Is a Lasting Powers of Attorney essential for farmers?

Given that the average age of a farmer in the UK is 59, many farmers are actively working in their 70’s and 80’s. Whilst most enjoy a healthy lifestyle, no one can predict when an accident or mental or physical illness may strike.

If farm owner becomes unable to take an active role in the day-to-day activities on the farm, it can quickly face significant disruption and incur additional costs. This situation may threaten the farm’s viability in both the short and long term. In cases of significant incapacity, financial assets may be inaccessible, suppliers’ invoices may be unpaid, and employees may not receive their wages. This risk is particularly pronounced for sole traders, or partnerships without provisions in their partnership agreement for others to make financial decisions and payments.

A Lasting Power of Attorney (LPA) for Property and Financial Affairs allows a person to appoint trusted attorneys, who may be family members or professionals such as land agents, accountants, or legal advisors. Attorneys can be given authority to act jointly or to make both joint and individual decisions, providing flexibility, especially if one attorney is unavailable.

Attorneys can fulfil their duties on either a short-term basis, such as after an illness or accident, or in the longer term if the farmer’s capacity undergoes a significant change, such as due to a severe stroke or developing demrntia.

In the often hazardous environment of farming, where accidents are common, having an LPA in place alongside insurance protection is essential to minimise business interruption. In addition, as farm owners commonly continue to work in to their old age and may not retire for Inheritance Act planning purposes, mental capacity may become an issue.  An LPA provides added insurance in such situations.

Considering the potential risks and benefits, an LPA should be viewed as a worthwhile investment for any farmer looking to protect both their farm and dependents.

If you are looking to set up Lasting Power of Attorney and would like help from a Solicitor, take a look at our Lasting Power of Attorney page.

By Ben Davenport-Lawton Will, Trusts and Probate specialist based at our Runcorn and Sutton Weaver offices.

 

 

This blog was first published in the June edition of The Farmart magazine.