Succession planning for farming families

Succession planning is a critical issue for families with farming and agricultural businesses – particularly where a business has been in the family for generations. We work with our clients to put in place robust plans that will ensure the future success of the business, and that accounts for the varying interests of family members or those with a stake in the business.

We understand the nature of modern farming businesses and the often diverse nature of their operations. Every farming business is different and will require a tailored approach. 

Considerations will include:

• The potential exposure to Inheritance Tax and how lifetime gifts or changes to the structure of the business can help mitigate the impact. Also, the potential to benefit from inheritance tax reliefs including the Agricultural Property Relief and Business Property Relief.
• Will drafting to ensure that you have a will that works for you and reflects the needs of your family and business. In the case of farmers and landowners, we appreciate the importance of a will in ensuring that valuable land and business assets pass seamlessly on to the next generation.
• We can manage estate administration, dealing with all aspects to ensure that the estate can be wound up in a timely manner and tax efficiently, causing minimum disruption for the businesses and individuals involved. We can work with you to negotiate with HMRC on the availability of Agricultural
• Property Relief and Business Property Relief.
  Advising on Power of Attorney and capacity related issues, including in relation to business owners who are no longer able to take such an active role in the business due to a decline in health and mental capacity.
• We advise farmers, landed estates and rural business owners on all aspects of lifetime tax and estate planning. We will work with you, your accountant, land agent and financial adviser to ensure that a succession plan can be implemented that fits in with your long-term business strategy and works for you and your family.
  
  Our experience includes:
• Advising the executors of a valuable estate comprising several different property and business elements (both trading and investments activities) on all aspects of the administration of the estate, including securing Business Property Relief on the non-trading/investment elements of the business.
• Advising a rural business on the review and amendment of the shareholders agreement and working with their accountant and financial adviser to implement insurance backed cross-option agreements to ensure the succession of the business in the event of the death of a shareholder. In the same case also acting for the shareholders in relation to the preparation of their wills to ensure the wills were tax efficient and consistent with the shareholders agreement.
• Advising a farming couple who own a large farm, commercial properties and residential lets on the drafting of their complex wills to ensure fairness in the distribution of their estate between their farming and non-farming children.