Now is the time for farming families to organise their affairs

The 30^th October 2024 was an important day, not just for the changes made to the tax regime, but it was also a catalyst for those difficult conversations surrounding succession planning, which may otherwise have been left unspoken. There is no better time than now for farming families and landowners to organise their affairs, or at least, review their assets. Unfortunately, it may be too late for those who are elderly, sick or incapacitated to put any significant plans in place but for the majority, there is an opportunity to evaluate their position and seek professional advice with a view to mitigating the amount of inheritance tax payable.

The starting point is to understand who owns what. That may sound like a simple statement, but you’d be surprised to learn how often a property’s title isn’t where a client believes it to be. This may be because the legal title hasn’t been updated following the death of a family member, or a partner has left a partnership, and their name has not been removed. Sometimes a title may show the correct names, but there is uncertainty about whether the land is held as an individual or partnership asset.

If land remains unregistered, this implies that the legal ownership hasn’t been updated for over 25 years. If you’re unsure where the deeds are held, this could cause holdups when transferring property. If property has previously or is still held as security for outstanding debt or an overdraft, the deeds may be held by your lender. Ensuring you know where your deeds are will save stress and hassle if you wish to implement any property transfers quickly.  

It’s important to understand if there are any restrictions or hurdles to overcome before completing a property transfer. If land is held as security for debt, it’s likely there will be a restriction prohibiting the property from being transferred without lenders consent. Similarly, if land is subject to an Option or Overage Agreement where there is to be a change of ownership, an incoming owner will usually be required to covenant with the beneficiary that they will comply with the terms going forward. 

So, it’s important to review your assets from time to time. Doing so will assist those advising you to ensure that their advice reflects reality and head off any potential delays or complications. There is no better time than now to review your assets and seek professional advice. Please do not wait until April 2026 to put plans into action as it may not be a straight furrow.