If you’re a landowner involved in agriculture or farming, setting up an agricultural and farming trust can be a valuable strategy to protect your assets, plan for the future, and potentially reduce tax liabilities.
In this article, we’ll explore the specific ways in which an agricultural and farming trust can benefit your farm.
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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.
Protecting Your Assets
- Creditor Protection: A trust can help shield your agricultural assets from potential creditors, such as suppliers or lenders. This can be particularly important if your business faces financial challenges.
- Divorce Protection: If you’re married or in a civil partnership, a trust can help protect your agricultural assets from being divided in the event of a divorce or dissolution.
- Succession Planning: By placing your assets in a trust, you can control how they are distributed to your heirs, helping to ensure that your farming business remains in the family.
Tax Efficiency
- Inheritance Tax (IHT) Mitigation: Depending on the specific structure of the trust, it may offer potential tax advantages, such as reducing inheritance tax liabilities. This can be particularly beneficial for larger estates.
- Capital Gains Tax (CGT) Deferral: In certain circumstances, transferring assets to a trust can defer capital gains tax liabilities. This can be helpful if you need to sell assets for financial reasons.
- Business Property Relief (BPR): If your agricultural or farming business qualifies for business property relief, placing assets in a trust can help protect them from inheritance tax.
Business Continuity
- Succession Planning: A trust can provide a framework for planning the future of your farming business, ensuring that it remains in the family and continues to operate successfully.
- Management Flexibility: A trust can give you flexibility in managing your farming business, allowing you to appoint trustees who can make decisions on your behalf or on behalf of future generations.
- Asset Preservation: A trust can help preserve the value of your agricultural assets over time, ensuring that your farming business remains viable and profitable.
Other Benefits
- Privacy: A trust can provide privacy by keeping your personal affairs confidential.
- Flexibility: The terms of a trust can be tailored to meet your specific needs and goals, allowing you to customize the arrangement to suit your circumstances.
Choosing the Right Trust
The type of agricultural and farming trust that is most suitable for you will depend on your individual circumstances and goals. Common options include:
- Bare Trust: 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 trust that grants the trustee broad powers to manage and distribute the trust’s assets, allowing for flexibility in meeting the needs of beneficiaries.
- Accumulation and Maintenance Trust: A trust that allows the trustee to accumulate income and capital for the benefit of the beneficiaries, potentially delaying the need for asset distribution.
Conclusion
An agricultural and farming trust can offer a range of benefits for landowners, including asset protection, tax efficiency, business continuity, and flexibility. By understanding the potential advantages and carefully considering your specific needs, you can determine whether a trust is the right choice for your farm.
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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