Surplus income gifts and Inheritance Tax: are you fit for the fight?

27 February 2014

UK Inheritance Tax (IHT) is essentially a tax on capital at death but allowing unused income to accumulate over the years, in effect turning itself into chargeable capital, can increase a person’s IHT liability. It is a common misconception that one has to survive all gifts by seven years before the gift will be free […]

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Shall I compare thee to….a trust?

13 February 2014

Novelty is usually a quality to be applauded but not necessarily in the law. When drafting documents, the temptation is to follow the tried and tested route. I was reminded of this recently when I was asked to clarify what type of trust had been created by a will containing the phrase ‘To my trustees […]

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The latest on pre-nups

7 February 2014

Readers may be interested to read the following article from Teresa Cullen, our new matrimonial partner, about an important new development concerning pre-nuptial agreements. Prenuptial agreements (pre-nups) are to become legally binding, according to the report of the Law Commission, advance notice of which was given earlier this week. At the moment such contracts are not […]

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IHT related penalties: a warning for PRs and beneficiaries

5 February 2014

The recent case of Hutchings v HMRC [2015] UKFTT 0009 (TC) will be of interest to anyone acting as executor/administrator of an estate and anyone who is a beneficiary.  Like the sword of Damocles, HMRC was dangling a tax penalty of £87,000 over the heads of both the executors and one of the beneficiaries – […]

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