Succession and sustainability: concerns vital to families and family enterprises alike
When I first went deer stalking, it was with my father-in-law on land that has been under his family’s care since the 19th Century, writes Tom Ham who is Group CEO at financial planners Calton.
Back then, it was his place – now my sister-in-law is laird.
Originally a sheep farm and a sporting grouse moor, activities on this Perthshire estate have evolved over the decades into forestry, renewables and holiday accommodation. This kind of diversification is commonplace across rural Scotland, where farms and estates are now complex business entities as well as social and natural ecosystems.
Less common, perhaps, is how the family estate came to be under my sister-in-law’s stewardship while she was just in her 30s. From her siblings, she was the natural successor, diverting the traditional pattern of inheritance from father to son. She’s taken on a life’s work, a commitment not just to herself and her family, but to those who work on the estate, the local community, and the broader public.
With two daughters, the female line of succession is secured for the next generation, should they wish to continue her work.
Estates are family businesses and this is all very close to my heart, not least because of the times that I’ve spent helping with gathering sheep on the hills, stalking and generally getting under people’s feet, or when the whole family comes together there. Of course, there are hard moments, too, when tough decisions have to be made. Lives and livelihood are wholly intertwined, just as it is for me in my own business.
When I started Calton, I wanted it to operate on the values of caring for clients and staff as if they were family. It is a place for nurturing potential and helping people achieve their goals. I want it to be an example of something that lasts because it’s founded on the enduring and self-sustaining principles of accumulated expertise and consistently personal service.
Family businesses are complicated, especially when the questions “what now?” or “who’s next?” raise their heads. In terms of succession planning, it is vital to keep on top of the big picture, to understand how decisions taken in part may have consequences for the whole.
Trusted professional advice is crucial here, and getting an expert team together – lawyer, accountant, asset manager as well as your land agent –is essential. They can help advise on the consequences, risk and possible returns of schemes such as forestry or carbon credits.
The lure of the latter is an especially new and complex landscape with generational impact, because the terms of the deals on offer are often as long or even longer than a working lifetime. Generations to come will often be saddled with the effects of a decision taken now.
It’s crucial for anyone doing succession planning to cover the basics first – has the person or group handing on made sufficient provision for themselves for when they are no longer taking a fully active role in the business? Pensions are especially important for farmers and landowners as they hand over the reins. Everything should be done as tax-efficiently as possible. While there are many complexities requiring specialist knowledge, the basics are universal.
Sustainability may be a recently fashionable term, but it’s a concept as old as the hills. We wholeheartedly support the kind of good stewardship that has sustainability at its core. By making a plan, modelling its outcomes, and committing to its broad parameters you can make a go of it.
We are proud to sponsor the prize for Conservation and Sustainability in Sporting in the inaugural Scottish Game Awards this year. Established by the Game and Wildlife Conservation Trust Scotland, Scottish Land and Estates, and Scotland’s Regional Moorland Groups, the awards recognise the contribution of sporting estates, game dealers, gamekeepers, and ghillies in supporting people, jobs, and nature.
All too often the work of the teams on sporting estates is presented as directly opposed to conservation practices in ways that belie the lack of understanding between groups that have much in common.
Showcasing achievements in this field helps to bridge that gap.
The awards will be presented at the annual celebration of all things rural that is the Scottish Game Fair, taking place on 5-7 July at Scone Palace. Like the Royal Highland Show, this is a festival of country life where whole families gather in a rare holiday weekend to catch up, celebrate successes and have a roaring good time. I invite you to visit our stand to meet our team, our partners and clients, and raise a glass to the present and future of the countryside.
To find out more visit Calton’s website here.