What will happen to my farm when I die?
If you are a farmer, planning for the future of your farm after your death might well be one of the hardest decisions you have to make.
However, it is vital that you make a plan for the succession of your farm on death as not addressing the issue now will make it a lot worse for those you leave behind. The biggest part of your plan should be making sure you have an up to date, valid will.
Many farms can attract agricultural relief and business relief which, in some cases, can result in 100% relief from inheritance tax. Putting the right succession plan in place and getting the right advice is vital.
Maximising tax reliefs
The value of many farms is in the land that it owns. With the rate of inheritance tax being 40% it is highly likely that HM Revenue & Customs will be looking to maximise their potential revenue from the value of your estate.
They could argue that your land has development potential and so value it above its agricultural value. Or they could determine that some of the land is not eligible for relief because of how it is used.
In order to avoid unnecessary inheritance tax it is vital that you seek advice to ensure that the structure of your farming business, and the usage of the land, is set up in the most tax efficient manner. This could be the difference between paying no tax and losing 40% to the tax man.
GA’s experienced inheritance tax team is able to perform a full review of your farming business, including the land and buildings, providing you with effective legal advice and opinion on how to ensure you maximise your ability to claim such reliefs.
Who do I leave the farm to?
Many farming families will face this difficult question. It is not always easy to decide how the farm should be inherited because of various competing issues.
Perhaps your spouse isn’t involved in the farming? Or maybe some of your children work on the farm and others don’t?
Whatever the situation, we can help you find the right way to ensure the succession of your farm provides a fair outcome for the whole family. We will take in to account any wishes you might have to ensure that family members involved in the farm will continue to benefit from their hard work, whilst also ensuring that those not involved do not miss out on the inheritance you wish them to have.
If you want to plan for the succession of your farming business, contact our team today for a free initial telephone conversation. Call 01752 203500, email enquiries@GAsolicitors.com or use our online contact form.
