Legal Advice for Inheritance Tax of Agricultural Land

When the time comes to think about the future of your farm you want to know that it will continue to run profitably after you’re gone. Farm inheritance planning is the most important provision any farming family can make to secure their farming business’s ongoing success and future prosperity.

At Rowlinsons, our team of wills, trusts, and estate solicitors can help you effectively plan for the smooth transfer of your family farm to the next generation.

Farm Inheritance Planning Solicitors

Rowlinsons Solicitors is an award-winning law firm in Cheshire. Our dedicated Wills, Trusts and Estate Planning team has, over the years, helped many farming families in Cheshire and across the North successfully plan for the future.

Our expertise earned us the Excellence in Private Client Award from the National Law Society in 2018. Rowlinsons Solicitors was also awarded Highly Commended in the Boutique Private Client Team of the Year category at the British Wills and Probate Awards 2023.

Our team includes some of the most prominent and renowned Wills, Trusts, and Estate Planning Solicitors in Cheshire, many of whom are members of STEP (the Society of Trust and Estate Practitioners) further highlighting our specialism in this complex area of law.

At Rowlinsons, we’re experts at devising comprehensive farm inheritance and estate succession plans and managing all related issues. You’ll receive dedicated legal support from a qualified solicitor from beginning to end, with direct access to them when you need to talk.

If you want effective and practical help to best support your farm inheritance planning, get in touch today.

What is Farm Inheritance Planning?

Farm inheritance planning is the process of considering the best way to arrange your financial and legal affairs when passing your farming business on to the next generation. It includes preparing for the transfer of ownership of the farming business and assets, which may happen during your lifetime or after your death via the will.

For the best results, you should consult your whole family while considering the needs of farming and non-farming family members alike so that everyone is taken care of and your farm can continue to operate successfully.

The Advantages of Planning for the Future of Your Family Farm

You may have worked the land your whole life to build up a thriving business. No doubt you will want to ensure that your loved ones continue to benefit from and improve upon your hard work so you can preserve your family’s wealth and heritage over the long term.

Having a robust plan in place means you can:

• Ensure your farming assets fall into the right hands.
• Provide a hassle-free transfer of assets to your beneficiaries.
• Make future provisions for non-farming family members.
• Pass down treasured family assets through the generations.
• Safeguard against divorce or bankruptcy.
• Avoid the risk of disruption and disputes between family members.
• Benefit from tax relief to best mitigate inheritance tax.

Without an effective plan, you have no control over how your family estate is managed or who benefits after your time.

What’s involved in farm inheritance planning?

The first step in farm inheritance planning is taking the time to fully discuss your plans with your whole family. You’ll want to establish who will be involved in the future running of the farm and make sure that they understand their roles and responsibilities. A comprehensive overview of each individual’s unique situation helps you effectively and fairly structure your estate.

Next, you will need to take a full inventory of the farm by identifying and valuing farm assets.  This allows you to define who owns all machinery and equipment and what you can pass on in your will.

Then, you will want to put the appropriate legal structures in place such as wills, trusts, or family companies, to best protect your assets for the benefit of your entire family.

A valid will gives clear guidance to your executors so that your assets are passed on to your intended beneficiaries and minimises the risk of disputes. Wills and trusts can also reduce the burden of inheritance tax and take advantage of any available business agriculture relief.

You can set up a family company to pay dividends to different family members per their contributions or you may want to place the farm in a trust with your children as beneficiaries.

At Rowlinsons, our estate planning solicitors can prepare your will, tailored to your specific circumstances and plans. We can also help you with setting up trusts or family companies. Get in touch today to find out more.

Inheritance Tax Relief on Agricultural Assets

Certain agricultural land and property can be passed onto your beneficiaries’ inheritance tax-free. The rules for agricultural relief are as follows:

Land and property that qualifies for agricultural relief from inheritance tax:

• Land used to intensively rear animals or grow crops.
• Some agricultural shares and securities
• Farmhouses, farm buildings, and cottages.
• Crops that are growing
• Short rotation coppices
• Land not currently farmed under the crop rotation scheme.
• Land not currently farmed under the habitat protection scheme.
• Stud farms.
• Milk quota value associated with the land.

Land and property assets that are currently excluded from agricultural relief from inheritance tax:

• Farm machinery and equipment.
• Derelict buildings
• Crops that have been harvested.
• Livestock.
• Property that is already under contract for sale.

The team at Rowlinson can advise on how to make the most of agricultural tax relief.

Why choose Rowlinsons as your farm succession planning solicitors?

At Rowlinsons, we understand that every rural and farming business is unique which is why we tailor our service to suit you. Our expert estate planning solicitors can advise on all matters of farm succession planning from drafting wills, creating trusts, and setting up family companies to identifying the best way to structure your estate for inheritance tax.

We’ll help you navigate the complexities of farm inheritance and tax planning so that you can make the best decisions for your family and leave a lasting legacy for farming generations to come.

Contact our Farm Succession Planning Consultants

If you own a farm and want to make sure it is passed on to the next generation, it is crucial to seek the advice of expert farm succession planning solicitors to ensure you minimise the impact of taxes on your assets.

Our expert Lifetime Planning Solicitors in Cheshire provide tailored legal advice to farmers and farm owners in Warrington, Widnes, St Helens, Chester, Northwich, North Wales, and across the UK from our offices in Frodsham and Sutton Weaver about how to plan a tax-effective succession to avoid excessive tax bills.

Call us today for an initial no obligation call or click here for a call back. We also have meeting facilities in North Wales by appointment.