It’s that time of year again, when we all look to the future and hope that the coming year will be better than the last. Let’s face it, after the last couple of years, it won’t take much for this one to be better for many people.
As is traditional at the beginning of a new year, many of you will be making new year’s resolutions – perhaps to go for a daily walk, to lose a little weight or complete ‘dry January’.
Every year is the same, we make the resolutions and the majority are forgotten about before January is through.
Perhaps this year is the year to take a different approach. Rather than making the usual resolutions – let’s face it, ‘usual’ and ‘normal’ are perhaps mystery concepts to us now – what about resolving to put your legal affairs in order?
What do I mean by that? Well, it will very much depend on your own circumstances and those of your nearest and dearest. When I started writing this blog, it was with farming families in mind, but the principles apply equally to anyone (so don’t stop reading here if you aren’t a farmer!).
When I talk about putting your legal affairs in order, what I really mean is consider what legal protections you could have and what you actually have at the moment. Do you have any protections? If you do, are they up to date or do they need re-visiting?
Here are a few things to consider:
Wills
Do you have one? If you do, great! But when was it made? Have your circumstances changed since it was made? It is worth re-visiting your Will to see if anything needs to be changed as a result of life events.
Have a discussion with your solicitor about your current circumstances and they will be able to advise you as to whether you might want to consider making any changes to your Wills.
It may just need a codicil (a short addendum to your existing Will), it might require a complete re-write or it may be absolutely fine as it is. Whatever the position, the peace of mind that you will get from knowing that things are (now) in order will be far more rewarding than any failed resolutions you may have made in the past.
If you don’t have a Will, now is the time to make one. Doing nothing may be a suitable option for you, but it rarely is. Making a Will can give you reassurance that your assets will end up where you want them to be and your family can deal with your affairs much more quickly in the event of your death.
Property
If you own a property, whether your home or a business asset, there are a number of things to consider.
First of all, is the title registered with the Land Registry or do you have an unregistered title? Properties with unregistered titles are more susceptible to property frauds. Getting your title registered could help protect your asset for fraudulent activity.
If your property is registered with the Land Registry but you don’t actually live there, or you don’t have a mortgage, consider registering with the Land Registry’s Property Alert service. Signing up is quick and easy and means you will get email alerts about activity connected to your selected properties.
Imagine the peace of mind that you will get knowing that you have taken steps to try to protect your property interests.
If you do own property which is a business asset, is it occupied by someone else? If so, check whether you have a written tenancy agreement. And if you do, check that it hasn’t expired or isn’t due for renewal. Even if the term still has a number of months to run, think about the renewal now so that you aren’t rushing to get things done at the last minute and you have time to properly negotiate any changes with the tenant.
If you don’t have a written tenancy, consider documenting the arrangements. It is much easier to deal with written tenancies than unwritten ones as both parties can clearly see and understand what is expected of them. Unwritten tenancies can lead to problems when the two parties have different views about what they have agreed (which can sometimes be many years ago).
Farming business
If you are a farmer, there is a good possibility that you work with members of your family. The point that I make about Wills above is relevant to all family members, particularly where assets might be held by family members personally but are used by the farming business. Perhaps now is a good time to persuade everyone to review their Wills to make sure that you are all working towards the same common aim.
How do you operate as a business? Are you a partnership or a limited company? Does your existing structure work for you now? You may have been a partnership because that is what was right for the business 20 years ago, but is that still right for you now? Speaking to your accountant might reveal that it is, or they might suggest that you need to review your business structures to better protect your business or make tax savings.
A high proportion of family farming partnerships do not have a written partnership agreement. I wish I had £1 for every time I had been told that a partnership agreement isn’t necessary as all of the family get on well with each other. Hopefully, that will always be the case, but sadly we do encounter situations where families have fallen out and working together is no longer possible. Having a written partnership agreement in place can help to make situations like these less difficult for all involved.
Have you actually sat down and looked at how your business is performing and what impact the transition from EU payment structures to the new domestic payment structures might be? Have you considered benchmarking the performance of your business to help identify efficiencies? I appreciate that this is not a legal issue, but all the same it is something that you may wish to consider.
If you need any assistance with benchmarking or the effect of the transition, we can put you in touch with our friends at GSC Grays, who have been awarded the contract from the Agriculture and Horticulture Development Board (AHDB) for Yorkshire, the North East and Cumbria to deliver part of the Future Farming Resilience Fund, which includes farm business consultancy services and is absolutely free of charge to recipients.
Employees and workers
If you are running a farming business you may well have people that work for you either on a full-time basis or perhaps seasonally, depending on the type of farm that you operate.
The rules about employees and workers can be complicated. Do you know that you need to give all workers (not just employees) written details of their terms on day one? Do you even know that there is a difference between an employee and a worker? If not, ask your solicitor to explain this to you. It might just give you the reassurances that you need or it might highlight that you need to make some changes to your working practices.
Health and Safety
Do you have a written health and safety policy in place? Do you undertake risk assessments for your business? You may have answered ‘yes’ to both of these questions, but when were they last done? It might be time to get out the policy or the risk assessment and consider whether they need updating.
Powers of Attorney
You may never have heard of powers of attorney or you may be someone that already has one. There are different types of powers of attorney which can be used in different circumstances, but essentially they will allow someone else to act on your behalf if you are unable to do so, usually through incapacity, but they can also be prepared to cover a period of absence from the country, for example.
What would happen to the running of your business if you were unable to make decisions? Would your family be able to get access to your bank account if you were incapacitated?
Whilst ultimately you may decide that you don’t need a power of attorney, it is worth discussing the options and benefits with your solicitor, as none of us know what the new year (or future years) might bring for us.
Succession plan
I know, I said make a resolution that you can stick to. Yes, I know how difficult succession planning can be, but I couldn’t leave this one out. This might not be a resolution that can be fulfilled in 2022, but perhaps this is the year that you start those discussion with the family…
Next steps
So, you will see that there are lots of ways that you can make and keep resolutions regarding your legal affairs. Some are easier than others and not all of them may apply to you but do spend some time considering what you can do to ensure that you go forward into 2022 in the best possible position that you can.
Here at Jacksons, we offer the Legal Health Check Questionnaire which is a ‘legal health check’ for the farming family and their business. It is an opportunity for your family to have experts look at your current position and to highlight any areas where you may wish to consider taking action to better protect yourselves. By asking you and your family to complete a questionnaire about all aspects of your personal and business affairs we can assess your replies and identify any areas of potential concern. This initial review is carried out absolutely free of charge, on a no obligation basis and includes a report setting out our recommendations that you and your family may wish to consider.
Jacksons is one of only 16 firms appointed to the NFU’s legal panel. NFU can offer members who subscribe to their Legal Assistance Scheme a contribution towards the cost of up to six pieces of work that might be required as a result of the initial review.
So, all that is left to say is, start 2022 in the right way and take the first steps to securing your and your family’s future.
