A future-proofed legacy: Restructuring a landed estate in Wales

In 2020, Charles Russell Speechlys began working with a traditional rural estate in Wales, which comprises substantial land and property interests, traditional farming and woodland businesses, and diversified operations including holiday parks.

The estate needed help with a restructuring transaction to mitigate inheritance tax (IHT) exposure in the custodian’s personal estate, facilitate succession for his nominated heir and streamline decision making and dealings with third parties.

The custodian had previously been supported by a local firm of solicitors, but the transaction was large and complex, and he was advised to seek legal counsel from a firm with strong landed estates experience. Charles Russell Speechlys was already advising the estate on several real estate and private client matters in relation to its trusts, and it was subsequently appointed to advise on the restructuring.

We advised the estate on incorporating and appointing private limited companies to act as corporate trustees in place of retiring individual trustees; and transferring the entirety of the estate business to a newly incorporated Limited Liability Partnership (LLP) to operate certain business activities over the estate.

We also advised on re-financing the entirety of the estate’s existing borrowing (£10 million+) and making provision for the custodian’s non-heir to include identifying assets which should not be contributed to the new LLP and advising him as to the transfer of those assets to a new asset protective structure for her benefit.

The restructuring transaction required seamless coordination between five of our teams (UK Private Client, Private Property, Corporate, Banking and Employment) across all UK offices, demonstrating our ability to integrate cross-practice expertise to tackle complex challenges.

Key partners in our Private Client practice involved in the transaction included Harriet Betteridge in our Guildford office, and Tristram van Lawick and Katie Talbot in Cheltenham. They were supported by Hannah Ledwold, Senior Legal Project Manager, Advanced Client Solutions, in London, and a firm of chartered accountants that was appointed by the estate to provide independent tax advice.

“We have significant expertise in landed estates. We understand historic trusts and the drivers, values and priorities for clients of this nature – as well as the accompanying complexities.

Our Senior Legal Project Manager coordinated the teams, tracking documents, sorting meetings and agendas, and chasing the right people, so that our lawyers could focus on the job at hand.”

Harriet Betteridge, Partner