Succession planning and preparing your farm for the future

Tom Mottram outlines the farm inheritance tax changes, describing recent times as having been “a busy and an interesting 18 months or so.” While reliefs still exist, thresholds have tightened, meaning more farm businesses may now face a potential tax liability. Tom explains, “inheritance tax is a fiendishly complex tax”, and understanding how it applies to individual circumstances is now more important than ever.

For Jilly, the impact of these changes has been very real. Farming with her family near Exeter, she describes the government’s announcement as “a seismic moment” which left many businesses reassessing their position overnight. “It caused a lot of sleepless nights,” she admits, highlighting the emotional as well as financial strain uncertainty brings.

Taking control in uncertain times

What comes through strongly is the value of taking a proactive approach. Jilly explains how her family responded quickly, working closely with accountants and solicitors to restructure the business and protect future generations. “We’ve done our very best to protect the farm for the fifth generation and the sixth and hopefully the seventh,” she says, though she acknowledges the process can be costly and complex.

A recurring theme is communication. Tom stresses the importance of involving all family members early, rather than leaving decisions until later. Relying on assumptions can lead to misunderstanding, whereas open conversations help ensure everyone shares the same vision. He encourages farmers to ask themselves, “What are the issues, where do you need reassurance, what has not been said?”

Jilly’s own experience reinforces this point. Reflecting on the challenges her family faced in the past, she describes the consequences of leaving decisions too late as “a terrible burden” that caused lasting strain. Her advice is to start the conversation early and revisit it regularly.

Plan early when gifting

In a follow-up bonus episode, Tom and Jilly discuss the complexities of gifting as part of succession planning. While gifting assets can help reduce inheritance tax liability and support the next generation, there is far more to consider than many realise.

Tom warns farmers not to rush into decisions without understanding the consequences as gifting can affect more than inheritance tax. “Don’t give away more than you can afford to,” he advises, stressing the importance of income planning and making sure people remain financially secure later in life.

Drawing on her own family’s situation, Jilly describes how transferring assets has helped create a more strategic role for her and her husband while giving the next generation greater responsibility. “You can’t have transition without, in terms of the partnership, a transfer of assets,” she explains.

The need to start conversations early and seek trusted professional support cannot be overstated. “Being informed is basically a strength,” concludes Tom, particularly when decisions made today could shape the future resilience of the family farm for generations to come.

Putting the right plans in place

Alongside communication, both guests highlight the importance of having the right structures in place. Partnership agreements, up-to-date wills and powers of attorney are all essential foundations. Regular reviews, supported by a trusted team of advisors, can help ensure plans remain relevant as circumstances change. It’s also important to remember to let your insurance provider know if you change your business structure so all your policy details remain correct.

Despite the challenges, there is a sense of cautious optimism. “There is a way through,” Jilly concludes. With the right support, clear communication and a willingness to act, farm businesses can plan with confidence and secure their legacy for future generations.

Episode showstoppers

1.      Don’t delay. The time to put your affairs in order is now, while you can plan ahead and consider different scenarios with all those involved.

2.      Consult the relevant professionals and assemble the right team to support you.

3.      Do the paperwork. This may include an up-to-date will, power of attorney and/or a partnership agreement.

Listen to the full episode and bonus below - also available via Spotify and Apple podcasts.

About our guests

Tom Mottram is a partner at Porter Dodson solicitors covering Poundbury, Sherborne and Yeovil. He specialises in all aspects of succession planning, working with other professionals to secure the best outcome for clients.

Jilly Greed is the fourth generation of her family on Fortescue Farm near Exeter in Devon, farming in partnership with her husband Ed and son George, running a fully organic mixed enterprise of suckler beef and arable. Jilly is also co-founder of the Great British Beef Week.