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Testamentary Capacity
03/03/2009
It is essential that a person making a Will:
- understands the nature and effect of its act
- the extent of the property to be disposed
- is able to comprehend and appreciate the claims to which he ought to give effect and he should have no disorder of mind which would upset those objects
Banks v. Goodfellow (1870) LR 5QB 549
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Transfer of Value
25/03/2009
The IHT legislation is built around the concept of what is a ‘transfer of value’ The main charging provisions state that a charge to IHT can only arise if there has been a ‘chargeable transfer’, which is a transfer of value which is made by an individual that is not an exempt transfer.
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Transferable Nil Rate Band
29/03/2009
In October 2007 the Government responded to a proposed Tory tax proposal to substantially increase the Nil Rate Band (NRB) to £1 million by introducing in the Pre Budget Report the concept of a transferable NRB (TNRB) between spouses and civil partners. This has had an extraordinary impact in that there has been a 25% decrease in the number of Wills prepared by solicitors and a concern exists about how people understand the way this change works in practice and who is eligible.
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Transitional Serial Interests
14/03/2009
The Finance Act 2006 completely changed the way in which trusts were taxed to inheritance tax. In particular it made a distinction between trusts which were special and all other trusts which are subject from 22 March 2006 to the relevant property regime.
A transitional serial interest (TSI) is an example of a special trust; that is one which is not taxed for inheritance purposes in the relevant property regime. To be a TSI it had to be an interest in possession trust which was already in existence on 22 March 2006 and the interest in possession is brought to an end after that date but it is not already a bereaved minor trust or a disabled person’s interest.
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Trust of Land
24/03/2009
Prior to 1 January 1997 co-owned land was held on trust for sale; from that date it is held on a trust of land. Trusts of Land & Appointment of Trustees Act 1996 (TOLATA) gives effect to the recommendations of the Law Commission concerning successive and concurrent interests in land. It abolished both strict settlements and trusts for sale in respect of land and substituted a unified new system of trusts of land.
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Trusts
08/09/2009
The trust is a uniquely English invention which has spread to many parts of the common law world. It may be created expressly during the Settlor’s lifetime or may be included in a Will, or it may arise by operation of law (implied) or as a result of the Courts assessing the behaviour of a person towards some or all of their property or that of another person (resulting or constructive trusts). There are special cases such as protective trusts, trusts created for disabled persons, trusts directed by Court order as a result of personal injury claims, pension trusts, charitable trusts – indeed, trusts of all sorts exist.
