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Planning for a Change of Circumstances in Farming

Have you, or will you in the future, receive a lump sum from the sale of your farm or farm land? Have you considered how your income will be affected should you choose to retire from farming? Have you considered the tax implications resulting from the sale? Goldstone Wealth have over 25 years of experience advising the farming community in these and many other areas.

The problem:  Sale of farm land causing loss of Agricultural Property Relief and a subsequent Inheritance Tax liability. Loss of farming income in retirement.

The benefit: Putting suitable plans in place to ensure that any investment provides an appropriate income in retirement whilst any Inheritance tax liability is mitigated

Suitable for:  Anyone receiving a lump sum from selling their farm or farm land

Ian and Jean, after over 40 years of farming, received an offer from a local farmer to purchase their farm. As Ian and Jean were close the age of 60 they felt it was a good time to enjoy some quality time together in retirement.

They were referred to Goldstone Wealth to see how they could generate an income from the £500,000 they were receiving from the farm sale. This income would be used to pay their bills in retirement in the new home they had purchased away from the farm.

After discussing Ian and Jeans needs and plans in retirement, and assessing their attitude to risk, Goldstone Wealth identified a number of additional areas to address. The sale of the farm, and the resulting loss of agricultural property relief, meant that Ian and Jean now had an inheritance tax liability to consider. Ian and Jean also had a number of old style pension plans and various investments they had put in place over the years which were out of line with their attitude to risk, and not in appropriate to meet their new needs and objectives brought about by their lifestyle change in circumstances.

Goldstone Wealth completed a full review and recommended a suitable investment portfolio using Individual Savings Account ( ISA ) and a joint General Investment Account ( GIA ) for the £500,000 lump sum as well as transferring some of their existing investments in to more suitable funds at a lower cost.

As the clients did not wish to give up control of their capital a whole of life policy was recommended on a second death basis which was written in trust for the children to cover any potential inheritance tax liability. The existing pension plans were reviewed and income taken from some very good guaranteed annuity rates within the plans to help boost Ian and Jean’s household income in retirement.

Goldstone Wealth also put in place a face to face “Value Service Proposition” annual review service with Ian and Jean to ensure that going forward any of their changing needs, objectives or attitude to risk, as well as regulatory changes, would be reflected within their new investment and pension portfolio plans.

Ian and Jean were delighted with the service they received and have already recommended that one of their friends, in the process of selling farmland, seeks independent financial planning advice with Goldstone Wealth.

Contact Goldstone Wealth today for all of your financial advice needs.

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