Pass assets tax-efficiently
Gift/inheritance tax on cash, shares and investment property applies at 33% on any value received in excess of the threshold (€335,000 for a child from a parent: CATCA 2003 Sch 2).
For example a rental property is taxed at 33% but an accommodation business (e.g., a hotel or B & B) is taxed at 3.3% subject to meeting the conditions.
To qualify for the effective 3.3% rate the recipient of farming property must be a “farmer”, i.e., 80% or more of his assets (including the assets he will receive) must consist of farming assets. He must also be an active farmer or rent the land to such a farmer.
Cash can count as a farming asset (3.3% rate) if is is passed subject to a condition that it be invested in agricultural property (and remain as such for six years).