Passing on Land and Property Spinster Bachelor

[options]

My elderly aunts (sisters) never married and never had children - they have lived together in the family farm - over 40 acres. My brothers and sisters are the only dependents.

Is there a way for them to minimise the IHT on either death to ensure that the family farm ( 5 generations ) is passed onto their neices and nephews without having to sell the land to pay an large IHT liability.

Also the farm is grazing and has been so without a break but could potentially be zoned for development but has always been used for farming. Is it true that the probate guys can value this land as building potential for IHT purposes even tho there is no intention to change it's use.

In essence we just want the land and builings passed down to the family without losing something htat has been in the family for generatiions to IHT.

Any guidance is appreciated,

Sue

[pqtaxation]

Hi Sue

The property looks to comprise a freehold (farm) house and some 40 acres of freehold land owned jointly by your two aunts.

Unless pre-death your aunts wish and have the means to gift the property to you and to move away, estate planning for your aunts will probably focus on whether agricultural property relief (APR) from inheritance tax (IHT) will be available on their deaths. APR on this type of property is a complex area, on which expert, professional advice is essential, and your mention that (some of) the land has development potential (thereby increasing its over value to more than its value for agriculture) only adds further complexity. Yes, the development potential of land is relevant to its valuation for probate.

So your steps look to be for you to agree with aunts to whom do they wish the property and rest of their estates on death to pass, to help them value their estates except for the property, to seek expert, professional advice on property and APR, and have aunts execute wills and take steps suggested by solicitors and agricultural property experts to improve or at least maintian prospects for APR.