Generations of estate planning for farming families has followed a well-tested approach. The eldest, usually a son, takes over the farm and the remaining siblings get something from their estate that their parents considered fair.
No disputes, no need for lawyers, and the family stays together with no grievances.
Today it is becoming more difficult for farming families to follow the old model. As farming assets increase in value and family structures grow in complexity, lack of effective estate planning is one of the biggest risks for farming families.
Informal arrangements made amongst farming families collide with real financial grievances. A modest buyout of siblings to keep the farm intact brushes up against serious financial considerations for all family members.
There is also a wider concern for the farming communities. When farms are sold and split up through a contested estate, they are often sold to foreign investors or large corporations. Because no one family member can afford to buy the entire farm, families that were considered the glue of a community move and disintegrate.
Estate planning for farming families is about more than deciding who gets the farm. It is about protecting your family and ensuring the farming business can continue into the next generation.
What should a succession plan cover?
A Will is an important starting point, but it may not be enough. Farm assets may be held through companies, or trusts, each with its own rules governing ownership and control. A Will alone may not transfer control of these structures as intended.
A comprehensive plan should consider:
- Estate and business succession:Review your existing arrangements and decide how farm assets, ownership, and decision-making authority should pass during your lifetime, on incapacity, or after death.
- Business structures and agreements:Review trust deeds, company constitutions, shareholder agreements, and other arrangements affecting the farm’s operation and ownership.
- Estate planning documents:Prepare or update your Will, Enduring Power of Attorney, Enduring Power of Guardianship and other relevant documents.
- Financial and tax planning:Assess the costs of ownership transfers, potential tax consequences, borrowing capacity and the funding needed to keep the business operating.
Start the conversation early
Estate planning can be difficult. The next generation may have different levels of involvement in the farm, while the outgoing generation needs financial security, and the freedom to retire on its own terms. Finding an arrangement that is fair to everyone takes time.
To avoid taxes and duties the earlier you act the better the result is likely to be.
Leaving these decisions until a major life event occurs can increase the risk of disputes, unexpected costs and uncertainty over who has authority to make business decisions.
Early planning gives families time to discuss their expectations, explore options and obtain legal, accounting, and financial advice before decisions become urgent.
When approached collaboratively, estate planning can help protect family relationships and give the next generation a clearer path to taking over the business.
Bringing the right advisers together
Successful estate planning often requires a coordinated approach.
- Legal adviserscan prepare and review estate planning documents, business agreements, and ownership structures.
- Accountants can assess tax implications and model the financial consequences of different succession options.
- Financial plannerscan help manage risk, structure investments and protect long-term wealth.
Planning ahead can help protect both your family’s future and the long-term viability of your farm. If you are considering estate planning or reviewing your farming business’s financial structure, book in an initial consult with a member of our Estates team to explore options that align with your goals.
This article has been authored by Bryce Blair. Bryce brings a diverse academic and professional background to his legal practice, with qualifications in law, history, and business. Admitted in both Western Australia and New Zealand, he works across Wills and Estates and Commercial Law, assisting clients with matters ranging from estate planning and deceased estates to contracts, business structuring, and dispute resolution. Bryce is passionate about providing clear, practical advice and helping clients feel supported and informed when navigating important personal and business decisions.
Outside of work, Bryce enjoys live sports, Jiu-Jitsu, reading, and spending quality time with family and friends.
