Purchase Woodland - A Trust?

[Woodsman]

My elderly cousin is willing to fund the purchase of an area of woodland, perhaps around £150,000 so that I can create a quiet wildlife haven for use by the family in perpetuity and in memory of his deceased wife. How can I best achieve this so it can be passed from generation to generation without Inheritance Tax or other problems? I accept that there may be an initial Inheritance Tax payment unless he lives for another 7 years.
I did consider creating a charity to whom he could gift it but the issue of "public benefit" makes it a bit complicated. Is some form of "Trust" a possibility? Who would "own" the freehold? The idea is that the wood will never be divided, developed or sold, just maintained for our enjoyment. Thank you for listening.....

[Sam101]

It could be worth having a chat to The Wildlife Charity to see if they would accept a gift of Woodland that would be part of a Trust in perpetuity. It sounds like the sort of idea that they would welcome as long as your Cousin was happy with the arrangements. If so, then the gift to Charity has no taxation and may in fact reduce a future liability to Inheritance Tax if his estate were in that area.

[Woodsman]

Thanks Sam101. The problem with gifting to another charity is the loss of control. It is important to at least have the "feeling" of ownership even though that may be slightly fictitious.

Other countries have "Conservation Covenants" whereby you can sell the freehold but bind the purchaser and all future owners to a form of positive action, that does not really work here.
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The best idea I can come up with, and I keep coming back to it, is to create a new charity following the Charity Commission CIO "Foundation" model (a bit like a ltd company). That requires them to approve the existence of the new charity of course, they may not, even though our intentions are honourable, that would scupper that idea at a stroke.

With my rose tinted spectacles I would envisage first creating the charity. My cousin then gifts a large sum of money to the charity. The charity then purchases the woodland freehold from the farmer. The farmer and my cousin could both be Trustees which will give them involvement and a part to play and the terms spelled out in the constitution will be binding forever. It would mean that the money spent purchasing the woods is now gone and can never be brought back into the family but financial gain was never the intention. If the charity were to be "wound up", the woodland, as a significant asset, would either have to continue in the hands of another charity with similar purpose or sold and the proceeds gifted to another charity. In reality it would continue but with fresh Trustees.

[Sam101]

Have you TRIED to ask another charity. There may be a way that your Cousin can be involved. Or the Charity may know exactly how this would work the way you wish. In any event you may gain a little more knowledge that helps.

If you don't try you may miss out on loads and loads of worry and work. If they say no , then you can have the work and worry ??

[Woodsman]

Yes, that is good advice. I am on it now......


Latest....
I have just heard from the farmer that he has changed his mind and is no longer interested in selling.....
A pity, it would have been good for everyone concerned but such is life.