FAQs

1. What Inheritance Tax relief is available to agricultural property and land?

   Agricultural property can qualify for Agricultural Property Relief and these assets are exempt from Inheritance Tax or subject to less Inheritance Tax.

   Agricultural Property Relief can be claimed for:
   • Land used to plant/grow crops, rear animals or plant trees harvested at least every 10 years
   • Stud farms for breeding and rearing horses and grazing
   • Farm buildings, farm cottages and farm houses
   • Land not currently being farmed under the Habitat Scheme or Crop Rotation Scheme
   • Some agricultural shares and securities
   • The value of milk quota associated with the land

   Agricultural Property Relief cannot be claimed on:
   • Farm equipment machinery
   • Derelict buildings
   • Harvested crops
   • Livestock
   • Property subject to a binding contract for sale

   We highly recommend meeting with one of our lawyers to discuss your agricultural assets, who will then provide you with a breakdown of the Inheritance Tax that is likely to be paid on your estate and suggest tax-efficient ways to mitigate this.

2. What is a Will?

   A Will is a legal document that sets out what you would like to happen to your assets when you pass away. If you do not make a Will, your estate will be dealt with under the laws of intestacy, and your estate may be distributed to family members whom you would not have wished to inherit.

   In your Will, you appoint executors, who are people you trust to deal with your estate, guardians to look after any minor children, and beneficiaries who will inherit your estate assets.

3. Do I need Lasting Powers of Attorney for my business?

   If you own a business, it is vital you make Lasting Powers of Attorney to ensure that if you lose capacity and are unable to make your own decisions, someone you trust can make those decisions on your behalf.

   If you lose capacity without making Business Lasting Powers of Attorney, this may cause issues for your company and even make small tasks very difficult, for example, using the business bank account.

4. Do I need to update my partnership or cross-option agreements when making a Will?

   As part of our fact find with you we will check your partnership agreement or articles of association and suggest any recommended amendments to ensure that your wishes are carried out on death and check that the business will have the funds available to pay to your estate on death.  We will check that the necessary cross options are in place and if not make our recommendations on what is required to effect your wishes.

5. Why do I need Inheritance Tax advice?

   Inheritance Tax planning is vital for maximizing your estate and reducing your Inheritance Tax liability. Through tax-efficient planning, you may be able to save over £1 million in Inheritance Tax which would have been payable had you not obtained legal advice.