Planning for retirement of partners in the partnership

[Doing it for the kids]

Most important thing is to speak to your accountant & perhaps solicitor
Our solicitor who sorted out Dad's probate said a farmer should never "retire"

Do you mean that on an official or un offices basis?

To the OP fair play. You are v lucky you parents are happy to chat about it. I nearly killed mine and buried him in the trench we were arguing over today.

They need to establish when they want to retire and what they will do with their time. Mine treat the farm as a hobby now undoing years of hard work and reputation which is soul destroying.

Best of luck

 

[Bruce Almighty]

Do you mean that on an official or un offices basis?

To the OP fair play. You are v lucky you parents are happy to chat about it. I nearly killed mine and buried him in the trench we were arguing over today.

They need to establish when they want to retire and what they will do with their time. Mine treat the farm as a hobby now undoing years of hard work and reputation which is soul destroying.

Best of luck

Unofficially - Dad had severe dementia for 6 years before he died. But he remained as a partner with me, my Mother and brother regardless. No IHT paid was an excellent result and a big weight off my mind.
I sympathise with you, there was many a time I could've stuck my Dad in a trench before he was ill !
Whatever we discussed I just knew there would've had to be a big shouting match before I got my way (usually)
I'm fully aware of friends & relatives having family battles - the only advantage of Dad's illness was that it put a stop to the rows - the sad thing was that he was really ill in 2006, the following year saw prices double & we were financially secure. Dad had struggled financially all his working life & missed out on our stability since 2007.

 

[Happy at it]

Do you mean that on an official or un offices basis?

To the OP fair play. You are v lucky you parents are happy to chat about it. I nearly killed mine and buried him in the trench we were arguing over today.

They need to establish when they want to retire and what they will do with their time. Mine treat the farm as a hobby now undoing years of hard work and reputation which is soul destroying.

Best of luck

I know of ones like that too.

Best advice I can give is to try to get it 'sorted' now, whatever that means. Try your best to live farm house in the main yard as soon as possible and encourage them to take it easier. So easy for parents to miss their retirement years through working, then suddenly get to an age where they aren't as capable to go places or do other things, and leave it too late so that building or moving to a new house becomes an unrealistic prospect.

 

[Chae1]

If they own property could these houses be a way of paying out non farming siblings?

 

[Top Tip.]

If they own property could these houses be a way of paying out non farming siblings?

Would think it would depend on how they are treated in the accounts,as to whether they 're an integral part of the business or are treated separately.

 

[joe soapy]

Unofficially - Dad had severe dementia for 6 years before he died. But he remained as a partner with me, my Mother and brother regardless. No IHT paid was an excellent result and a big weight off my mind.
I sympathise with you, there was many a time I could've stuck my Dad in a trench before he was ill !
Whatever we discussed I just knew there would've had to be a big shouting match before I got my way (usually)
I'm fully aware of friends & relatives having family battles - the only advantage of Dad's illness was that it put a stop to the rows - the sad thing was that he was really ill in 2006, the following year saw prices double & we were financially secure. Dad had struggled financially all his working life & missed out on our stability since 2007.

Ha, I could have wrote most of that.
Trouble is, I am "dad" now and its like a remake of an old movie

 

[multi power]

If they own property could these houses be a way of paying out non farming siblings?

Two houses and two siblings, sounds ideal solution to me

 

[dinderleat]

If they own property could these houses be a way of paying out non farming siblings?

Yes, but I don't want to get that far down the line as that could be 40 years time.

Their houses are separate from the business so personal assets

 

[upnortheast]

HM Govs sneaky lift in probate fee makes it less desireable to die being worth much
https://thefarmingforum.co.uk/index.php?threads/the-budget-2017-and-agriculture.162324/page-4

 

[Steevo]

HM Govs sneaky lift in probate fee makes it less desireable to die being worth much
https://thefarmingforum.co.uk/index.php?threads/the-budget-2017-and-agriculture.162324/page-4

Yes. A large increase for sure. Quite a tax on farming given the low incomes compared to other industries.

 

[nick...]

Must be a nightmare with most elderly parents not wanting the youngsters to take over.im sure its very very common
Nick...

 

[Global ovine]

I cannot comment on the OP's situation, as every case is different. However, having been involved in succession plans, let me be clear, these are the hardest things to sort when families have diverse ideas. The following points may be of interest:

• Succession plans can never be done too early.
• Always hard, because most farmers don't have a clear vision for the future and rarely have sat down and written a strategy for life nor for attaining their financial and physical goals.
• Most don't know how much they will need for retirement.
• Most don't know how much they need for personal drawings, even though they only get what is left over which is hard on mental health and marriages.
• Many do not know what is the best business structure to instigate to allow the next generation in, retire the current generation comfortably and cater for the non farming family members.
• Too many concentrate on current tax rules, these can change with each government and hence be irrelevant at generation changeover.
  
• Too many expect the next generation to take over for good or bad. Farming is not an inherited prison sentence if the heart is some place else.
• Experienced professionals should be used, for financial/productivity and for legal advice.
• A strategic plan should be written by the current operator and driver of the direction, and be reviewed every 5 years to make adjustments if family circumstance change due to health or as the next generation's understanding of their own vision for life develop.
• To bum along hoping the next year's prices will be the cure for hard questions does seem to be the common default option everywhere. There is too much at stake in most farming businesses not to invest some time and expense into tackling the hard questions.
• Often free advice is the most expensive!

 

[Bruce Almighty]

Ha, I could have wrote most of that.
Trouble is, I am "dad" now and its like a remake of an old movie

I know what you mean, I'm saying all the things to my 16 year old that Dad used to say to me

 

[meglancaster1]

https://readingagriculture.eu.qualtrics.com/jfe/form/SV_9FwA7Fmg4bi1eDP

***QUESTIONNAIRE ON SUCCESSION PLANNING***
My name is Meg Lancaster and I am currently studying for a Masters in Rural Land and Business Management at the University of Reading.To fulfil my dissertation aims and objectives, I am writing to ask if you would be able to fill out the questionnaire, which I have attached. The dissertation, hopes to explore the topic of farm succession, in particular the issues surrounding the process, exploration of different perceptions, attitudes towards entry and exit and the future of succession planning. Hopefully this shall only take a few minutes of your time. Many thanks!