Succession planning

2. Be equitable

Most issues around inheritance and succession arise when one of the parties feels as if they have been treated unfairly. Primogeniture has for long been the basis of succession, but times are changing. If you want each of your children to have an equal share of your estate, work out how best to do that based on their needs, values and interests.

You may need some creative thinking to achieve parity across different asset classes. If you would prefer one sibling to take over a farming business in its entirety, discuss this with everybody and explain your rationale; communication and clarity is everything.

3. Protect the assets

Rural property owners often aspire to leave some kind of legacy for multiple generations, not just their children. But whilst we hope our successors will look after any inherited assets – divorce, bad habits, lack of interest and even, sadly, early death do happen more regularly than we care to imagine.

Putting assets into trust can be a good way to protect them from unforeseen or unexpected circumstances. Whilst trusts might not remove IHT liabilities, they can help spread the risk, and they allow for planning to pay the 10-year IHT charge. Consider what other governance structures might help in the future.

4. Think about risks ahead

Mitigating IHT risk is obviously top of mind for everybody at the moment, but it’s important to know which IHT reliefs and lesser-known exemptions apply to which assets. There may still be time to get full relief on farmland, woodland and trading assets, but residential and commercial property are more difficult to transfer.

It’s also worth considering taking out insurance cover in case you don’t live for the full seven years after making a gift.

5. Look after yourself

During the succession process, the focus is often naturally on the next generation. But if you are planning to make gifts to your children, you need to ensure that you have kept sufficient resources back to ensure that you have the means to continue living the lifestyle that you aspire to.

You must also bear in mind the tax implications of continuing to benefit from any gifted assets. You cannot, for example, live rent-free in a property that you have gifted to somebody else to mitigate IHT liabilities.

Time is running out to beat the April 2026 deadline, but it’s not too late to make changes. Move fast and surround yourself with a good professional team to help guide you through this complex process – an experienced agent working collaboratively with your solicitor or accountant will make all the difference.

Our teams are here to help should you need it.