Estate transformation
The most pressing fear that estate owners have once an estate has passed to the next generation is its long-term viability as main driver of family income. This is followed by concerns around the estate staying within the family and fears regarding a forced sale of an estate/its assets to finance liabilities such as IHT.
Only 6% of respondents said they were concerned with ensuring their estate continued ‘as it was’
When coupled with the fact that estate owners are generally not concerned about the status quo of estates being maintained, effective diversification strategy is likely to become increasingly important (only 6% of respondents said they were concerned with ensuring their estate continued ‘as it was’ when they inherited on passage to the next generation).
We asked estate owners which potential diversification strategies they would be supportive of – whether in their lifetime or allowed for in their succession plan.
Unsurprisingly, there is clear interest from estate owners in strategies which align with the growing awareness of and concern for both climate change and nature preservation. With both the UK government’s net zero emissions target, as well as the 30by30 commitment to nature recovery, there are both regulatory drivers to transform land usage, and economic opportunities. These include, not least, carbon credits – with natural capital such as woodland and peatland vital carbon sinks – as well as the newly implemented Biodiversity Net Gain scheme. Both of these are potentially valuable new income streams which landowners can unlock.
Diversification strategies supported by estate owners
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