Sort things now to avoid passing on hurt to the next generation
Life never seems to get any simpler and I find myself ever increasingly involved with helping farming families solve disputes.
These disputes take many forms and they can be within the family or against a third party. Disputes around death, divorce and partnership are sadly all too common. Whether it be contesting a family member’s will or sorting out the shares between parting spouses, I am frequently called in to provide advice and valuations.
I tell any farming family that it is always so important that everyone has a will. People don’t always die in the correct order, tragedies happen and the aftermath is so much less painful if some thought has been given to what might happen to the assets after death.
I also find that quite often people have unrealistic expectations about what might happen after their death and seek to overcomplicate arrangements. It is understandable that granddad might want to set up a will that attempts to keep the farm within the family. However unless very carefully thought through, it can shackle the next generation and limit their flexibility. It also assumes that the grandchildren will view the farm in the same way as he did, which very often they don’t.
Providing for children and grandchildren who are not involved in the farming business can also be very problematic. Unless it is a very large business it is often unrealistic for them to have a share in the ongoing business.
Hopefully there may be some assets outside the farm that can be earmarked for them.
All too often I have found farming children saddled with a hopeless debt and commitments to other siblings or even cousins who have never been involved with the farm. Conversely, no recognition of the non-farming family members can be extremely hurtful and divisive.
It is far more useful to have a discussion well in advance so that everyone has a fair idea of what to expect and paying a professional to help initiate and guide those discussions will reap rewards for years after and help keep family conflict at bay.
Some time ago I was involved in trying to help one family where a son was so distraught at what he felt was the unfair provision for him in his father’s will that he took out a mower close to harvest time and lopped off the heads off the entire wheat – over 100 acres.
Feelings can run very strong and sorting out that kind of problem gives no pleasure while helping a family to plan and provide for the future is so much more rewarding.
Mike Taylor is senior partner at Barbers Rural Consultancy LLP.
