Legal advice regarding uncles estate

[Pennine Ploughing]

Marry your uncles widow, job sorted

 

[HolzKopf]

Surely, over the years, although the partnership itself may not have to file accounts, the partners' own tax returns are based on their earnings and a nominated partner should be responsible for these calculations.

It beggars belief that the farm's accountants / solicitors have not advised or insisted that the fragility of the current arrangement should be revisited given the recent marriage of one of the partners and also that you (a relative) have been a significant part of the business for many years

I know some advisors aren't 'proactive' but this, if you have a working relationship with your accountant or family solicitors, borders on the negligent imo

Just getting the document 'out of a dusty drawer' after many years seems somewhat bizarre given the values the OP speaks of

HK

 

[farmerm]

18 months down the line!! Hindsight is a wonderful thing but should a lot of these questions not have been asked 17 months ago?

 

[Flatlander]

My father and uncle were in virtually the same situation, uncle was married with a son but separated days after the wedding, I was working on the farm since leaving school at 16 on the belief that uncle was making sure everyone was going to be ok. Between them they had paid out siblings over the years when both parents had passed leaving their share equally between the children. Uncle had been struggling with doing the work for a number of years and I was travelling to his farm helping at busy times. After a sudden death it became evident that all had been left to his son. partnership agreement dated back to the 50s but gave surviving partners the right to buy the remaining share at market value. Being a half share in everything it was worth less to Anyone else so we were able to buy it at a 5% discount. It was also noted that I had worked there for 8 years for said partnership without official pay because of the promise that I’d be taken care of. I’d get good advice on which way will be best fir you concerning the partnership agreement. If your families intentions are to buy the share/land it may be worth lumping the entire farm together rather than separate it. It would be cheaper to buy the half share than half the number of acres free and clear. Maybe a cash buy out for the uncles wife with her and you avoiding large legal and marketing costs could work in your favour. either Way it will leave you with a bitter taste and a significant cost . From my experience solicitors are always right but cover their a55 with the ‘in my opinion’ so when things go wrong they aren’t liable. I wish you the best of luck in resolving this.

 

[organicguy]

That is my thinking also.

The original partnership will still be valid depending on how it was worded.
The wording of what happens on the deaths of the partners is the critical part.
Many partnerships continue even if one or more of the partners die.

In my experience and this is only worth what you paid for it, it is entirely dependant on the wording of the will.
When my father died our partnership continued without any changes, because that is what the partnership said could happen.
It did make life much easier for the remaining partners.
Get legal advice.

 

[Westcountryfarmer]

I know a very good barrister who specialises in farming and similar matters and can help you out. Would you want his number?

 

[Werzle]

I know a very good barrister who specialises in farming and similar matters and can help you out. Would you want his number?

I have a number he can ring after ringing your contact, its 999

 

[XXFarmerJessXX]

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?

Stephensons Rural, York!! give them a call for advice Good luck