B
Bankrupt beneficiaries – how to avoid negligence
09/01/2009
The recent case of Raymond Saul & Co v Holden [2008] EWHC 2731 has identified the need to conduct a Bankruptcy Search at the date of death and not just prior to a distribution to avoid negligently overlooking the payment of the entitlement to a bankrupt beneficiary’s trustee in bankruptcy.
Read the detailed description...
Bankruptcy - Cohabitants
12/02/2009
The sale of a property purchased as tenants in common in equal shares by two cohabitants was delayed for twelve years by the trustee in bankruptcy of one of them. Was it appropriate that the occupier, who had had to wait all this time to be given her share of the proceeds of sale, had her share reduced by ‘occupation rent’ payable to the trustee in bankruptcy?
Read the detailed description...
Bare Trusts
27/04/2009
If a settlor or testator vests property in trustees to be held on trust for a nominated beneficiary absolutely the trust is a simple bare trust. As there are no conditions attached to the gift the trustees can only hold it to the order of the beneficiary until the beneficiary is competent to give the trustees a valid receipt for capital monies.
It is therefore likely that a bare trust will be expressly granted in respect of gifts to children and chosen for tax purposes in relation to personal injury trusts and arise by operation of law in trusts where the life tenant has died and the trust fund now vests absolutely in the remainder beneficiaries but this has not yet been done.
Read the detailed description...
Bereaved Minor Trust
27/04/2009
Many Wills drafted before 22 March 2006 tried to ensure that gifts for children and grandchildren met the conditions for an Accumulation & Maintenance trust to ensure that no inheritance tax charges arose on the distribution of capital to the young person when they reached the specified age, usually 25.
The FA 2006 prevented the creation of new Accumulation & Maintenance trusts and introduced the concept of a trust on death for the benefit of the deceased’s bereaved minor children.
Read the detailed description...
Business Property Relief (BPR)
27/04/2009
BPR is a significant special relief for Inheritance Tax (IHT) which has the effect of reducing the value of business property before IHT is applied to the net value. It is subject to various conditions.
Relief under s. 104 IHTA 1984 is given automatically where it is due. It is given after Agricultural Property Relief (if that relief applies) and before available exemptions e.g. surviving spouse exemption. The benefit of the relief is obtained by making an appropriate deduction (with accompanying explanation) in the IHT 413.
