Rise in pre-nup and post-nup agreements for farming families following budget reforms
Specialist agricultural legal professionals at Clarke Willmott LLP have reported a surge in enquiries about pre-nuptial and post-nuptial agreements from farming households, following current authorities modifications to inheritance tax on farm property.
With succession planning now a urgent concern, personal shopper and household regulation specialists are seeing elevated demand for authorized recommendation to safeguard farming property, making certain they continue to be throughout the household for future generations.
Holly Smith, an affiliate in Clarke Willmott’s household regulation group, defined that nuptial agreements can play a significant position in securing agricultural property, together with land, livestock, farming tools, and enterprise pursuits.
“Many farming households recognise the significance of defending particular property and making certain they keep throughout the household,” she stated. “A nuptial settlement can make clear possession and description how property—together with future inheritance and enterprise pursuits—will probably be managed within the occasion of a divorce.”
Below authorities plans introduced in October, from April 2026, agricultural and enterprise property property as much as £1 million will proceed to obtain full inheritance tax reduction, however something above this threshold will probably be taxed at an efficient charge of 20%. Farmers warn that these reforms might create extreme monetary challenges and even impression meals manufacturing.
Smith careworn the significance of early authorized planning: “We perceive how involved our agricultural shoppers are about these new guidelines. In search of authorized recommendation now could be important to mitigate dangers and defend household property.”
Past inheritance tax reforms, nuptial agreements are more and more related when bringing the subsequent era into the household enterprise, gifting property, establishing trusts, or restructuring agricultural enterprises.
“By addressing potential points upfront, farming households can guarantee readability, cut back the danger of disputes, and protect their agricultural heritage,” Smith added.
As farming businesses navigate these legislative modifications, authorized consultants are advising early motion to safe long-term asset safety and keep away from future uncertainty.
