An accountant has suggested to my client that he leaves his share of all farming partnership assets to a discretionary will trust, the beneficiaries of such trust being the Continuing Partners of the farming partnership both now and in the future. Partnership agreement makes no provision for the passing of partnership assets on death. The purpose of such a trust will be to ensure that the assets are available for the partnership to use and to protect the farming assets from being withdrawn by any retiring partner and subsequently being passed on to non-farming family members. The intention is for the farm to continue, although not very profitable. The partners would not be able to afford to buy out any non-farming family members should any farming assets be bequeathed to them.
Can anyone comment on the drafting of such a trust and the definition of beneficiaries of the same?
Many thanks
Sarah Husbands
Hatchers LLP