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The role of the farm executor

Julie Butler considers executorship and what ICAEW members can do. She outlines cessation of trade, losses and stock, ICAEW guidance, proprietary estoppel and will claims and will drafting.

Farming estatesThere are a number of things to consider when appointing an executor for a farming estate and when the executor is carrying out their duties. For example, there may be risks where there is a need for an executor to continue the farming trade while an estate is in the administration period. And one aspect of tax planning before death is to understand what pressures could be placed on the executor.

A trade is normally treated as ceasing on death, but if the executors continue the trade in order to bring estate matters to an orderly conclusion, the trade is treated as continuing (there is more detail about this in the Business Income Manual at BIM80570). The trade is not deemed to be continuing if the beneficiaries take over. An example of where this often happens is a farming business.