Landed Estates: The Whole Estate Plan

• Published date: 07 August 2020
• Subject Matter: Family and Matrimonial, Coronavirus (COVID-19), Wills/ Intestacy/ Estate Planning, Operational Impacts and Strategy
• Law Firm: Charles Russell Speechlys LLP
• Author: Mr Tristram van Lawick and Alexander Caton

Why now?

Landed estates and farms are used to their business success, or otherwise, being subject to the whims of weather and climate. These businesses have had to become resilient to unforeseen challenges through frequent exposure. That notwithstanding, the last 18 months (if not longer) seem to have packed a disproportionate level of challenge into them before we even consider COVID-19. However, the ongoing pandemic can provide businesses and those who advise businesses with an opportunity to take stock of themselves in a way that they may not have been able to in a 'normal' year. In doing so, they have the chance to identify and capitalise on the potential opportunities presented by a change in working patterns and lifestyles, stemming from the current pandemic.

An important part of such stock-taking includes revisiting existing business and succession plans and considering a number of things - whether they are fit for purpose; whether they identify the business' core aims; whether they require review in light of changes to the UK tax regime; whether there are opportunities that are being missed, or not being exploited to their full potential; or whether there are areas that are no longer (or perhaps never were) viable. This analysis applies to landed estates as much as to any other business seeking to emerge from the pandemic in good shape.

Having a plan

All businesses should have a plan to set out how they are going to be a success, and landed estates are no different in that respect. However, what does differentiate landed estates from other businesses is that they are so much more: they are homes, they are the centre of a community and they are a legacy to be safeguarded for future generations. As such, having a good estate plan is essential to ensure that all these facets of an estate are protected and their requirements met.

Purpose of the plan

Knowing that you need a plan (or need to review the existing plan) is important; but before launching into this, it is just as important to consider what purpose it serves. From our experience, having a whole estate plan delivers a number of ends:

1. Goals - It establishes clear goals over the short, medium and long term that the estate wishes to achieve together with the roadmap for meeting those goals. Part of this includes clarifying where the succession to the estate will pass so all are aware of this, ie both family and advisers.
2. Constitution - It serves as a constitution or a charter which binds...