By Kate Austin
When an agricultural property client comes to one of my colleagues or myself for advice; whether it be on a property/land transaction, promotion/option agreement, partnership matter or Will/succession planning, one of the first questions we always ask is confirmation of who the client’s accountant and land agent are.
Obtaining input from all other professionals who also provide our clients with advice within their respective areas of expertise, is crucial to getting the right outcome on any matter. A client’s accountant and land agent will usually see the client more regularly than us, for annual accounts meetings, and to review the client’s farming and other business operations. I often say to my clients that I only become involved when there is something positive or challenging happening in their lives and/or businesses, rather than the undoubtedly more regular basis on which they see their other professional advisers.
At Arnold Thomson, when we are instructed by our clients to assist on the legal aspects of any of their matters, ranging from property or land transaction to succession planning, secured borrowing, putting a new partnership agreement in place, or varying the terms of an existing one to reflect any changes in circumstances, it is always important for us to involve all key professionals from the outset. This enables us to ensure that any course of action that we put together will be tailored to our client’s specific needs from a tax, legal and business perspective. Working together as a team on a mutual client’s behalf with other experts in associated fields, many of whom are known to us, means that what works for them from our legal standpoint, will more than likely also be the most tax efficient option, from their accountant or financial adviser’s view. Similarly, the land agent involved will be familiar with how the business works in practice, and any potential effect on agricultural subsidies as well as other grants currently claimed or available in the future.
Our standard advice, especially to our farming clients, therefore, is that although it may seem like a costly exercise to bring all your professional advisers for a ‘team meeting’, as it were, the cost will certainly be outweighed by the long term benefit of the bespoke advice which will be received to get the best outcome. I also find it very beneficial, where possible, to have such meetings at the client’s farm, as this provides the opportunity to gain a greater understanding of their business and landholding on site. For the aforementioned reasons, it is important that you keep all your professional advisors updated with all relevant plans or issues so that they are armed with the right advice from the outset. As I often say to my colleagues and other professionals I work with regularly – team work makes the dream work!
