A dementia diagnosis can leave farming families unable to access bank accounts or keep key operations running unless legal arrangements are put in place in advance, according to a solicitor at national law firm Clarke Willmott.

Philip Whitcomb, a private client solicitor at the firm, said farming businesses can be particularly vulnerable where finances, compliance and key business decisions rest with a single individual. He said the risks extend from bank accounts and subsidy claims to livestock management and the day-to-day running of the business.

Whitcomb, who advises farmers, landowners and high net worth individuals on trusts, capital tax planning, wills and farming partnerships, pointed to the around one million people living with dementia in the UK.

That figure is in line with research commissioned by Alzheimer’s Society, which estimates that around a million people in the UK have a form of dementia and projects the number will rise to 1.4 million by 2040. The charity says a third of people with dementia in England and Northern Ireland, and half of those in Wales, do not have a diagnosis.

“When a farmer is diagnosed with dementia, understandably the immediate focus is on their health and wellbeing,” Whitcomb said.

“However, it is equally important to consider the legal and business implications, particularly where that individual is responsible for managing the farm’s finances, regulatory obligations and operations.”

“Many farming families are unaware that relatives cannot automatically take over business decisions. Without the right legal arrangements in place, bank accounts can be frozen and key farming operations disrupted,” Whitcomb said.

“The position can also vary depending on how the farm business is structured, so it is important to check whether arrangements for a sole trader, partnership or company still work if someone loses capacity.”

His central recommendation is the lasting power of attorney (LPA), a legal document that lets a person appoint one or more attorneys to make decisions on their behalf.

“Putting arrangements such as Lasting Powers of Attorney (LPA) in place early, including considering whether a separate business LPA is appropriate, can avoid significant difficulties further down the line,” Whitcomb added.

Under government guidance on lasting powers of attorney, there are two types: one covering health and welfare, and one covering property and financial affairs. The second can be used to manage a bank account and pay bills.

The guidance says a person must have mental capacity when they make an LPA. Registration with the Office of the Public Guardian takes eight to 10 weeks if there are no mistakes and costs £92. An LPA made this way is legally binding only in England and Wales.

Whitcomb said a diagnosis can also have wider practical consequences on a farm, with driving, machinery use and firearms licences all potentially needing review.

On driving, GOV.UK states that anyone with dementia must tell the Driver and Vehicle Licensing Agency. It says a person can be fined up to £1,000 for failing to report a medical condition that affects their driving, and may be prosecuted if they are involved in an accident as a result.

“It’s worth thinking about how the farm would keep running if someone was suddenly unable to manage things,” he said.

“That means making sure the right people can access key information, including details of grants, bank accounts, animal records and other regulatory requirements, as well as having a clear contingency plan for the practical running of the farm.

“Every farm operates differently, but early planning can help ensure the business continues to run smoothly while protecting the interests of the individual, their family and the long-term future of the farm.”

Farming families have faced other questions over the future of their businesses this year. Changes to agricultural and business property relief were the subject of a High Court challenge over inheritance tax reforms in March, while dry conditions led NatWest to offer repayment holidays to farmers hit by drought in August.

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