Agricultural estate and succession planning solicitors

Navigating the complexities of land ownership, farming, succession and tax planning for agricultural estates.

There are unique issues faced by farming families and rural landowners when it comes to succession and estate planning.

With high land values but increasingly difficult farming conditions and costs associated with running the estate, it is no wonder that around 60% of families in rural settings have not made sufficient provision. In many cases, planning is put on the back burner because the day-to-day farming and land management activity is all-consuming.

Unfortunately, the result of this lack of planning, in many cases, is family dispute and considerable legal expense; perhaps more than we find in any other sector. For farming families, this can be because some children are choosing to work the farm whilst others have a chosen a different career path away from agriculture. It may be because there is a change in circumstances within the family such as a divorce or the death of a business partner. Naturally, families want to make sure all children are treated fairly whilst ensuring the farm is kept together.

Where families have inherited property and land through generations, disruption can come through disputes between trustees, spouses of family members and difficulties over maintenance of large buildings.

Problems over tenancies including Farm Business Tenancies, employment disputes; land diversification, heritage assets and regulatory issues can also be part of the need for our clients.

For agricultural estates, no two sets of circumstances are the same, and so no planning strategy is the same. Instead, the agricultural estates planning team will help you find a bespoke solution suited to your needs, planning for the succession of the land and farm whilst mitigating the impact of inheritance tax, capital gains tax, stamp duty land tax and income tax.

Frequently asked questions on agricultural estates

I am not sure if my partnership deed is still fit for purpose. Can you help with this advice as well?

Many farms and landowning businesses don’t have partnership deeds in place.

We can help the business owners navigate this through careful planning.
Can I protect the farm as an entity in case of disputes between my children or other family members?

Estate planning by will often includes the use of trusts to protect against dispute or the potential for the farm and land to be split up. It is essential here to give thought to who should act as executors and trustees and if they should be independent of the beneficiaries; such a position requires a great deal of trust, and we can advise on who may be suitable and the possibilities of appointing a professional executor/trustee.
What happens if I become mentally or physically incapable of running the farm? Can a Lasting Power of Attorney help?

For more information about LPAs please see that page of our website. It is possible also to make a specific LPA to appoint the person(s) who you want to make business decisions about the farm and to give them guidance as attorneys in the document.
How do I ensure that my property qualifies for the maximum available Inheritance Tax reliefs?

Whilst most cases turn on the facts, when it comes to farm property and the type of farming activity undertaken it is worth bearing in mind a few golden rules. In estates we have to demonstrate that the deceased was engaged in the farming activity, even if this was latterly in relation to paperwork.

If the farming business holds large reserves of cash (particularly for a long period of time) it is essential to have valid reasons for this as otherwise it can result in a loss of tax relief with HMRC arguing that it is more asset holding than asset farmed.

Ensure you have advice on grazing licences and tenancies on the land as this can affect the likelihood of tax relief available on the land.

Likewise be careful with how farm buildings are let (to farm workers is ideal) and bear in mind the character appropriate test if your farmhouse is large in comparison to the farmland.

Engage a good land agent to prepare valuations. If there is any argument with HMRC they will help in fighting your corner.

For large landed estates that contain valuable heritage items, buildings or land that have the potential to be of national interest; you should consider whether to claim conditional exemption. This defers inheritance tax on valuable assets where it would otherwise be difficult to raise funds to pay the tax on them. Certain items can also be used to settle inheritance tax via the Acceptance in Lieu regime, which provides a bonus tax credit.

All of this can be achieved with careful estate planning, having robust wills in place and taking advantage of any other structures, be they trusts, partnerships or companies, to ensure that inheritance tax is kept to a minimum. We are able to assist with all of these, tailoring the advice to the circumstances of the client.
How do I deal with the estate of a landowner who has died?

The probate process for agricultural estates can be complicated given the nature of the assets that need to be valued, but they are also an opportunity to carry out some estate planning for the next generation. We can be on hand to guide you through the complex probate procedure, working with land agents to carry out the process as swiftly as possible, whilst taking advantage of the opportunities from a tax planning point of view.
Can you assist with the sale or purchase of agricultural land?

We have a dedicated property team who have experience in selling and purchasing agricultural land, whether it be selling the entirety of the property or selling parcels of land. We can provide associated tax advice relating to capital gains tax and stamp duty land tax during the transaction as well to ensure you get the most out of the sale/purchase.
Can you help if there is a dispute relating to the estate?

Litigation can be a particularly stressful challenge that can result in considerable legal expense. We advise landowners, executors, beneficiaries and trustees on a multitude of disputes, whether they are related to land or succession.