You may believe it is too early to start succession planning, but the reality is that it is never too early. Life often doesn’t go according plan.
Why should I care?
Illness, injury and even retirement can often take you by surprise. What happens if the farm manager is unexpectedly unable to work for a period of time?
- Is there someone willing and suitably skilled to take on the farm.
- Have you asked your intended successor what their plans for the future are?
- Have you considered how will you finance your retirement.
- How do you ensure everyone gets their fair share? (bearing in mind that fair isn’t necessarily equal?
Don’t leave your legacy vulnerable. Effective planning:
- Gives everyone a voice
- Suitable successors will take over
- Limits financial consequences (e.g. inheritance tax, financial gains tax)
- Ensures the farm can support all concerned
- Reduces stress
- Avoids future family conflict
- Achieve the best outcome for all
In an ideal world, the older generation would discuss their plans for the future of the farm business openly with other members of the family, long before the time when such a conversation becomes essential. Sadly that is often not the case, which can have very serious implications for both family and farm.
NFU Mutual will help you find the answers, with down-to-earth, practical support
In 2013/14, the Farm Business Survey (FBS) began to collect data about the presence
and nature of farm business succession arrangements. Collection of this information will
be ongoing and future publication will be within the annual Farm Accounts in England