Accounting for Farm Estates - Beyond the Basics for Probate Professionals

Introduction

Accounting for farm estates is complex.Understanding of the will and how the farm trade continues post death.

It is a complicated time to value estates with the flat residential market and the demand for some types of farms and estates reducing. The quality valuation of the estate and understanding the complexities will be essential.

The role of strong executors and trustees is important to sort out farm irregularities and it must be decided how these are reported in the accounts and what is provided for.

Consideration for MTD for ITSA from 6 April 2026 and the interaction. Strong up-to-date digital recording of all transactions post death will be essential and a forensic understanding of the nature of the trade prior to death will be essential.

What You Will Learn

This live and interactive course will cover the following:

• The farm probate valuation - the starting point for the accounts together with an understanding of trading post death, the significance for inheritance tax (‘IHT’) liabilities and distribution of the estate
• The valuation of ‘hope’ on development - the irony of future development disposal for survival but high farm values
• Collecting in all assets and liabilities - the correct recording of uncertainty
• Uncertainty over IHT liabilities - the marginal areas, the lack of legislation and guidance on farming for the environment
• Accounts disclosure - what to include and what not to include - enterprise accounts, full disclosure is best
• Providing for changes - the difficult residential property market and the IHT
• The valuation of chattels and ‘farm junk’ - from the barn full of vintage tractors and the assets under nettles - how to record on death and moving forward
• Sale of estate assets to pay liabilities - the need for good property advice
• Work needed (suggested) before and after death - planning in advance
• The new £2.5million transferable allowance for IHT - understanding the maximising of relief with the potential for £5million
• The important distinction between capital and income in tax and inheritance terms
• Distribution statement for each beneficiary with clear detail of entries
• Executor deliberations over beneficiary disputes and how to avoid them and record them!
• Recent dispute cases - the role of executor and disclosure
• The importance of the partnership agreement and clear understanding on retirement, death and how this will impact on accounts

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.