A recent survey by Farmers Weekly and NFU Mutual found that more than 60% of UK farming families do not have a succession plan. The reasons for this include lack of communication, a desire to avoid family conflict, the owner’s reluctance to retire and the fact that the business can only support one successor.
In our experience it is very important to address this problem and communicate with all parties involved. An Inheritance Tax Review is a good starting point for this process. This establishes exactly what assets are owned, who owns them and what they are worth. Based on this information it is possible to decide the best way to pass assets on to the next generation taking into account the tax, legal and personal implications. This can save substantial tax liabilities but more importantly avoid potential conflict within the family.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.