Probate – A Statistical Analysis

Each year the Probate Service compiles a statistical summary of its main activity, the issuing of grants of representation in England and Wales. Figures for 2009 have recently been released and this allows probate practitioners to understand the legal sector in a wider context.

© Simon Barber, Case Manager - Title Research

Transferring Foreign Shares - The end of an era

At the beginning of the year it was announced that our beloved chocolate brand Cadbury’s was to be acquired by US Food Company, Kraft.

On the 2 February all Cadbury shareholders were given an option to vote and agree with the proposed acquisition but I doubt whether shareholders, possibly like your client, were informed of the difficulties that this could cause when they wanted to sell or transfer their investment.

© Shazia Khan - Title Research

Open Government?

Now that we have the budget out of the way perhaps we can take a moment to reflect on one particular aspect of it.

I found it very disappointing the manner in which the capital gains tax issue dominated thinking almost from the date of the coalition agreement to the date of the budget.

© Geoffrey Shindler - Lane-Smith & Shindler

Should Farms and Estates use the advance clearance facility for Business Property Relief?

Current Position

There are a number of certainties that we do know about the majority of traditional farms and landed estates. Equally, the current HM Revenue and Customs (HMRC) approach to Business Property Relief (BPR) claims for Inheritance Tax (IHT) can be very aggressive. The current position is as follows:

© Julie Butler FCA - Butler & Co

Case Study: Is the Bahamas a risky investment?

Samantha Waller, Asset Valuation & Transfer Case Manager, talks about her most fascinating case to date dealing with seemingly “worthless” land in the Bahamas.

Local Man

My client, Elizabeth Brown of Brown & Company, is administering an estate where the deceased owned a plot of land in the Bahamas.

© Samantha Waller - Title Research

Development land values at death and the aggressive stance taken by HMRC

In the new world of compliance and penalties the practitioner needs to remind clients that the application of the ‘open market value’ rule for inheritance tax (IHT) on death requires valuations to properly take into account the ‘hope value’.

In order to understand IHT on development land values, the starting point is how should ‘hope value’ be calculated at the date of death? How is ‘hope value’ defined? Hope value is the difference between market value and agricultural value.

© Julie Butler FCA - Butler & Co

Unfinished Business

By now the election campaign is behind us and we might even have a new government, but there is some unfinished business. Am I alone in this world in wondering why three ex MPs and a Member of the House of Lords were able to persuade the Legal Aid authorities that they were worthy of support? I know they will have to repay the money if they lose their case but why do we have to support them in the first place? And they have the effrontery, or so I read from the popular and no so popular press, to base their defence on something called the Bill of Rights.

© Geoffrey Shindler - Lane-Smith & Shindler

Risk Management: Collecting, gathering in & administering Estates - How insurance can help

Jeff de-Rhune, a solicitor who manages the probate insurance account at the Zurich Conveyancing Underwriting Centre, considers the risks that PRs and their advisers have to manage and looks at some insurance solutions which can help.

Personal Representatives are under a duty to collect, gather in and administer according to the law, all the real and personal estate of their deceased. In many cases, this may be a straightforward exercise.  The chances are however, that readers....

© Jeff de-Rhune - Zurich Conveyancing Underwriting Centre

Protecting potential development value from IHT and CGT

It can be argued that all land and most buildings have a degree of potential development or “hope” value. There will always be some opportunity to “grow” more houses, improve buildings and convert barns etc. What protection can be put in place for both inheritance tax (IHT) and capital gains tax (CGT)?

© Julie Butler FCA - Butler & Co

Regulation and a Civilised Society

What are your tests of a civilised society? The way we treat our prisoners? The provision of regular refuse collection (leaving aside precisely what regular means in terms of days)? The efficient working of the U-bend in your house? But do you see the role of the regulator of professional and other services as being a key element in the civilised world as we know it?

© Geoffrey Shindler OBE - Lane-Smith & Shindler LLP

Modernising inheritance law - Law Commission consultation on intestacy

The Law Commission is currently undertaking a consultation reviewing the law of intestacy and family provision claims on death. David de Menezes, Marketing Communications Manager at Title Research, looks at the scope of the consultation and how the Commission is seeking to bring inheritance law up to date

The majority of estates are touched by intestacy. Even where the deceased has left a valid Will, its terms can be challenged via the Inheritance (Provision for Family and Dependants) Act 1975 if reasonable provision has not been made for certain family members and dependants.

© David de Menezes, Marketing Communications Manager - Title Research

Protecting farms post a flurry (or slurry!) of IHT cases - Arnander, McCall, Earl of Balfour

Farms and Estates are worth substantial sums of money which could result in large amounts of future inheritance tax liabilities (formerly known as “death duties”).   The Tax Office is trying to collect a large amount of tax through attacks on farms and diversified farm activities.

© Julie Butler - Butler & Co

Earl of Balfour

“Overall, mainly a trading activity” – shows the greater need for IHT protection, not less on a mixed estate.  Does the Balfour case suggest more protection is needed with regard to IHT relief for the mixed farming Estate or less?

© Julie Butler - Butler & Co

Do not underestimate the power and the importance of the District Valuer on any property visit

The District Valuer (DV) is not just the man who visits the property to check the validity of the Inheritance Tax (IHT) valuations; there is much more to the DV role.

© Julie Butler - Butler & Co

Back to the Future?

“Giving education to the poor … would be prejudicial to their morals and happiness.  It would teach them to despise their lot in life, instead of making them good servants … in laborious employment”.

Written in 1907, a mere 102 years ago.  Probably not the kind of individual who would be welcome as a member of the then growing Independent Labour Party or the well established Fabian Society.  We have moved on since then, but we have not solved the education problem (will we ever?).

© Geoffrey Shindler O.B.E. - Lane-Smith & Shindler LLP

French Revolution

Since 2006, Title Research has built an increasingly strong track record in France: we conduct genealogical and missing beneficiary research throughout that jurisdiction, and we also repatriate and transfer assets – e.g. houses, land, bank accounts or shares – to the UK.

© Louise Daubeny - Title Research

Opinion poll reveals major concerns over heir hunter fees

An independent poll commissioned by Title Research reveals significant public concern about the high level of percentage fees being charged by many probate research firms. Title Research is looking to the Law Society, Society of Trust and Estate Practitioners and the Institute of Legal Executives to advise probate practitioners to take a best practice approach when using heir locators, to ensure beneficiaries are charged fairly.

© David de Menezes, Marketing Communications Manager - Title Research

Why be a trust and estate practitioner?

What does the average client coming for advice from the average trust and estate practitioner expect of his adviser? Technical knowledge? Of course; if the client would have wanted a talented amateur to carry out his wishes he would either have gone to the golf club or the pub or alternatively visited his local library (if it still exists and has not been closed down because of cuts past, present or future), and taken out the ‘do-it-yourself’ guide book to trust creation and management. It always fascinates me that we think that the greatest skill we bring to our job is the technical knowledge we have.

© Geoffrey Shindler - Lane-Smith & Shindler LLP

Avoiding estate misdistribution

Title Research is primarily in the business of locating missing beneficiaries. However, another way of viewing this work is to say that we are in the business of managing risk for our probate practitioner clients and, by extension, for their clients, who are usually the Personal Representatives of the estate.

© Stephen Rigden - Head of Research, Title Research

Want to buy a wood?

Ownership of Britain’s woods and forests is split between the state (mainly Forestry Commission) and non-state roughly in proportion of 35:65. While there are a few publicly owned non-Forestry Commission woodlands (local authorities, MOD land etc), it is the private sector of many thousands of owners that has diverse holdings and diverse interests.

© Julian Evans

HMRC's Purpose, Vision and Way

One criticism that cannot be made of HMRC at present is its reticence to publish Consultation Papers.  Whether it takes any notice of the product of the consultation is another matter, but at least by publishing them we get to know first hand about their current views.

© Geoffrey Shindler

Probate Service statistics show a sharp decline in grants of representation

Each year the Probate Service compiles a statistical summary of its main activity, the issuing of grants of representation in England & Wales. This year’s summary raises serious questions about how the estate administration market is changing for probate practitioners.

© Stephen Rigden - Title Research

Probate research and the online revolution

Stephen Rigden, Head of Research at Title Research, looks at how digitised records have transformed the search for missing beneficiaries.

© Stephen Rigden - Title Research

Apportionment between Capital & Income in Trusts

According to WS Gilbert in “The Gondoliers”, “Quiet, calm, deliberation disentangles every knot”.

One of the unsung heroes of the legal world, and one which does a good deal of disentangling in a quiet way, is the Law Commission. It has now published its report Number 315, on the somewhat esoteric, but vitally important subject of the Apportionment between Capital and Income in Trusts.

© Geoffrey Shindler - Lane-Smith & Shindler

What makes a wood or forest a good investment?

Essentials to have in place

Whatever kind of woodland or forest is being considered there are some basics that must be in place to offer the potential of a good investment:

© Julian Evans

Banking Crisis - Approach to Regulation

A recent tabloid newspaper, but one of the highest repute and a paper of record, contained, in one issue, two articles on the current problems which our world faces namely the banking crisis and its consequences.

© Geoffrey Shindler - Lane Smith & Shindler

National Will Register Certainty Celebrates its 1st Birthday

Following its successful launch in March 2008, the Certainty Will Register celebrates a resounding success on its first birthday. Several hundred firms of solicitors are already on board as members and in excess of 750,000 Will registrations are already allocated.

© Nigel McGinnity & Rob Brown - Certainty

Commercial opportunities: Statutory will applications - Missing and unknown statutory next of kin

Where you’re acting as Deputy to an intestate Protected Person one possible commercial opportunity is to be involved in the administration of the estate, on the Person’s death. Having acted as Deputy, you’ll be intimately acquainted with the nature and whereabouts of the assets in the estate and, arguably, are the best person to administer it.

© Nick Beetham - Title Research

Is it worth investing in forestry?

We are living through exceptional times economically and financially and, perhaps inevitably, we caste around for alternatives for our money. And forestry is one such. Here, and in future contributions, we examine investment in woodlands and forests. Considering they occupy 12 per cent, or one-eighth, of Britain’s land surface, they are surprisingly neglected compared with investing in farming or in a traditional estate or other rural enterprises.

© Julian Evans

The law of unintended consequences

Look diligently as you can but you will not find a statutory reference to one of the most important laws that affect us - the law of unintended consequences.  How often have statutory good intentions been thwarted by consequences not thought about at the time the new law was enacted.

© Geoffrey Shindler - Lane-Smith & Shindler

Bona Vacantia Estates?

Commercial opportunities

These days, it has got to make sense to become involved in as many commercially viable estate administrations as possible. With increased competition and PRs looking to save money wherever possible, practitioners might like to consider the following often overlooked opportunity.

© Nick Beetham - Title Research