Estate succession when the next generation isn’t ready to step in

The landed estate and rural sectors are experiencing significant change. Recent revisions to Agricultural Property Relief (APR) and Business Property Relief (BPR) have prompted many families to reassess their ownership structures.

Over the past 18 months, this has resulted in a wave of gifts and transfers to younger generations as families seek to secure relief while it remains available.

While this approach has benefited many estates, it has also highlighted a growing challenge: what are the options for landed estates where the next generation is not willing, ready or able to take the reins and assume stewardship?

This situation is increasingly common and can create family tensions as well as potential legal and tax consequences. With the right professional guidance, there are practical and effective options available.

Why the next generation may be less involved in estate succession

Before succession planning can begin, it’s key to understand why successors may not be stepping forward.

Established careers and commitments elsewhere

Many potential successors have built successful careers away from the estate. Having invested years in a chosen profession, it can be difficult (both personally and financially) to pivot into estate management.

Lack of estate management experience or confidence

Without hands-on exposure to the day-to-day running of an estate, the role can feel daunting. A lack of practical experience often leads to a lack of confidence.

Geographic and lifestyle barriers

It’s common for successors to relocate for education or career development, establishing families and roots elsewhere. This poses a geographical barrier to the ability to take an active role in the estate, further driving away the idea of succession.

Perceived financial and operational pressures

Running a landed estate is both a financial commitment and a responsibility to the local community and employees, both of which can feel daunting to those not already involved in the day-to-day operations.

With these factors in mind, it becomes clear why succession planning may be put in the ‘too hard’ box – yet delaying planning could come with risks.

Insights from the next generation: perspectives on modern estate inheritance

These themes are echoed in our Succession Survey Report 2024, where Dr The Hon. Philip Sidney (heir to Penshurst Place) shares candid reflections on what it means to inherit a historic estate today.

As Chair of the Historic Houses Next Generation Committee, he notes that successors often balance demanding professional lives with the pressure of long-term estate stewardship, and may feel underprepared for the strategic and operational responsibilities involved. His experiences reinforce the importance of structured education, peer networks and professional support in building confidence and readiness for succession.

Read the full interview with Dr The Hon. Philip Sidney.

Risks of delaying estate succession planning

Increased exposure to inheritance tax (IHT)

With new thresholds affecting the availability of and BPR, it’s likely that doing nothing may result in a significant inheritance tax (IHT) bill on the death of the principal owner. For estates with limited liquidity, often seen in landed estates and farming businesses, this may result in the need to sell assets to fund the tax bill. This then has a knock-on effect on the future profitability of the estate, with income-producing assets often being sold.

Loss of APR and BPR relief due to inaction

Without proactive planning, the structure of ownership may prevent assets from meeting the conditions required for APR and BPR. This can result in unnecessary tax leakage.

For a deeper overview of the key considerations in transitioning family businesses, see our article on family business succession planning.

How professional advisers help families navigate succession challenges

While the absence of an obvious successor can be challenging, it’s far from unmanageable. Open, well-supported discussions facilitated by impartial advisers often reveal the underlying issues and pave the way for solutions.

Supporting the next generation to understand the estate

Advisers can explain financial, operational and legal position of the estate in accessible terms, addressing concerns and clarifying misconceptions. Sometimes a reluctance to engage stems from uncertainty rather than disinterest.

Determining whether active involvement is possible

Through discussion, it may become apparent whether the successor is:

• Hesitant due to lack of experience and confidence, but open to development,
• Committed to a lifestyle or career elsewhere, and
• Wishing only for passive involvement.

Developing education and mentoring pathways

If these initial discussions reveal the successor wanting increased involvement, advisers can help shape an education plan, whether through estate management courses, structured shadowing opportunities, or mentoring from other professionals.

Options when the next generation prefers passive or limited involvement

If the next generation prefers a more passive role, then a review of the estate structure is key, with the goal of long-term preservation underpinned by strong financial planning.

Appointing professional estate managers

Appointing an employed or outsourced estate manager separates ownership from estate management. This often provides commercial expertise, ensures regulatory compliance, and maximises industry opportunities the family may not be aware of.

Creating an estate board or governance structure

Larger estates are increasingly adopting a governance structure that includes family members, the estate manager and impartial advisers. Structured leadership allows successors to contribute to key decisions impacting the estate without day-to-day involvement.

Using trusts or corporate structures for flexible succession

Trusts or corporate vehicles can be used to separate control, ownership and management, offering succession flexibility, governance clarity and, in some cases, tax efficiency. Seeking professional advice early on is key.

How Saffery can help with succession planning

A less-involved generation is not a barrier to successful estate succession. It simply requires a departure from the traditional model, and this trend is becoming increasingly common in modern families.

What matters most is acting early. Proactive succession planning not only protects valuable tax reliefs, but also reduces uncertainty, minimises family tension and strengthens the resilience of your estate for generations to come.

If you’re beginning to consider your own succession journey – or if you’re already facing the challenges of a less active next generation – we’re here to help. Please get in touch to start the conversation.