Non farming beneficiaries of BPS funds??

[mdagri]

My uncle passed away last January shortly after the BPS cheque landed in our current account. He has left his 50% share of the farm plus 50% share in the business to his daughter whom he had after an affair with a married women.
It is only in recent years that he had even acknowledged her existence( she is now in her late forties) Although we new about her I have never had the opportunity to creat any form of relationship with her. And hence have not even held a conversation with her. She has never had anything to do with the farm whatsoever.

In order to save the 350 acre family farm (farm house and buildings) we are having to give her the lions share of the land in order to arrive at an equal monetary value. This is bad enough but to also take care of his 50% share in the business we have to give her £220,000 in cash. Most of which to be paid upfront!
This figure is a combination of his share of the machinery assets plus half of the current account.

Due to the fact that we have farmed quite conservatively over the years the current account is thankfully in a healthy state but my question is this.

Is she entitled to funds in the current account which were recently bolstered by the payment of the BPS cheque? Surely these funds should remain with the active farming enterprise as they were intended!!

Opinions much appreciated.

 

[B R C]

I’m no expert but that bps cheque would have been for the previous year so at the time of your Uncles death it would have been owing to the business so yes it would go into the assets for valuation.
Seems hard at the time but you are not losing the £220k, it’s still there In the business asserts as its all yours rather than 50%.

 

[serf]

What a nightmare , doesn't sound fair at all , would get some legal advice obviously.
Surely there must be some recognition that the assets wouldn't be as they are now if you hadn't kept things running , one for goweresque to advise you on .

 

[Formatted]

This is advice you don't get from a forum; this is advice you get from your lawyer

 

[Goweresque]

What a nightmare , doesn't sound fair at all , would get some legal advice obviously.
Surely there must be some recognition that the assets wouldn't be as they are now if you hadn't kept things running , one for goweresque to advise you on .

This ones way above my pay grade I think! Professional advice most definitely needed. Is it not the case that the partnership is automatically dissolved at the date of the death?

What happens when a business partner dies? - IBB Law

Unfortunately, I have seen many situations involving emotional and financial stress, legal implications and costs when a partner of a...

www.ibblaw.co.uk

Reading the above it seems that if there is ongoing business (which in the case of farming there most likely probably is) its the responsibility of the surviving partner(s) to wind the business down and get in all monies owed (which would include BPS), settle all debts and whats left is distributed as per the partnership share. Potentially the debts might include a management fee to the surviving partners for running the business after the death, but some serious accounting/legal advice is needed here.

 

[farmerm]

What a terrible situation all round. Did your uncle really hate your father and yourself so much as to rip out the viability of the business? Certainly one for professional advice but I would think the BPS would have been owning at time of death and would fall inside the value of your Uncles estate.. Have you reached out to this cousin of yours? Money can destroy even the strongest of family ties but there are also some people out there who can see past there own greed. Your cousin may only want the money and may not give a dam for you but equally she may just need the opportunity to connect? Is there a formal partnership agreement that explicitly states your uncle has a 50% share in the business, if your father and yourself are both working partners and there is not written agreement it could be argued your uncles share was actually less than 50%...

 

[Sonoftheheir]

Wow, that is a harsh situation! Hope you have the tax side of things sorted too? She’s going to pay a large amount of tax on that lot.

 

[Johnnyboxer]

Wow, that is a harsh situation!

Hope you have the tax side of things sorted too?

She’s going to pay a large amount of tax on that lot.

She might not care
After all, it’s money she didn’t have before her father’s death, so you will judge it as a bonus - paying tax might not bother her

 

[Hilly]

If she has anything about her she would give you the whole lot back ! Bloody terrible that .

 

[midlandslad]

My uncle passed away last January shortly after the BPS cheque landed in our current account. He has left his 50% share of the farm plus 50% share in the business to his daughter whom he had after an affair with a married women.
It is only in recent years that he had even acknowledged her existence( she is now in her late forties) Although we new about her I have never had the opportunity to creat any form of relationship with her. And hence have not even held a conversation with her. She has never had anything to do with the farm whatsoever.

In order to save the 350 acre family farm (farm house and buildings) we are having to give her the lions share of the land in order to arrive at an equal monetary value. This is bad enough but to also take care of his 50% share in the business we have to give her £220,000 in cash. Most of which to be paid upfront!
This figure is a combination of his share of the machinery assets plus half of the current account.

Due to the fact that we have farmed quite conservatively over the years the current account is thankfully in a healthy state but my question is this.

Is she entitled to funds in the current account which were recently bolstered by the payment of the BPS cheque? Surely these funds should remain with the active farming enterprise as they were intended!!

Opinions much appreciated.

An awful position to be in.

How have you dealt with the land that she now owns?

 

[Clive]

My uncle passed away last January shortly after the BPS cheque landed in our current account. He has left his 50% share of the farm plus 50% share in the business to his daughter whom he had after an affair with a married women.
It is only in recent years that he had even acknowledged her existence( she is now in her late forties) Although we new about her I have never had the opportunity to creat any form of relationship with her. And hence have not even held a conversation with her. She has never had anything to do with the farm whatsoever.

In order to save the 350 acre family farm (farm house and buildings) we are having to give her the lions share of the land in order to arrive at an equal monetary value. This is bad enough but to also take care of his 50% share in the business we have to give her £220,000 in cash. Most of which to be paid upfront!
This figure is a combination of his share of the machinery assets plus half of the current account.

Due to the fact that we have farmed quite conservatively over the years the current account is thankfully in a healthy state but my question is this.

Is she entitled to funds in the current account which were recently bolstered by the payment of the BPS cheque? Surely these funds should remain with the active farming enterprise as they were intended!!

Opinions much appreciated.

his estate is the value of all he owned on the day he died i believe - if money has come in since thats not part of it

IF BPS was a. creditor on day he died though that is part of his estate

i would seek some professional advice

Sounds like a terrible situation to find yourself in but I guess the asset did belong to your uncle and its up to him to do as he wishes with that

you may have grounds to contest however, certainly worth professional opinion

 

[farmerdan7618]

It's too late in this case, but anyone farming in partnership (or through a company) should be having the conversation of what happens when they die - it happens to everyone at some point.

In this case, very much on to take professional advice on and is likely that dates are critical. Solicitor and accountant would be where I would go.

 

[midlandslad]

Were there any discussions with uncle as to what his intentions were with his estate in the future?

 

[farmerdan7618]

My other question would be 'was there a will?'

If Uncle's wife had passed away, intestacy would have left his assets to his daughter.

 

[Johnnyboxer]

If she has anything about her she would give you the whole lot back !

Bloody terrible that .

She inherited though, from her father

 

[serf]

She might not care
After all, it’s money she didn’t have before her father’s death, so you will judge it as a bonus -paying tax might not bother her

Exactly, there will be no emotional attachment to the place , she will be glad for any amount regardless of the IHT bill unfortunately!

 

[tepapa]

Where will the iht bill come from? If the uncle was farming when he died, a lot will be covered by Apr and bpr.

 

[tepapa]

As far as the sfp is concerned. If the uncle died in January and you made a claim for sub in May, I suppose it would depend if you claimed in the original business name or a new trading name. The executors would have a duty to make sure the estate claimed what it was due until it was sorted. The beneficiaries of the estate would still be due what was there's, i.e. half.

 

[Johnnyboxer]

Where will the iht bill come from?

If the uncle was farming when he died, a lot will be covered by Apr and bpr.

Good point, well made

The lass will be happier, now

 

[Still Farming]

This is advice you don't get from a forum; this is advice you get from your lawyer

And another £000000 bill?