‘To do nothing is not an option’

A GROWING number of farmers are tempted to avoid creating a succession plan and blame the day-to-day demands of the business as “getting in the way” of developing a successful agreement.

While evolving a succession plan can be a difficult, long-term process, solicitor Anne Elliot urged farmers: “to do nothing is not an option”.

Ms Elliot, a solicitor specialising in agricultural work, wills, trusts and tax planning, said the task is very easy to avoid undertaking on the pretence of it being too time consuming and affecting the day-to-day demands of business.

“From a legal point of view, the key issues in a succession plan are the passing on of ownership and the minimisation of taxes, but it must bring together personal objectives, family objectives and financial objectives” she said.

Ms Elliot outlined that, once a succession plan is achieved, it should take forward and evolve the business, and if possible, retain a strong family identity.

Other benefits of constructing a plan included safeguarding a lifetime’s hard work, ensuring harmony and maintaining family unity with a proactive succession transition, passing business control to the right people and enhancing prospects for growth and development.

“The benefits of a successful succession plan is that it offers peace of mind, greater financial and emotional security, a smoother transition and a saving of stress, time, tax and probably professional fees,” she said.