Lasting Powers of Attorney: A vital part of succession planning for farmers

Farming families have had a particularly difficult period during the Covid-19 pandemic, facing increased demand from consumers with limited time and resources at their disposal. Farming is an already demanding occupation with heavy machinery, livestock, dangerous chemicals, silos, and slurry pits as daily hazards encountered as part of running the business. With so much relying on the physical health and capability of key individuals, having a contingency plan in place in case something goes wrong is a must. Lynne Smith, Private Client Specialist and part of the agricultural law team at Pearsons & Ward Solicitors in Malton* advises that making a Lasting Power of Attorney (LPA) should be a vital part of business succession planning for farm owners, who are at increased risk of becoming physically or mentally incapacitated at any time. An LPA is…

Wills and how to protect your wealth

What is a trust? A trust is a legal arrangement where individuals are chosen (known as Trustees) to look after assets for the chosen beneficiaries.  Trusts can take effect during a person’s lifetime or alternatively, they can be incorporated into Wills which take effect on death.  This article focuses on Will Trusts.   Circumstances where a Will Trust would be beneficial Most of us are unaware of the various ways in which setting up a Trust in a Will can help safeguard assets and protect beneficiaries including existing family members and also future generations.  Some key uses of Will Trusts are set out below: Vulnerable beneficiaries. This could be relevant if the beneficiaries of your estate are physically or mentally disabled, are insolvent or have issues with substance abuse, for example. Setting up a Will Trust…

Why a health and welfare power of attorney is a good idea

A health and welfare lasting power of attorney is a legal document which allows you to appoint people you trust to make decisions about health treatments and personal care for you if you lose the mental capacity to make such decisions for yourself Sian Foster, a specialist with Ware & Kay in York explains how this document gives your attorney the power to make decisions, on your behalf and in your best interests, in regard to things like eating, washing, medical care, where you should live, or whether to continue life-sustaining treatment. The exact decisions they can take for you will depend on your instructions. For example, an attorney can only consent to or refuse life-sustaining treatment on your behalf if you specifically state this. You can give your healthcare attorney power to refuse medication or…

The importance of Wills for farming families: safeguarding the future of your farm

“Keep Safe” is a phrase we have heard frequently in the past few months – whilst we all need to take heed – don’t forget the importance of keeping your farm or property safe too. It is not unusual to have more than one generation of a family working on a farm and if the owner has not left clear instructions about who is to inherit the estate there is huge potential for dispute.   ‘With the increase in land prices over the years, farm assets may be worth literally millions of pounds and the consequences of a family member dying intestate without a Will can be disastrous’ says Laura Carter, Wills & Probate Solicitor. Making a Will is particularly important in farming families where some members want to farm and others do not or cannot…

Wills and how to protect your wealth

What is a trust? A trust is a legal arrangement where individuals are chosen (known as Trustees) to look after assets for the chosen beneficiaries.  Trusts can take effect during a person’s lifetime or alternatively, they can be incorporated into Wills which take effect on death.  This article focuses on Will Trusts.   Circumstances where a Will Trust would be beneficial Most of us are unaware of the various ways in which setting up a Trust in a Will can help safeguard assets and protect beneficiaries including existing family members and also future generations.  Some key uses of Will Trusts are set out below: Vulnerable beneficiaries. This could be relevant if the beneficiaries of your estate are physically or mentally disabled, are insolvent or have issues with substance abuse, for example. Setting up a Will Trust…

Making a Will: Q&A

What is a Will? A Will is a legal document setting out what should happen to your assets after you die.  To be valid, a Will must be executed in accordance with certain legal formalities.  If you make a Will with Ware & Kay, we ensure that these formalities are complied with. Do I need a Will? If you have assets at present or you at least expect to acquire assets in the future, the answer is yes.  In any event you should make a Will if you have minor children, to make provision for their future needs.  A carefully drafted Will prepared by one of our legal experts would establish your wishes clearly and minimise the risk of disputes and distress caused to your loved ones following your death. What happens if I die…

Safeguarding future of the family farm

Death and taxes eventually come to us all but for farming families succession planning can be particularly complex, given that agricultural businesses are held in a variety of ways and ownership can be split between the wider family. Emma Elwess, Director of Private Client Department at Pearsons & Ward Solicitors in Malton advocates taking a holistic approach to succession planning in the agricultural sector to ensure the family business can thrive and be passed down to the next generation. ‘When it comes to safeguarding the future livelihood of your family, it makes sense to be prudent and take as much advice as possible to ensure your affairs are in order. There are a number of different professionals, such as land agents, accountants, and agricultural lawyers who can work together on the best ways of structuring…

Government increases “statutory legacy” to £270,000

The government has increased the “statutory legacy” for partners of people who die intestate, from £250,000 to £270,000. Ministers said they would raise the amount partners can inherit, in line with the consumer price index, every five years. The amount was set at £250,000 in October 2014 and will be increased to £270,000 from 6 February this year; slightly beyond the initial deadline. Commenting on the imminent rise, Law Society President Simon Davies took the opportunity to stress the importance of an up-to-date will. “This increase is very welcome,” he said, “But many people are unaware that unmarried partners and close friends cannot inherit. Writing a legally valid will with the help of an expert solicitor ensures people’s estate is inherited exactly as they would choose.” For more information on Wills, Power of Attorney, Estates and…

Planning for later life care

Many of us are guilty of putting our heads in the sand when it comes to looking at what may befall us in later life. As people are living longer, the incidence of strokes, dementia and loss of mental capacity is becoming more prevalent. Many of us will live to a ripe old age without facing these issues, but nevertheless, a few simple planning meetings with the relevant professionals, will help ensure that things go as smoothly as they can. We are members of Solicitors for the Elderly (SFE) and we will ensure that you have all the legal documents in place to get you what you have planned for and that you have considered the pitfalls that may face you in later life and ways to avoid them if at all possible. Wills A…

Easing your inheritance tax liability

As farming families frequently rely on the natural succession of the farm, where ownership is passed down through the generations, every care must be taken to avoid a hefty inheritance tax bill. The first step is, of course, to ensure that you have a valid and up-to-date Will to ensure that the legal ownership of the land and business assets used in running the farm pass to your chosen relatives or other beneficiaries. In addition, your Will should be drafted smartly to ensure that it makes use of every available opportunity to ease inheritance tax liability – particularly with regard to the use of agricultural and/or business property reliefs. Another such measure that was only introduced in 2015 is the residence nil-rate band. Laura Carter, specialist agricultural Wills & Probate Solicitor at Pearsons & Ward…