Welcome
The challenge of navigating succession and the effective transfer of wealth and assets to the next generation has perhaps never been more pronounced. Globally, around $100 trillion is set to be passed down to millennial and Gen X heirs over the next two decades, in what has been dubbed the greatest transfer of wealth in history and resulting in what has been described as an ‘inheritocracy’ (source: Ken Costa, The 100 Trillion Dollar Wealth Transfer).
The reality though is that this is nothing new. From King Lear’s decision to ignore primogeniture to the questionable fate of a large inheritance in Dickens’ Bleak House, succession has always been an acute concern for creators and custodians of wealth.
The owners of historic houses, landed and rural estates face particularly unique issues in this regard. And, with historic houses being a driver of more than £1 billion of annual economic value for the UK (source: Saffery and Historic Houses 2023), succeeding with succession is even more imperative.
This new research project by Saffery and Historic Houses is intended to shed light on these issues and to help inform decision-making when putting a succession plan in place.
The resulting report, based on the findings of a survey which ran from September to October 2023, unveils insights from over 140 respondents across the UK, highlighting the intricacies and challenges of succession planning for historic landed estates. Those surveyed included clients, contacts, Historic Houses members and peers who either currently own estates or are expected to inherit them in the future.
This research is the latest update in our analysis of succession issues, which began with our landmark succession report in 2005, followed by supplementary research in 2011. The shift in societal views in the intervening years is striking, and in this latest edition we analyse how these changes have impacted opinions and overall strategies when it comes to estate succession.
As well as outlining our survey findings, the report also includes the perspectives of Dr The Hon. Philip Sidney, whose family home has been Penshurst Place in Kent since 1552. He shares his own experiences of inheriting the estate and why getting a solid succession plan in place is now more critical than ever.
David Chismon, Partner and Head of Land and Rural Group, Saffery
“With more than 40% of owners currently having no plan or process in place to prepare the next generation to take on the estate, there is a fundamental risk facing some of the UK’s most significant properties, and the families who care for them. Our survey gathered responses from both current estate owners and the next generation, who were very open about their concerns and plans for the future. Interestingly, as families look to the future there is a real interest not just in keeping estates intact, but exploring new ways to keep them viable and value-creating for the long-term – including diversification into renewables and biodiversity. These land uses will clearly be important for estates in the future.
“Both in terms of general succession planning and establishing strategies for estate diversification, there is a clear need for managing expectations and good communication between family members. Mutual understanding and effective handover planning is a key first step towards achieving the desired outcomes for all parties.”
Ben Cowell OBE, Director General of Historic Houses
“Our new research highlights the importance of succession at historic houses and estates. Too often succession can be a battleground for the clash between the generations. But the survey shows some remarkable similarities of view, regardless of age.
“All generations can see that the future of historic estates depends upon diversification, with renewable energy and biodiversity foremost in the minds of owners and their successors.
“Nevertheless, there are some causes for concern. More than half of current owners have worries about the future. They are fearful about whether estates will continue to be viable once their chosen successors take over. At the same time, over two-fifths of owners have failed to put a clear plan for succession in place.
“The future is not always predictable. But we would always emphasise the importance for estates of addressing the succession issue, and developing a strategy and plan of action.”
Saffery LLP is a member of Nexia a leading, global network of independent accounting and consulting firms. Please see https://nexia.com/member-firm-disclaimer/ for further details.
Copyright | Legal | Modern Slavery Act Statement | Privacy Policy | Cookie Policy