Roadchef is a straightforward application of Hastings Bass to an EBT, finds Marilyn McKeever ‘This sorry tale is a reminder to the trustees of employee benefit trusts, pension schemes and, indeed, family trusts that they have onerous duties which they must exercise in the interests of their beneficiaries.’ In the case of Roadchef (Employee Benefit …
Continue reading "Trusts: Trust comes first"
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Mary Ashley examines the lessons from Jersey case In the Matter of the Strathmullan Trust [2014] ‘It was not in dispute that the representor had chosen to create the trust in order to avoid attracting a liability to IHT. His affidavit confirmed that he moved to the Isle of Man and established the trust with …
Continue reading "Trusts: Dealing with mistakes"
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Jason Nickless describes how trusts were applied to resolve the dispute in Wise v Jimenez [2013] ‘Mr Jimenez gave a number of different accounts as to precisely how [the] moneys had been invested. After analysing the evidence, the court was satisfied that the purpose behind the investment of the moneys had not been fulfilled’. On …
Continue reading "Trusts: In the commercial sphere"
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Anna Moore discusses the pros and cons of the recent HMRC consultation paper on the simplification of tax for trusts ‘It is clear that trusts where the settlor has relatively straightforward arrangements are more likely to benefit from the changes and that the calculation in relation to older trusts or more complicated arrangements is more …
Continue reading "Trusts: ‘Relaxing’ the HMRC way"
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Martyn Frost discusses an important point on reserved instrument activities arising from the Legal Services Act 2007 ‘My conclusion is that the provision of trust deeds was intended to be a reserved legal activity and that the Legal Services Act achieved that aim.’ There is a puzzling, but important, issue on the interpretation of a …
Continue reading "Trusts: Who prepares the trust deed?"
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Wills & Trusts Law Reports | October 2013 #133The claimants purchased a property in Cornwall in 1999. Their intentions were to create a discretionary trust of which they were to be the initial trustees, in favour of a class of beneficiaries consisting of their children and grandchildren and any further person or class of person nominated by the trustees. It was also intended that they should both be excluded from any possibility of benefit under the trust for inheritance tax reasons. In particular, they were concerned that there should be no reservation of benefit within the meaning of s102(1)(b) of the Finance Act 1986...
Emma Jordan and Patricia Boon assess the impact of the US’s FATCA on trusts ‘The introduction of FATCA may be seen as part of the continued development towards achieving a “white list” standard of tax compliance internationally’.The US government published the final regulations under the Foreign Account Tax Compliance Act (FATCA) in January. The following …
Continue reading "Trusts: Clamping down"
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Huw Miles analyses issues of evidence regarding complex trust and corporate entities as highlighted in the decision of CR v MZ ‘It was the conveyancing solicitors who apparently advised that it would be “more efficient” to put the property into a company. The file contained no explanation of that advice and it did not in …
Continue reading "Trusts: Trust issues"
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Kate Buchanan reviews the key points of the Trusts (Capital and Income) Act 2013 The reforms introduced by the Act address areas of law that have long been problematic to trust practitioners and are therefore to be welcomed.The Trusts (Capital and Income) Act 2013 (the Act) received royal assent on 31 January 2013. The Act …
Continue reading "Trusts: Welcome change"
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Wills & Trusts Law Reports | April 2013 #128B had created the W Settlement (the trust) in 1989 as one of a number of settlements created for the benefit of B, his three sisters, their issue and their remoter issue. As the settlor, B and any wife of his were expressly excluded from benefit under the trust (but not from the other family settlements).
B and his wife Q had been involved in divorce proceedings before the Family Division of the High Court (the English court) for three years. It was considered that the trust’s value (some £2.5m based on publicly available information) greatly exceeded the other settlements&#...
