Wills & Tax Planning for Farmers & Landowners - The Current Position

Introduction

This virtual classroom seminar will explore the importance of a well-drafted will in the context of solutions to the problems currently facing farming with high value farms against the uncertainties of the move to ‘farming for the environment’ and the drop in subsidies. With the slashing of APR (Agricultural Property Relief) and BPR (Business Property Relief) to 50% there is increased focus on succession planning with updated wills at the core of the tax planning.

It will explain in practical terms how farmers are dealing with the current changes, ranging from ‘head in the sand’ to full succession planning, which of course needs the protection of an updated will and associated tax planning. Ironically all the current farming and tax press are prolific in their reporting of the need for succession planning which incorporates the well thought through will.

Such work is very much part of inheritance tax (IHT) and ‘probate’ planning and also the understanding of the farming family’s needs and wishes as translated into tax planning and will protection. The session is suitable for anyone currently acting for farmers and landowners and will provide a useful update on identifying the problems and finding the tax solutions. A large amount of planning post the Autumn 2024 Budget has been lifetime transfers and we must consider their impact on wills.

What You Will Learn

This live and interactive session will cover the following:

• The farming revolution post the 50% APR/BPR move to ‘farming for the environment’, ELMs and the need to review and start all succession planning and wills for the impact of the changes for farming clients. Consideration of £1million at 100% relief
• Protection of the farm business post ‘probate’ as part of will drafting
• Awaiting the results of the farming for environment working party e.g., sale of carbon credits, recording biodiversity net gain, and the power of natural capital
• The considerations around tenancy reform impact and changes
• The risk and power of the farming dispute claim - the need for a strong will file and robust protection through letter of wishes and quality tax planning notes
• The importance of potential Larke Nugus claims and protection planning
• The practical implications of farm intestacy
• Considerations of lifetime gifting with Gifts with Reservation of Benefit (‘GROB’) and failure of Potentially Exempt Transfers (‘PETS’)
• Practical tips in maximising APR and BPR claims, especially with reduced reliefs and the £1million limit
• Recent tax tribunals, e.g. Eva Mary Butler and others and the wedding barn on too many investments
• The power and tax importance of the well drafted partnership agreement and interaction with the will
• The impact of farming agreements e.g., CFAs, JVs, and share farming on will planning
• The understanding of the land capital account in wills and probate
• The Trust Registration rules - partnership property and advantages of registry
• The importance of robust farm accounts that reflect correct farm ownership and protect APR, BPR and business CGT relief claims in terms of will drafting
• High farm values - the increased pressure on farm valuations with impending tax liabilities and low farm profits: the possible sale of the farm pre and post probate
• The interaction of farm development potential, hope value, the case of Foster and ‘fairness’ of proceed distribution within the family succession planning
• Impact on will and the provisions for IHT liabilities post the Autumn Budget, e.g. N Hall and another (as trustees of Carolina Raboni deceased)
• Abrahams (Ingram) and the problems of ‘DIY wills’
• The quirks of nuptial agreements and surviving spouse exemption
• Recent case of undue influence - impact of the farm revolution on some farming members with vested interests

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.