Children of farming families could be left high and dry despite their parents’ promises, as half of those making inheritance assurances also admit they could still change their mind.
This is according to new research from inheritance experts at Lime Solicitors, which found that only half of all farm owners have committed their intentions to paper.
This is despite 82% of agricultural business owners having discussions with their children, while 67% have made promises.
One of the main reasons farmers would exclude a relative from inheriting the business were worries they would sell the farm to a member outside the family.
However, with no will in place, experts warned that families left behind could see their livelihoods taken away or be forced into inheritance disputes.
This could also rack up thousands of pounds in legal fees thanks to broken promises, according to Lime Solicitors.
Alistair Spencer, legal director at the firm, said promises and assumptions were 'futile' without a will, and misunderstandings could often lead to lengthy and emotional disputes.
"When a family is in mourning, dealing with legal disputes is the last thing anyone wants to go through," he added.
"Even though conversations about inheritance can be tricky, transparent communication early on can help ensure that expectations match up to the reality of children’s inheritance.”
Farm owners also had concerns that their relatives were not skilled enough to effectively manage the business. This was highlighted by nearly one-third of respondents.
And a further 46% of farmers believed it should only be inherited by people who have worked in the business.
However, the severe changes to agricultural property relief and business property relief made in the budget would also now influence farmers’ decisions about the future, Lime Solicitors warned.
The announcements could force agricultural business owners to sell off some of their assets during their lifetime to stay under the £1m threshold.
And farmers may also sell their land and business altogether, impacting the inheritance of those left behind.
Lime Solicitors concluded that families should have open discussions early on to avoid any disappointment which could lead to family disputes.
