Expert Perspective: Michael Graham, Director & Head of Private Client

In this interview with Director & Head of our Private Client Team, Michael Graham, we learn about Michael’s role in Cleaver Fulton Rankin’s Agribusiness sector team, his key advice for clients embarking on the development of a succession plan and gain insight into what Michael believes are the primary challenges and opportunities within the Agribusiness sector in Northern Ireland.

1. You specialise in advising clients on personal legal matters including trusts, tax and the administration of estates. Tell us about your areas of expertise in the Agribusiness Sector?

I have advised a large number of clients with profitable businesses, including agribusinesses. The bulk of my work involves helping clients to put in place appropriate estate planning measures, including preparing tax-efficient wills, enduring powers of attorney and quite often trust arrangements and corporate structures. We then assist with implementing the planning when the time comes, whether that be the administration of an estate or a trust. We also own and operate a trustee company, Cleaver Fulton Rankin Trustees Limited, which clients can appoint as an executor or trustee in their wills and trusts if they wish.

2. You have provided bespoke legal advice and services to clients in the Agribusiness Sector in Northern Ireland. Are there any stand-out matters or any key learnings you can share?

One thing which I have learned is that every client’s needs, whilst there may be some issues common to many of them, will be different. The important thing for clients to do is to have a clear idea of what they are hoping to achieve in the longer term and then we can essentially work backwards from that. Since life rarely turns out as expected, I am a great believer in building in as much flexibility as possible to any arrangements made.

3. What do you see as being the primary challenges and opportunities within the Agribusiness sector in Northern Ireland currently?

I have a real concern about the upcoming changes to agricultural and business relief from inheritance tax due to take effect from 6 April next year. I genuinely believe that the current government has not given the impact of these changes the necessary consideration, and by setting the 100% exempt limit at only £1 million they have clearly misunderstood what level of value is locked up in family businesses, particularly farming businesses. A great many of our clients are what is known as ‘asset rich, cash poor’ and there will be a real difficulty in finding funds to settle the tax liability due on the death of a business owner. Even though the government is proposing that the tax could be paid over ten annual instalments, interest-free, there is still the question financing those capital payments themselves. On a more positive note, there will be steps that can be taken to mitigate the potential tax liability but clients will need to start their planning much earlier than they would perhaps have done in the past.

4. If you could give one piece of advice to a client embarking on the development of a succession plan and its importance what would it be?

I have learned over the years that people rarely like surprises. For that reason, I would recommend that any client who is beginning the process of creating a succession plan should discuss their intentions with their intended beneficiaries. For example, it may be that the intended beneficiaries do not actually wish to run the business at all, in which case an alternative exit strategy would need to be considered. Also, if one adult child is involved in the running of the business and another is not, and the one involved in the business is likely to receive a greater share of the estate, whilst this may be perfectly rational on its face it may cause ill-feeling between siblings down the line. As with many things in life, effective communication is crucial.

 

Find out more about Cleaver Fulton Rankin’s Agribusiness legal services here.

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