Matthews v HMRCC

Wills & Trusts Law Reports | January/February 2013 #126

The late Mrs Matthews (D) invested approximately £95,000 in a Building Society account with her son, the claimant, John Matthews (M) in 1999. The words ‘either signature’ were included in the special instructions for operation of the account. Between 1999 and 19 January 2007 when D died there were no withdrawals from the account and both D and M included half the interest on their tax returns. M claimed that D intended to make an immediate gift of the moneys in the account to him on the date it was opened and that he could have used that money for what ever purpose he wished,...

Watkins & anor v HMRC [2011] UKFTT 745 (TC)

Wills & Trusts Law Reports | May 2012 #119

The appellants were the personal representatives of Mrs Kathleen Mary Watkins (the deceased) who died on 18 March 2006 aged 91 years and one day. On 21 December 2004, when she was 89 years and 9 months, the deceased settled her 50% interest in a Royal Skandia Collective Redemption Bond obtained for a premium of £340,000 (the settlement). The deceased’s sons David and Keith were appointed as trustees of the settlement.

The settlement was divided into two funds, ‘the settlor’s fund’ for the absolute benefit of the deceased and ‘the residual fund’ ...