Agriculture plays a key role in our economy. And farming is unlike other businesses. French law offers special protection to farmers who face some difficult questions when the time comes to transfer ownership.
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What to do before the transmission of your farming business?
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An assessment is necessary before considering the transmission of the farm. French farmers may use the latest technology, but farming in France is still very often a family operation. As a result, the human factor is especially important, particularly when the farm changes hands.
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Many issues need to be addressed:
- Who will follow? A member of the family ? A stranger ?
- How to evaluate it?
- What should we keep?
- What taxes should be paid?
- How long to go ahead?
- Which person to consult on these subjects very important for the survival of the farm, the retirement of the farmer and the good management of the family patrimony?
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The notary is there to accompany you in this operation, sometimes long and complex. Some solutions require time to ensure transmission under proper legal and tax conditions.
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What steps should be taken?
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No detail should be overlooked: retirement, taxation, family balance, compliance with estate rules, assignment of leases. Thus, there are many administrative, legal and tax procedures that the farmer needs. It may be necessary to form a society.
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Indeed, the incorporation of a holding facilitates its transmission, in particular by separating personal assets from professional assets.
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It will also be necessary to study the means of transmission, for example a donation or a donation-sharing, to set up a financing, aids to the installation, study the fiscal impact, etc ....
Notaires and the authentic instruments they are authorised to prepare will provide you with the legal certainty you need. With their knowledge of the laws governing family matters and business transfers, they can provide a comprehensive perspective on your estate.
Consult your notaire today. It’s never too early to find out.
