Farming News - Dementia diagnosis raises risks for farming families
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Dementia diagnosis raises risks for farming families
A dementia diagnosis can create complex legal and practical challenges for farming families, affecting everything from bank accounts and subsidy claims to livestock management and the day-to-day running of the business.
Philip Whitcomb, a private client solicitor at national law firm Clarke Willmott LLP, says that, with around one million people living with dementia in the UK, farming businesses can be particularly vulnerable where finances, compliance and key business decisions rest with a single individual.
"When a farmer is diagnosed with dementia, understandably the immediate focus is on their health and wellbeing," said Philip, who specialises in advising farmers, landowners and high net worth individuals on trusts, capital tax planning, wills and farming partnerships.
"However, it is equally important to consider the legal and business implications, particularly where that individual is responsible for managing the farm's finances, regulatory obligations and operations.
"Many farming families are unaware that relatives cannot automatically take over business decisions. Without the right legal arrangements in place, bank accounts can be frozen and key farming operations disrupted.
"The position can also vary depending on how the farm business is structured, so it is important to check whether arrangements for a sole trader, partnership or company still work if someone loses capacity."
A diagnosis can have wider practical implications for farming families. Driving, machinery use and firearms licences may all need to be reviewed.
"Putting arrangements such as Lasting Powers of Attorney (LPA) in place early, including considering whether a separate business LPA is appropriate, can avoid significant difficulties further down the line," added Philip.
"It's worth thinking about how the farm would keep running if someone was suddenly unable to manage things.
"That means making sure the right people can access key information, including details of grants, bank accounts, animal records and other regulatory requirements, as well as having a clear contingency plan for the practical running of the farm.
"Every farm operates differently, but early planning can help ensure the business continues to run smoothly while protecting the interests of the individual, their family and the long-term future of the farm."
Clarke Willmott is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton and Taunton.
For more information visit Agricultural Solicitors - Agricultural Law - Clarke Willmott