A Family Agricultural Trust is a type of trust that is specifically designed to hold agricultural assets that qualify for Agricultural Property Relief (APR). APR is a tax relief that reduces the value of certain agricultural property when calculating the Inheritance Tax (IHT) liability on an estate.

The trust is established outside the Will and is typically referenced in the Will through an Agricultural Clause. The assets are settled into the trust while the settlor is alive, but the trust is usually not created until after the settlor's death.

Multiple Family Agricultural Trusts may be required to be the most tax efficient. Each trust would want to receive less than the IHT Nil Rate Band. By placing agricultural assets into the trust, the value of the assets will be removed from the settlor's estate and can be protected from IHT. The trust assets can be managed by the trustees for the benefit of the beneficiaries, who can include family members, employees or others with a connection to the farming business.