Inheritance disputes within agricultural families may arise due to a multitude of factors. A prevalent factor contributing to this issue is the inadequate execution or revision of estate planning documents. In the event of the demise of the primary figure in a family enterprise lacking a legally recognised Will, trust, or succession strategy delineating the distribution of assets among inheritors, interfamily dynamics may swiftly deteriorate into a state of conflict.
Nevertheless, it is noteworthy that certain conflicts pertaining to inheritance may emerge prior to the demise of the business proprietor. In fact, instances have been documented wherein individuals from the same family have initiated legal proceedings against their surviving relatives due to reneging on commitments to bequeath the agricultural enterprises to them as part of their rightful inheritance. Frequently, these individuals within the family have made financial sacrifices and dedicated significant portions of their lives to labouring in the business, enduring extended work hours and receiving meagre compensation, all with the expectation that they will ultimately be granted ownership rights. In this article, Farming Family Disputes, we take a look at the types of disputes that might be involved.
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Is it possible to minimise or even avoid family disputes?
Although it may not always be feasible to completely prevent the occurrence of an inheritance dispute, there are measures that can be implemented to mitigate the likelihood of such conflicts. For example, the occurrence of conflicts can frequently be mitigated if all members of a family engage in effective communication, articulating their desires explicitly, and promptly addressing and resolving any differences.
For those who perform the roles of parent or adult child within a farming family business, it is imperative to provide appropriate documentation, such as a partnership agreement and Will, in order to safeguard one’s place within the business.
In the event that the necessary documentation has not been established, individuals who are adult children and possess concerns over their prospective inheritance may engage in open dialogue with their family members and explore the possibility of incorporating such concerns into the Wills of other individuals. In the event of encountering resistance, it is advisable to consult with legal professionals regarding the pursuit of a claim to register an interest in land that has been subject to all your hard work.
What are the common causes of an inheritance dispute?
Beneficiaries who didn’t receive what they were expecting in a Will
The majority of agricultural disputes arising when a family member dies are precipitated by one party failing to receive what was expected or had been promised. It can frequently take years and entail substantial financial investment to resolve these extensive claims. It is possible for objections to the Will’s validity to be raised, which could lead to the Will being nullified.
Financial provision may also be the subject of a claim, even in the case of a valid Will that neglects to provide for a spouse, child, or dependent. This may lead to an unintended beneficiary inheriting a portion of the property or estate, or it may be sold for the purpose of obtaining a lump sum payment.
An alternative scenario involves a petition to completely exclude an asset from the estate, such as when it was betrothed to another individual. A claim must satisfy a multitude of legal tests and prerequisites in order to be deemed successful. A successful claim may cause the property or a portion of it to pass beyond the scope of the provisions outlined in the Will or intestacy rules.
The consequences of marrying again
Many people are unaware that a marriage nullifies any prior Wills. Following a divorce, it is not unusual for a farmer to draft a Will designating the farm to one or more of their offspring in the event of their demise. A number of years later, they might remarry after meeting a new partner. The majority of individuals will believe, “Since I have already made a Will and the farm is bequeathed to my children, there is no need for me to broach that delicate subject with my new partner.” However, that prior Will is revoked upon marriage.
As a consequence, the bequest will be governed by the principles of intestate succession. The aforementioned regulations are the statutory principles that dictate the allocation of an estate in the absence of a valid Will. Due to the fact that the intestacy rules favour a spouse over one’s children, the farm does not always transfer exclusively to the children of the deceased, as was originally intended. Disputes between the stepparent and the offspring of the deceased occur frequently.
Unmarried partners
The widespread acceptance of common law marriage can frequently cause dispute within agricultural families. For instance, your son or daughter might begin living with their fiancé or girlfriend after they begin working on the farm. Although they may have offspring, the couple never weds. Although it is understandable that the family might be relieved that they do not have to file for divorce should their relationship sadly fail, such assumptions should be avoided. An individual may potentially attain an interest in a property by means of an investment of money or “money worth” in said property. In such a case, they may compel the sale of the asset upon the dissolution of the relationship or their partner’s demise.
A dispute of this nature might require the farm to pay a significant sum to an individual who is not even considered a participant in the agricultural enterprise. In order to mitigate the potential disruption and anxiety that may ensue, it is highly advised that the child and their companion enter into a cohabitation agreement that encompasses provisions not only for the dissolution of their relationship but also in the event of their demise.
What exactly is propriety estoppel?
A legal principle frequently encountered in the agricultural sector, proprietary estoppel prohibits an individual from reneging on a commitment to convey property or another benefit to a third party. It enables individuals to assert an equitable claim that the promises ought to be fulfilled in the event that the party making the promise fails to meet their end of the obligation.
In order to establish liability for a lawsuit based on proprietary estoppel, the plaintiff must not only demonstrate that the promisor breached a legally binding agreement upon which they relied in good faith, but also that the promisee has suffered harm as a direct consequence of the breach.
In support of establishing the existence of a promise to inherit agricultural land or a business, written documents and/or oral testimony may be used as evidence.
Contracts or agreements, letters, emails, text messages, and other forms of written communication can constitute written documents. In contrast, witness testimony comprises testimonies from individuals intimate to both parties, who may be required to provide live evidence in court and can substantiate claims regarding assurances exchanged between the parties. Furthermore, any additional correspondence exchanged between the involved parties throughout the legal proceedings may be admitted as evidence in the event that the case progresses to trial.
Additionally, it is critical that claimants seeking redress under proprietary estoppel are able to furnish comprehensive details regarding their circumstances and the manner in which they have been harmed as a result of the promise’s withdrawal.
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Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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