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Q&A: Issues of bequeathing farming assets

Kenneth Mackay, partner, land and rural business at Thorntons. Thorntons is a trading name of Thorntons Law LLP.
Kenneth Mackay, partner, land and rural business at Thorntons. Thorntons is a trading name of Thorntons Law LLP.

Q. I own my farm and have bequeathed it to one of my four children in my will. Can that be challenged by the other children?

A. No. Under current law, you are free to leave the land and buildings to a chosen beneficiary.

Q. What rights will my spouse and other children have?

A. You can bequeath other assets to your spouse and remaining children and you could leave a right to your spouse to live in a house. However, whatever the will says, your spouse and other children will be entitled to a fixed share of assets other than the land and buildings.

Q. My farm is owned by a family company in which I have the majority shareholding. If I leave this to my eldest son in my will can this be challenged?

A. Yes. Shares in a company are always treated as “moveable” property and will be vulnerable to a claim from your spouse and remaining children, even if most or all of the value of the shares relates to the farm.

Q. Is it correct that the law may be changed to take away my freedom to choose who I leave my farm to in my will?

A. The Scottish Government wants to change the law as part of its wider land reform plans to give protection from disinheritance. There will be a consultation and one option may be to add the value of land and buildings to the other assets to calculate the entitlements of the spouse and children.

Q. What should I do now?

A. Ensure that your will and succession planning are kept under review. You may wish to see if there is scope for certainty by transferring land during your lifetime.