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Thu, 27 October 2016


Farm succession issue - Thu, 27 October 2016

Farming succession is one of the most problematic areas of estate planning. I have written in the past about the issue on my blog, and have written in local farming papers as well.

I saw an interesting article on the stuff website today:

http://www.stuff.co.nz/business/farming/85503942/siblings-fight-over-millions-in-farming-family-stoush

 

This was the classic case of a claim under the Family Protection Act, by an adult child who believed they were entitled to something, or perhaps felt they had been excluded, by the parents.

The applicant and her sister had inherited a little over 1 million dollars each. But the parents wanted the 4 million dollar farm to go to the brother. The daughter’s claim was dismissed because the Court found she was not in financial need and the 1 million dollar inheritance was sufficient.

The parents had in that case taken advice about what to do, and their estate plan had succeeded – albeit following litigation.

You will appreciate that there is not a one size fits all situation available. The best advice to give is to simply take the time to talk to your accountant or lawyer about the issues. What works for one family (with money) may not work for another. Or, what worked here (1 million) may not be enough for a family with extensive wealth. Your lawyer is the best person to advise you about these particular issues, but as above this should be in consultation with your accountant in case there are tax issues arising from (say) gifts or loans during your life.

If you need assistance or wish to discuss these matters generally, you can email me: Graham@lawnorth.co.nz

Law North Lawyer Kerikeri


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