Farm succession: The importance of putting the right agreements and plans in place

“The common themes in these cases are a breakdown in communication between older and younger generations as to how the farm will evolve and who will inherit the farm; the absence of a properly thought through will; or a wholly inadequate partnership deed,” said Mr Walsh.

“They all highlight the importance of looking ahead to create clear, well laid-out plans to avoid future disputes.”

He said there must be a carefully thought-through will in place to address the delicate balance struck between the next generation of farmers and the needs of other non-farming children.

Successor

Lasting powers of attorney for both finances and health and welfare also ensures a person of choice will continue to manage any farming affairs and keep the farm going for the intended successor.

A properly drafted partnership deed is also recommended.

Mr Walsh added: “Not only can they be used to bring the next generation into the farm as a partner, but can provide the ability for the next farming generation to acquire the farm and for the resultant cash proceeds to be allocated to non-farming members of the family.

“The partnership deed can provide for a proper valuation process and set out the time scale within which monies are to be distributed.

“It is also important for the partnership deed to be looked at in the context of the will so there is no conflict of purpose between the two.”