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LEAVING PROVISIONS FOR YOUR ANIMALS Philip Whitcomb, partner at law firm Moore Barlow specialising in rural matters, has outlined the key things farmers should consider when drafting a Will and the attention they need to give to their animals’ future to ensure they are taken care of. “As living beings, there are multiple aspects to consider when it comes to deciding what will happen to our beloved animals once we die, including how animals will be looked after and by whom,” he explained. Here he outlines his ‘top tips’ to South East Farmer:
PERSONAL OR BUSINESS?
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Livestock Farmers have the added complication in that it is not just one or two animals but a whole herd that will need to be looked after. These will be classed as business assets and devolve along with the assets of the business, whereas a beloved pet is classed as a chattel and will, unless otherwise bequeathed, form part of the deceased’s residuary estate. In other words, how a Will is structured will determine how animals are catered for. Extra complications can arise when considering working animals, such as sheep dogs, as there is no definitive classification. Are they an asset of the business or a beloved family pet? This means farmers should clearly state how they wish the animal to be viewed in their Will.
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PROVIDING FOR PETS
Pets are considered personal chattels, which means money cannot be left directly to them. Their needs, such as food and vet bills, can become expensive but still need to be provided for. Options such as leaving a gift in a Will and specifying the money is solely to be passed to the beneficiary to care for the pet can help ensure they can cover the costs. It is important to bear in mind, though, that there is no legal obligation for the beneficiary to satisfy this wish.
CHOOSE EXECUTORS WISELY
You can name up to four executors in the Will as being responsible for dealing with the estate. Who looks after the animals does not need to be specified. Selecting a person or people who have a basic knowledge of farming and looking after animals both working or larger, such as horses, will help ensure those left behind do not feel in the dark and help to relieve some pressure. Extra support can also be left in the form of a list with key professional contacts, for example vets, accountants and advisors. This will make it easier for care to be consistent and continuous during this time of change. Probate is the judicial process which sees a Will validated as the true last testament of the deceased. During this period the executors take on responsibility for the animals. Often neighbouring farmers will happily act as executors to give help and guidance. To help facilitate this, it would be wise to ask if they would be on hand to assist to give an added layer of security for the farm.
Contingency plans, particularly to cover the probate period, ensure there is someone to look after the farm in the interim. The plan should include everyday aspects such as who will feed the animals, dealing with the regulatory paperwork for livestock and what to do if any get ill. If relatives are already involved in the farm, they can take a more hands-on role in maintaining the usual running of the business. Another crucial inclusion in the contingency plan is how bills and staff will be paid. This is particularly important if a farmer is a sole trader as everything relies on them ensuring processes are running smoothly. Understanding banks may agree an overdraught facility in the short term to enable the executor to continue to pay for the upkeep of livestock. Having a joint bank account with a partner, even if they’re not involved in the farm, allows funds to continue to be accessed post-death. For farms run through a partnership, if there is no written partnership agreement the death of a partner will mean an immediate dissolution of the business. This means any overdraft facility immediately ceases, which could result in a cash flow issue. No one knows their animals better than the person who owns them. Whether part of a farm or a family pet, they are a huge responsibility. While making provisions for those closest, providing for animals is vital too, as they will need immediate care. The most important element is planning ahead and ensuring clarity, speaking to those you wish to take over and organising assets and paperwork so it is easy for people to understand what is wanted and needed.
If your business needs help with: • Contracts and transactions • Diversification • Property purchase and lease negotiation • Equine law • Employment If you would like help with: • Family law and divorce • Residential conveyancing • Tax planning and trusts • Wills and estate administration
Contact us today Canterbury 01227 643250 Maidstone 01622 698000 Tenterden 01580 765722 enquiries@whitehead-monckton.co.uk www.whitehead-monckton.co.uk
J U LY 2 0 2 1 | W W W. S O U T H E A S T FA R M E R . N E T
No matter if an animal is seen as a pet or part of the farm business, communication with those who will succeed a farmer in looking after the animals is crucial. It’s vital to ensure whoever takes over the farm, or takes on the pet, is comfortable in doing so to avoid a person feeling trapped or an animal being left with no care.
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