unit, but also treat non-farming children fairly?
• Should I add special clauses (right of residence, conditions, life interest)?
• What if my chosen successor dies before me – what is the fallback?

 

Transferring the Farm

• What legal options do I have: gift, lease, partnership, share farming, limited company?
• What are the steps to transfer ownership of land and entitlements?
• Should I transfer now, gradually or by will?
• How do we document family agreements to avoid disputes later?
• Are there restrictions on transferring land that’s mortgaged or in joint names?

 

Tax and Reliefs (coordinate with accountant too)

• What taxes apply: Capital Acquisitions Tax (CAT), Capital Gains Tax (CGT), Stamp Duty?
• Can my successor claim Agricultural Relief or Consanguinity Relief?
• Do I qualify for Retirement Relief? What are the conditions (e.g., age, active farming)?
• Will transferring now reduce tax compared to leaving the farm in my will?

 

Rights and Housing

• Can I legally keep a right of residence in the farmhouse?
• Can my spouse/partner have a life interest or right of residence too?
• Should we draft a residence agreement to avoid conflict?

 

Protecting Against Disputes

• How do we avoid future disputes between siblings?
• Should we have a family agreement or memorandum of wishes?
• How can we handle situations if the chosen successor leaves farming?

 

Other Legal Points

• Should we register a Registered Farm Partnership or set up a limited company?
• What are the pros and cons of each, legally and for succession?
• Are there legal risks if I keep farming after transferring the farm?
• What paperwork or registrations need updating after transfer (herd number, entitlements, insurance)?

 

Long-term Considerations

• What should I do to prepare in case of incapacity (Enduring Power of Attorney)?
• How often should I review and update my will and farm plan?
• What if government farm schemes change - will it affect my plan?

 

Tip to bring:

• A copy of your current will, title deeds, farm map, family tree, and list of assets/debts.
• Bring your partner/successor to the meeting so everyone hears the advice directly.

When making a will, a farmer should think carefully about including all key parts of the farming business and family assets to avoid confusion later. This usually means clearly listing each parcel of farmland (with folio numbers or maps) and deciding who will inherit them, as well as addressing entitlements under the Basic Payment Scheme. It is also important to cover livestock, machinery, tools and farm vehicles, deciding whether these pass with the land, go to a specific heir or are to be sold. Bank accounts (including farm business accounts, savings and credit union accounts) should be included, along with co‑op shares and any other investments. Farmers should also decide what happens to the farmhouse or second dwellings, including whether a spouse or partner should have a right of residence or life interest. Finally, it is important to state who should receive the residue of the estate (everything left after specific gifts) and to choose trustworthy executors to carry out these wishes. Including funeral wishes and any special provisions can also help avoid family disputes and protect the farm for future.

 

The Succession Planning Advice Grant (SPAG) is a scheme designed to help farmers aged 60 and over with the costs of seeking professional advice on succession planning. This grant specifically covers fees related to succession planning, with the aim of encouraging intergenerational land transfer and addressing generational imbalances in Irish farming. 

 

Other considerations: dying without a will, legal right share and the fair deal scheme.

 

What if I die without a will?

If someone dies intestate, meaning they have no valid will, the Succession Act 1965 sets out strict rules. Where there are children, the surviving spouse is legally entitled to two‑thirds (2/3) of the estate, while the remaining one‑third (1/3) is divided equally among the children. If there are no children, the spouse is entitled to inherit everything. When a person dies testate, that is, with a valid will, they have more flexibility to set out who should inherit. However, the law still protects the surviving spouse through what is known as the legal right share. If the deceased had children, the spouse must receive at least one‑third (1/3) of the estate, regardless of what the will says. If there are no children, the spouse is entitled to at least one‑half (1/2) of the estate. The legal right share ensures a spouse cannot be completely left out of the inheritance.

It is also important to consider the impact of the Fair Deal Scheme (Nursing Home Support Scheme) on farm succession. Under this scheme, up to 7.5% per year of the value of a farm or business asset can be used to pay for nursing home care costs, capped at three years (a maximum of 22.5%). This three‑year cap only applies if a family successor commits to continue running the farm or business for at least six years. Your farm or business must have been actively run by you, your partner or your proposed family successor for at least 3 of the last 5 years. A charge in favour of the HSE will be placed on your business or farm. Without succession planning and this commitment, a larger share of the farm might have to go towards care costs.

For these reasons, it is crucial for farm families to make a valid will, understand the legal right share, and get advice on the Fair Deal Scheme to protect both the farm and family harmony.