Wills & Inheritance

Where a farming business is the sole or principal asset in a person’s estate it is essential to have specialist legal advice on various aspects of passing this asset to the next generation.

 
 
Many farmers put off making a Will because they do not know how to deal with the issues and also sometimes because of conflict between spouses; it is not unusual for a husband to want to give the farm to the farming son while the wife wants to see the children treated equally. The use of Trusts can go some way, and occasionally the whole way in solving these issues. In the case where a perfect solution cannot be found a Will which is 90% right is better than no Will at all.
The agricultural community is unique in its thinking, hardly surprising bearing in mind that until recently a child would be born on the farm, be expected to work on it for a low wage, eventually to take a stake in the business and then for that business to support his parents until their death.  
 
Our experience of dealing with farmers enables us to have an insight into the farmer’s psyche, to understand the issues involved and to present solutions. This cannot be underestimated as it cannot be learned from textbooks.
 
HM Revenue and Customs admits that Agricultural Property Relief on farmhouses is the most contentious area in the whole Inheritance Tax regime and one which they always examine carefully making this area a potential minefield.  At Berwins we can, of course, advise you on the most tax efficient way to pass assets to the next generation. The tax consequences of getting it wrong are great and may well involve the sale of subsequent assets which in turn results in diminished profits and a downward spiral. Even in those cases where Agricultural Property Relief is available on the farmhouse it is only available on the agricultural value of the farmhouse  – a fact of which many farmers are unaware – and hence significant Inheritance Tax may be payable. If clients are aware of this it will at least give them or their children the opportunity to plan ahead.
 
We can also help, by use of specialist trusts, provide flexibility to enable  the next generation meet and manage  changing circumstances.
 
 
 
In the first instance please contact:
Gareth Marland GarethMarland@Berwin.co.uk  01423 542770 , John Barrett JohnBarrett@Berwin.co.uk  01423 850302 , or through our enquiries page.