Farming businesses are risking their families’ livelihoods and leaving themselves open to causing unnecessary rifts - just by failing to keep a single piece of paper.
The agricultural team at law firm Wright Hassall is reporting a marked increase in the number of inheritance disputes arising in farming businesses.
Martin Oliver, a partner at Wright Hassall specialising in inheritance disputes, said the majority of disputes can be resolved quickly instead of being costly.
"Farming disputes after people have passed away have increased substantially in the last few years," he said.
"Many of these disputes could have been resolved very quickly, but instead have become extremely costly for the parties involved.
"Emotions tend to run very high between siblings and other family members in cases like this, and the reality is the dispute could be resolved by a straightforward piece of paper.
"It can be as simple as wording such as ‘I’ve had a talk with my son or daughter and I’ve promised them this…’. It is simple evidence, but the amount of disputes where there is no evidence in place is going up and up.
"What lawyers are looking for is the intention of the parties and what they were discussing. Problems occur when these type of discussions have not been documented."
John Rouse, partner in the wills, trust and tax team at Wright Hassall specialises in estate and succession planning for landowners, farmers and rural business owners.
He added: "Estate planning for farmers is very much a moving target, with tax laws changing all the time.
"It is important as a rural business to get your plan in place and on paper. Spending a few hundred pounds to do this properly could possibly save you thousands, if not millions of pounds, in the future.”
Wright Hassall hosted a protecting what is yours agricultural seminar at Stoneleigh Park in partnership with accountants Ellacotts, chartered surveyors Sheldon Bosley, NFU Mutual and Warwickshire Rural Hub.
The event looked at issues such as the importance of having well drafted legal documents in place, succession planning, pension freedoms and inheritance tax.
