Covid-19 Update: We are continuing to provide our usual services whilst maintaining the safety of clients and colleagues. Read our latest update here.

Complete the form below to ask us a question or make an enquiry. We’ll get back to you via phone or email as soon as possible.

Insights

Farming estate succession planning

Posted on 04th February 2021 in Rural Property & Countryside Matters, Later Life Planning

Posted by

Rachael Morley

Associate and Solicitor
Farming estate succession planning

Succession planning is an essential part of running a family farm business. Effectively planning for the future allows you to protect your assets, safeguard your business, ensure continuity and provide for your family. Succession planning in the farming industry is also vital to the sector's viability as a whole. In this post, we look at some of the key things you need to consider when succession planning for your farming estate.

 

Farming succession planning explained

Succession planning isn't just about planning your retirement but ensuring a smooth transition for those who run the business once you have stepped down, and whoever comes after. You are planning your business legacy, leaving behind your vision and goals for the continued success of the business. Farming in the UK faces difficulty as a result of poor succession planning, an ageing workforce and very few new entrants to the sector. Research conducted by Let's Talk Succession showed that less than half of those interviewed had a succession plan in place.

 

Discussing the future with your family

The first step in succession planning is discussing your plans with the next generation. You should try to include everyone who might be affected in the discussions. It could be a good idea to bring in a specialist adviser at this stage, who can help to explain the best way to move forward and set out all of your options clearly.

 

What to included in the succession plan

There is lots to consider when it comes to what should be included in a comprehensive succession plan. Firstly, you will need to understand and set out the following:

  • How the assets of the farm are owned
  • How each member of the family wishes to benefit from the farm
  • What parties are occupying the building and land on the farm and what the arrangements are
  • What the long-term plans and goals are for the farm
  • What each family member will do to run the farm in the short term and in the future
  • A plan for mentoring or training the future generations, including how you will step back from running the operation
  • Tax considerations

 

Who will own the farm?

An important part of succession planning is making sure that ownership of the farm passes in the way you would like it to. You should ensure that all family members involved in the ownership or running of the farm have valid wills in place to protect the family business.

Furthermore, you may wish to implement a partnership or shareholder agreement. You should be mindful of matters such as marriage or divorce, and you may wish to consider prenuptial agreements to protect the business. Taking these steps should help to ensure the business's ownership ends up in the right hands at the right time.

 

For any further support or guidance on later life planning, or countryside matters, then please contact our expert lawyers.

Contact our legal experts

 


 

Paper plane

 

Get the latest news straight from our legal experts.

Subscribe to our newsletter to recieve current, dedicated, suppport and guidance from our solicitors straight to your inbox, wherever you are.

Company & Industry

Related Insights

Insights

Hybrid Working - Tozers hosted Employment Seminar

Posted on 18th October 2021 in Employment

Working from home has long been a practice permitted by employers, but with the recent and ongoing Covid-19 pandemic making life difficult, it has become a phenomenon that most if not all employers (where possible) have adopted, so as to survive this bleak outbreak.

Posted by

Stephen Jennings

Partner and Solicitor
Insights

Compulsory workplace vaccinations – the jab or the job?

Posted on 18th October 2021 in Employment

Apart from the special case of care workers, employers would in most cases be better advised to encourage, rather than oblige, their workers to be vaccinated.

Posted by

Stephen Jennings

Partner and Solicitor