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06/04/2011 07:59:18
The daughters can have it, as inheritance rules relax
Attitudes to inheritance and primogeniture are becoming more flexible; a survey for Country Life by chartered accountants Saffery Champness reveals that 57% of major landowners are prepared to leave their estates to their daughters
The Downton Abbey conundrum – the prejudice against daughters inheriting major estates – that tortured the Earl of Grantham throughout last year’s popular ITV series is almost a thing of the past, according to the newly released results of the Country Life Saffery Champness Succession Survey.
The survey was issued to Saffery Champness Landed Estates and Rural Business clients who, between them, own in excess of three million acres of agricultural land and property with ancillary businesses.
Although 16% of major landowning families implement the practice of primogeniture – the rule of inheritance by the first-born – a more flexible approach is prevailing; there is a greater acceptance by landowners that it’s acceptable and practical to leave the running of the estate to the child who is best placed to do so, regardless of age or sex.
Mark Hedges, editor of Country Life, says: "Male primogeniture has ruled for more than a thousand years since the Normans conquered Britain. This survey shows a profound change in thinking in who should inherit the great estate. I wonder how British history would differ had these ideas been in place for the past millennium."
This shift in attitude, suggests Mike Harrison, a partner in Saffery Champness Landed Estates & Rural Business Group, is partly due to changes in fiscal legislation and the general economic climate:
"Based on the past experience of Saffery Champness Landed Estates Group, there does appear to be much more openness and flexibility towards succession," explains Mr Harrison. "Factors such as a consistent rise in agricultural land values, now at record levels, comparable rises in residential property, longer life expectancy and a greater incidence of divorce, are all reflected in the survey results. Also, the diversification of landed estates from what were simply managed portfolios of let land and property, usually with a large country house at its core and with some forestry activity, has resulted in estates becoming much more complex, multi-faceted businesses."
Of those surveyed:
• 16% feel primogeniture of the eldest son (agnatic primogeniture) is very important
• 41% feel it is important, but will allow for younger children to inherit some wealth from the overall estate
• 43% feel primogeniture to be either less important or not important at all, preferring ability, fairness and equality
• 57% of landowners would leave their estates to the eldest daughter; 42% would provide a legal mechanism for all their daughters to inherit
• 53% think their heirs should be aged 35-44 to inherit; 39% prefer age 21-34
• 97% think their heirs should not rely on the prospect of an inheritance and should develop their own careers, although 74% do not believe that the prospect of an inheritance stifles career ambitions
• More than 61% are concerned that their estates stay in the family, either with the eldest or another child
• 25% are unconcerned if their heir sells the estate
• 91% want their heir to have full control of the estate. However, 58% feel that having the estate held in trust is either very important or important
• 71% have identified their heir, although a surprisingly high number have no process in place to develop their ability to run the business
The full results can be found in Country Life, on sale April 6. The feature also offers advice to readers on inheritance tax.
The Downton Abbey conundrum – the prejudice against daughters inheriting major estates – that tortured the Earl of Grantham throughout last year’s popular ITV series is almost a thing of the past, according to the newly released results of the Country Life Saffery Champness Succession Survey.
The survey was issued to Saffery Champness Landed Estates and Rural Business clients who, between them, own in excess of three million acres of agricultural land and property with ancillary businesses.
Although 16% of major landowning families implement the practice of primogeniture – the rule of inheritance by the first-born – a more flexible approach is prevailing; there is a greater acceptance by landowners that it’s acceptable and practical to leave the running of the estate to the child who is best placed to do so, regardless of age or sex.
Mark Hedges, editor of Country Life, says: "Male primogeniture has ruled for more than a thousand years since the Normans conquered Britain. This survey shows a profound change in thinking in who should inherit the great estate. I wonder how British history would differ had these ideas been in place for the past millennium."
This shift in attitude, suggests Mike Harrison, a partner in Saffery Champness Landed Estates & Rural Business Group, is partly due to changes in fiscal legislation and the general economic climate:
"Based on the past experience of Saffery Champness Landed Estates Group, there does appear to be much more openness and flexibility towards succession," explains Mr Harrison. "Factors such as a consistent rise in agricultural land values, now at record levels, comparable rises in residential property, longer life expectancy and a greater incidence of divorce, are all reflected in the survey results. Also, the diversification of landed estates from what were simply managed portfolios of let land and property, usually with a large country house at its core and with some forestry activity, has resulted in estates becoming much more complex, multi-faceted businesses."
Of those surveyed:
• 16% feel primogeniture of the eldest son (agnatic primogeniture) is very important
• 41% feel it is important, but will allow for younger children to inherit some wealth from the overall estate
• 43% feel primogeniture to be either less important or not important at all, preferring ability, fairness and equality
• 57% of landowners would leave their estates to the eldest daughter; 42% would provide a legal mechanism for all their daughters to inherit
• 53% think their heirs should be aged 35-44 to inherit; 39% prefer age 21-34
• 97% think their heirs should not rely on the prospect of an inheritance and should develop their own careers, although 74% do not believe that the prospect of an inheritance stifles career ambitions
• More than 61% are concerned that their estates stay in the family, either with the eldest or another child
• 25% are unconcerned if their heir sells the estate
• 91% want their heir to have full control of the estate. However, 58% feel that having the estate held in trust is either very important or important
• 71% have identified their heir, although a surprisingly high number have no process in place to develop their ability to run the business
The full results can be found in Country Life, on sale April 6. The feature also offers advice to readers on inheritance tax.
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