Tying the will maker's hands – testamentary contracts explored

It is commonplace in farming communities to hear stories of fathers saying to their sons, "one day all of this will be yours". However, without considered and appropriate estate planning, this intended result is often not achieved.

In addition to having a Will, many farmers incorporate testamentary contracts into their estate plans. These contracts aim to provide certainty for children who farm on land owned by their parents that the land will one day pass to them. The agreements between parents and children in these contracts may include:

• an agreement to make a Will;
• an agreement to include specific provisions in a Will (including gifting provisions);
• an agreement not to dispose with assets without the prior consent of all parties; or