The farming child's position
The child who works the farm has legitimate concerns that succession planning must address. At the same time, the farm must continue operating during and after the transition.
Recognising their contribution. Years of work, often at reduced wages, should count for something.
Securing their tenure. They need to know they can keep farming, not be forced to sell.
Protecting their investment. What happens if their marriage ends? Relationship property claims could threaten the farm.
Relationship property protection
If the farming child is married or in a de facto relationship, the farm could become relationship property. This means a separation could result in part of the farm going to their ex-partner.
Protection options include:
- Contracting out agreements (prenuptial agreements) between the farming child and their partner
- Trust structures that keep farm ownership separate from the relationship
- Careful timing of when ownership transfers occur
Our Relationship Property Guide explains these protections in more detail.
Operational continuity
The farm must keep operating during and after transition. Consider:
- Decision-making authority during the transition period
- Gradual vs immediate handover depending on parent involvement
- Parents' retirement income from the farm
- Insurance, health and safety, and compliance responsibilities
Siblings
Siblings have a legitimate expectation of an inheritance, too. Often, it is impossible to treat all children equally if a child is to keep farming. Wisdom and excellent communication is required.
Parents' position
Parents need security too. The succession plan must address:
- Retirement income from the farm or other sources
- Housing if the farmhouse transfers with the farm
- Ongoing involvement if they want to stay connected to the farm
"We help structure arrangements that protect both the farming child's future and the parents' retirement. Every family's situation is different, and we tailor solutions to your specific circumstances."