Future Tenancy Rights

F

FirstaidKit

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Hi all, I have an only child who is now in her twenties. I have a small farm; and as I understand it, as part of the inheritance agricultural relief, I must give it all to her, house and land ( as per the Capital Acquisitions Tax Consolidation Act 2003 ). My intention is to live in a “granny” flat on the farm. My question is this, if I do sign it all over, in the event of her marrying a “ne’er-do-well” and there was some type of break up in the future, I assume I would then have no tenancy rights?
 
Hi,

I think you need to do a bit of planning with your solicitor & a tax professional. A consultation for a couple thousand might save you tens of thousands. CAT is charged at 33%.

One solution I can see, the granny flat & it's garden could be put into a separate folio and you retain ownership of it until you die. Make sure to establish rights of way for yourself with the granny flat. You can then transfer the rest of the farm to your daughter. For agricultural relief you don't have transfer the original home to her either, which would help her qualify for the relief. You might want to do this in stages,1) build granny flat 2) transfer land & farming assets (get the agricultural relief) & finally 3) transfer the house to her or consider 50% stake in the house and you own it jointly as 'joint tenants'. I noticed you didn't mention your daughters mother but her housing security may have to be considered.

You might also want to explore a farming partnership arrangement, which I know nothing about, but might allay some of your fears over divorce & a 'ne'er do well'. Your daughter could get % of the income while you maintain some or all of the ownership of the asset. There are some tax beneficial arrangements from long leases of the land, that you should research as well.
Best of luck to you & your daughter.
 
And don't assume issues will only arise as a result of your daughter's relationships.
People change over time. Priority is to always ensure you have a home.
 
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