By Michaela Schmidt -
Snapshot
- Never assume that, just because it’s farming land and your clients are related, section 274 of the Duties Act 1997 (NSW) will apply.
- Read the section carefully (and every time) especially if there are trusts, companies and super funds involved.
- Consider the ruling if an aspect of section 274 is unclear.
You had been acting for Bruce and Rhonda for twenty or so years and had been trying to push them to consider their succession planning. They were both in their early 80s and still working on their farm operated by their family trust, although illness and age have slowed them down quite a bit.
They have one daughter, Sally, who is married with five children and lives nearby on a property with her husband. Sally works five days a week on the farm doing most of the physical work and the admin these days.
Bruce had always been concerned about his son-in-law. He never really trusted him. He did not want to risk losing the farm.
When Bruce died almost 12 months ago, Rhonda regretted not sorting things out sooner, as now it was all left up to her to fix.
