Farms & wills: Putting a farm in a will

Ensuring your farm is properly accounted for in your will is essential for securing its future and providing clarity for the next generation.

Without a well-structured will, agricultural estates may be subject to intestacy rules, inheritance tax liabilities, or family disputes, potentially putting the farm at risk.

By including your farm in your will and considering succession planning, you can ensure a smooth transfer of ownership, protect your assets, and maximise tax reliefs such as Agricultural Property Relief (APR). Seeking expert legal advice ensures your wishes are clearly documented and your farming legacy is safeguarded for the future.

Why put your farm in your will?

Including your farm in your will is crucial for ensuring that the property, assets, and business operations are passed on according to your wishes. Without a clear plan, the farm may face complications during the probate process, causing delays, legal disputes, and unnecessary costs. A carefully crafted will ensures that your farming legacy is preserved and that your loved ones inherit the land without the risk of conflict or financial hardship.

Avoid disputes and preserve your legacy

When it comes to passing on a farm, the stakes are high. Without a legally binding will, your assets could be distributed according to intestacy laws, which may not reflect your wishes or the needs of your family. This could lead to disagreements between family members, possible legal battles, and even the sale of the farm to settle any disputes. By including your farm in your will, you can ensure that your heirs inherit the property as you intended, avoiding these risks and securing your legacy.

How farm assets should be included in your will

Your will should address not only the physical land but also any agricultural assets, such as livestock, machinery, buildings, and equipment. Additionally, if your farm is part of a business, your will should clearly outline how the business should be managed or divided among heirs. Succession planning is key, as it ensures the smooth transition of ownership and control to the next generation while safeguarding the farm’s long-term viability.

Farm succession and estate planning

Incorporating the farm into your will is often part of a broader farm succession plan. Farm succession planning ensures that the farm is passed on in a tax-efficient manner and that future generations are prepared to take over. Your will should outline who will take on the responsibility of managing the farm, what responsibilities each heir will have, and how the farm will continue to be operated. Consideration of tax reliefs, like agricultural property relief, will help reduce inheritance tax and other potential burdens.