If you’re a landowner involved in agriculture or farming, you’re likely passionate about your land and its legacy. Ensuring that your land and its associated assets are passed down to future generations can be a significant concern. Agricultural and farming trusts offer a valuable tool for achieving this goal.
In this article, we’ll explore how these trusts can help you provide for your grandchildren and beyond.
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Free Initial Telephone Discussion
For a free initial discussion on how we can help you deal with the legal implications of creating a Trust, get in touch with us today. We are also experienced in dealing with all aspects of Wills and Probate and we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
Understanding Agricultural and Farming Trusts
An agricultural or farming trust is a legal arrangement that holds and manages agricultural or farming assets on behalf of beneficiaries. By placing your land and associated assets into a trust, you can control how they are managed and distributed to future generations.
Key Benefits of Agricultural and Farming Trusts
- Preservation of the Family Legacy: Trusts can help preserve the family’s connection to the land, ensuring that it remains in the family for generations to come.
- Asset Protection: By transferring your assets to a trust, you can potentially protect them from creditor claims, divorce proceedings, and other potential threats.
- Tax Efficiency: Depending on the specific structure of the trust, it may offer potential tax advantages, such as reducing inheritance tax liabilities.
- Succession Planning: Trusts can help facilitate a smooth transition of ownership and management of the agricultural or farming business to future generations.
- Flexibility: Agricultural and farming trusts can be tailored to meet your specific needs and goals, providing flexibility in terms of asset distribution and management.
Types of Agricultural and Farming Trusts
Several types of agricultural and farming trusts can be considered, each with its own advantages and disadvantages:
- Bare Trust: A bare trust is a simple arrangement where the trustee holds the assets for the benefit of the beneficiaries but has no discretion over their management.
- Discretionary Trust: A discretionary trust grants the trustee broad powers to manage and distribute the trust’s assets, allowing for flexibility in providing for future generations.
- Accumulation and Maintenance Trust: This type of trust allows the trustee to accumulate income and capital for the benefit of the beneficiaries, potentially delaying the need for asset distribution.
Important Considerations
- Trust Deed: A well-drafted trust deed is crucial to outline the terms of the trust, including the beneficiaries, trustees, and management powers.
- Succession Planning: Consider how you want to transition the management of the trust and the agricultural or farming business to future generations.
- Tax Implications: Be aware of the potential tax implications of setting up an agricultural or farming trust. Consult with a tax professional for guidance.
- Professional Advice: Seeking professional legal advice is essential to ensure that the trust is structured effectively and meets your specific goals.
Conclusion
Agricultural and farming trusts offer a valuable tool for providing for your grandchildren and beyond. By understanding the different types of trusts and their benefits, you can make informed decisions about how to protect your family’s legacy and ensure the continued success of your agricultural or farming business.
How we can help
We have a proven track-record of helping clients create Trusts. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact Our Wills and Probate Solicitors
It is important for you to be well informed about the issues and possible implications of creating a Trust. However, expert legal support is crucial in terms of ensuring your wishes are met as you would want them to be.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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