Trusts in relation to Farms

Protecting future generations

A Trust can be a useful way to protect your family farm for your children and future generations. It is hard to predict which family members will continue working on the farm or how different life events and changing circumstances might impact the viability of the farm e.g. divorce, illness, and death.

Types of Trust

There are different types of trusts, some can be set up during your lifetime, others form part of your Will. We will be able to advise which would suit your circumstances best.

How does a Trust work?

A Trust can be used to manage the assets of the farm such as land, stock and buildings and keep them together where they are managed by carefully appointed trustees. The trustees, if they are chosen well, will be able to use their judgement to make the best decisions for the farm to ensure its survival through the generations.

What are the advantages of a Trust?

As we all know, families can fall out from time to time. Especially when living in proximity and where there is money and emotional attachment involved. Therefore, appointing trustees to make impartial, objective decisions where necessary, can avoid costly conflict which could jeopardise the future of the farm. Trusts can also be a good option in terms of minimising inheritance tax. Where reliefs from inheritance tax apply, such as Agricultural Property Relief, this type of arrangement can be useful in capturing the relief, but not giving full control of your farm to the next generation.

You can find out more about Trusts in our blog here.