Solicitors in St Albans

Revenue Challenge to Inheritance Tax Planning

2007-09-21T10:50:00.000+02:00

Revenue Challenge to Inheritance Tax Planning

Many of you will have seen recent press reports of HMRC Special Commissioners’ decision in the Phizackerley case. The Revenue successfully argued that a Loan Note arrangement set up on the death of the first spouse under the “Nil Rate Band Discretionary Trust” arrangements, was not deductible from the estate of the surviving spouse for Inheritance Tax purposes because the surviving spouse had, prior to the death of the first spouse made a gift of all or part of the value of the main matrimonial property to the first spouse to die and the debt was therefore not deductible under the “anti-avoidance” rules set out in Section 103 of the Finance Act 1986.

Whilst this may be good law on a strict interpretation of those provisions, the decision appears to run at odds with matrimonial law in the sense that in this case the Revenue looked only at financial contribution rather than other contributions to the marriage. Nevertheless, there must therefore be some doubt as to whether or not, in all cases, the Revenue may seek to argue there has been some element of gift in relation to the matrimonial property, or indeed other assets, and that the Loan Note is therefore not deductible. This arises because in the Phizackerley case, the Loan Note had been given by the surviving spouse who, it was held, had made the gift in favour of his spouse in her lifetime. If, therefore, the Loan Note is deductible but not given by the surviving spouse, it should still serve to reduce the value of the survivor’s estate for Inheritance Tax purposes. We are therefore recommending that in all cases where a Nil Rate Band Discretionary Trust is relevant, the residuary estate is given to Trustees to hold upon trust for the surviving spouse for a Life Interest with the property passing on the second death to the chosen beneficiaries so that the Trustees of the residuary estate who give the Loan Note to the Trustees of the Nil Rate Band Discretionary Trust.

We would therefore recommend that anyone who has a Nil Rate Band Discretionary Trust arrangement should review their Wills and if there is any doubt, contact us to see if any changes are necessary.

Unfortunately, the family in the Phizackerley case are not expected to appeal the decision and so it is essential that professional advice is taken in relation to these complicated and important matters and we would be delighted to assist in any particular case. For further information, please do not hesitate to contact Nicholas Turner, the head of our Private Client Department.

ENDURING POWERS OF ATTORNEY - St Albans based solicitors Turner & Debenhams

2007-09-21T10:48:00.000+02:00

ENDURING POWERS OF ATTORNEY –The law is changing on 1st October 2007 – don’t miss out – ACT NOW!

Who will look after your affairs if you are not capable of doing so yourself? Don’t make the mistake of thinking that your loved ones will be able to manage your finances for you if you lose your mental capacity for any reason – they can’t (not even if you are married) unless you make provision now.

Traditionally, an Enduring Power of Attorney (EPA) could be prepared for you by your solicitor, and it would enable you to appoint the person you want as your Attorney, to deal with your money for you if you should become incapable of dealing with it yourself.

The EPA could be a very valuable document because it could also be used, with your authorisation, by your Attorney to enable him or her to manage your finances for you if you could not do so due to any other type of illness or accident, or if you were out of the country, or simply did not want the trouble of dealing with your finances.
However, the Government is changing the rules, and from October 2007 you will no longer be able to make an EPA. Instead, it is being replaced by a new document called a Lasting Power of Attorney (LPA).

The LPA is intended not only to cover your property and finances, but to include personal health and welfare. As a result it will be a longer and more complicated document, which will inevitably mean that it will be more expensive to put in place. In addition, unlike the EPA, the LPA must be registered with the Office of the Public Guardian before it can be used. The anticipated registration fee is £150.00.

Existing EPAs and EPAs which have been signed by the donor and all attorneys on or before 30th September 2007 will continue to be valid after the October deadline. Our advice, therefore, to those who do not currently have an EPA in place is to act now, and to make an EPA before it’s too late!

For further advice and information, please contact St Albans Solcitors Victoria Bridel on 01727 735646 or via email to vb@turnerdebs.co.uk.

New Solicitors and Trainee Solicitors

2007-09-21T10:47:00.000+02:00

New St Albans Solicitors and Trainee Solicitors

The firm is pleased to announce that two of our trainee Solicitors, Mark Stephens and Susannah Williams qualified as Solicitors on 3rd September 2007. Mark and Susannah will join the firm’s Private Client department specialising in Wills, Probate and the Administration of Estates.
Nicholas Turner, Head of the Private Client Department said “I congratulate Mark and Susannah on their terrific achievement. They have already proved their value to the department in the skills they have shown and the helpful and sympathetic way they have dealt with our clients. This is often thought to be an unfashionable area of practice but Mark and Susannah have both appreciated how satisfying it can be and how vital it can be for the planning of the client and their family. I am delighted they have both chosen to join my department following their qualification”.

As Mark and Susannah qualify, the firm is pleased to welcome four new trainee Solicitors, Neil Mercer, Kate Greenwood, Sandeep Burman-Roy and Michael Kerrigan. Over the next two years the new trainees will spend time in all of the firm’s departments before deciding on a particular area of practice. The firm has become well respected for its training and investment in staff so as to ensure that clients always receive the best possible level of advice and service.

St Albans Solicitors Training Contract Applications go live

2007-09-21T10:45:00.000+02:00

Training Contract Applications go live

Turner & Debenhams, St Albans Solicitors. Applications are now invited for Training Contracts commencing September 2008. Please get you application in by the end of September 2007. See the "Careers" section for further information. Click here to go back