Uncle passed away 18 months ago. He was 50% partner in the farm with my father. He hadn’t got round to updating his will since having got married 3 months prior to his sudden death (massive heart attack at age 75). So he is classed as having died “intestate” with no valid will to present for probate!
Referring to a recent Farmers Weekly article it was brought to my attention that partnership assets cannot be gifted in a will.
The partnership assets in question are the farm machinery and capital account of the farming business. His half share equating to £230,000.
The land is not in the partnership and is due to be divided via a deed of partition. Whereby of the 300acres owned in order for our side of the family to retain the farm house and yard. We will end up with 100 acres. His beneficiaries 200 acres plus a derelict cottage.
The partnership document being referred to dates back to 1966 when my grandfather, father and uncle formed the partnership. Grandpa died in 1982. My uncle last year. Myself(aged51), having worked all my life on the farm, earning a wage according to “agricultural wages board”. Only in the last 3 years having been brought into the partnership on a profit sharing basis. In all this time the partnership document has never been updated? Also it wasn’t until my uncles death that my father fished this document out of a dusty draw.
Would it be classed as a valid document in a court of law? Since within this document it states that on death the remaining partners have the option to buy the deceased’s share over 10 years at 4%.
Having a fabulous relationship with my uncle. I always trusted him that he would give me a “leg up” regarding the business and assumed that his will would reflect this.
Facing the prospect of losing 2/3rds of the land (it has been offered back to rent on a 5yr FBT) it is a very bitter blow to have to pay out on the machinery and current account of the business as well. Since this will decimate the working capital for years to come!
Referring back to the Farmers Weekly article I can’t help thinking that I may be in a better position to fight this clause if the document was invalid. Am I correct?
Referring to a recent Farmers Weekly article it was brought to my attention that partnership assets cannot be gifted in a will.
The partnership assets in question are the farm machinery and capital account of the farming business. His half share equating to £230,000.
The land is not in the partnership and is due to be divided via a deed of partition. Whereby of the 300acres owned in order for our side of the family to retain the farm house and yard. We will end up with 100 acres. His beneficiaries 200 acres plus a derelict cottage.
The partnership document being referred to dates back to 1966 when my grandfather, father and uncle formed the partnership. Grandpa died in 1982. My uncle last year. Myself(aged51), having worked all my life on the farm, earning a wage according to “agricultural wages board”. Only in the last 3 years having been brought into the partnership on a profit sharing basis. In all this time the partnership document has never been updated? Also it wasn’t until my uncles death that my father fished this document out of a dusty draw.
Would it be classed as a valid document in a court of law? Since within this document it states that on death the remaining partners have the option to buy the deceased’s share over 10 years at 4%.
Having a fabulous relationship with my uncle. I always trusted him that he would give me a “leg up” regarding the business and assumed that his will would reflect this.
Facing the prospect of losing 2/3rds of the land (it has been offered back to rent on a 5yr FBT) it is a very bitter blow to have to pay out on the machinery and current account of the business as well. Since this will decimate the working capital for years to come!
Referring back to the Farmers Weekly article I can’t help thinking that I may be in a better position to fight this clause if the document was invalid. Am I correct?