This note is only an aide memoire of the changes to the intestacy rules and does not cover the amendments to the Inheritance (Family & Dependents) Act 1975 nor the trust changes which are included in courses offered by LawSkills Ltd.
Most of you will be aware that when Inheritance Tax trust taxation changed in March 2006 a practical problem arose of calculating the periodic and exit charges in relevant property trusts where there was no background information about the settlor e.g. in old accumulation and maintenance trusts.
The Disclosure of Tax Avoidance Schemes (DOTAS) system was introduced for certain taxes in 2006, the statutory framework having been included in the FA 2004. Inheritance Tax (IHT) was not included at the start. The objectives of the disclosure rules are to obtain:
Beryl Swetenham brought a claim against Alexander Bryce’s estate under the Inheritance (Provision for Family & Dependents) Act 1975 (IPFD 1975) on the basis that she and Alex lived together as husband and wife in the same household for at least the last two years of his life.
Both the Daily Telegraph & Daily Mail have run articles in August 2014 saying that savers could be forced to pay IHT while they are still alive under this new drive against tax avoidance. This might be true if there was a chargeable lifetime event which was seen to be avoided by a marketed and disclosable scheme
Mr Peter and Mrs Gill Andrews jointly settled a property on trust with the intention of benefiting their grandchildren and at the same time saving Inheritance Tax (IHT). Sadly, the financial adviser who organised it created a trust benefiting only one grandchild with no flexibility to override these provisions or benefit other grandchildren during the named grandchild’s lifetime.
This case revolves around the validity of a Will prepared by her sister for Valerie Watts who was in hospital dying of cancer.
Valerie Watts had two adopted children who were not themselves siblings: Christine and Gary. She made a Will in 1999 through Will Drafters Limited of Croydon leaving her whole estate between Christine and Gary equally.
The SRA regulates entities and recognised sole practitioners. Leaving aside the latter for the moment, as a regulator of an entity the professionalism of a group within the entity i.e. solicitors, is not what is solely at stake here. If the entity is to provide a competent service for clients then ALL personnel need to be competent.