The Q&A is based on the following assumptions: • resident non-domiciled (RND) had never been tax resident in the UK prior to making the loan to X • the loan was made out of non-UK situs property • X is an individual and is not resident in the UK for tax purposes • RND has claimed the remittance basis

It has been assumed that the trust in question is settlor interested for all tax purposes. Gift with reservation of benefit Generally Where a settlor retains an interest in property which they have gifted, the property will be treated as part of the donor’s estate. If there has been a gift with reservation of benefit and this benefit remains until the donor's death, the value of that gift will form part of the donor's estate for inheritance tax (IHT) purposes on death under the gift with reservation of benefit (GROB) rules. In the scenario described it is assumed from the facts given that the trust property is caught by the GROB

The pre-owned assets tax rules (POAT) and gift reservation rules The pre-owned assets tax (POAT) rules are contained in Schedule 15 to the Finance Act 2004 (FA 2004). They are complex and wide ranging. The POAT provisions were introduced to stop inheritance tax (IHT) schemes seeking to

For general information on how gains/losses on disposals by PRs during the estate administration period are treated, see Practice Note: Income tax and capital gains tax during administration. Formally, untaxed estate income and capital gains are to be reported under self-assessment on the Trust and Estate Tax Return SA900. However, for straightforward estates where the tax liability is relatively small HMRC adopts informal procedures to settle the tax affairs of the PRs. HMRC's approach to dealing with the income tax and capital gains tax (CGT) reporting requirements for deceased estates is set out in the Trusts, Settlements and Estates Manual from HMRC Manuals: TSEM7400 (Trusts, Settlements and Estates Manual). If the estate is a complex estate, the PRs will need to register

In broad terms, section 144 of the Inheritance Tax Act 1984 (IHTA 1984) confers relief from inheritance tax where property comprised in a person's estate is settled by their Will on discretionary trusts and within the period of two years after their death there is a distribution out of the settled property. IHTA 1984, s 144 Relief under IHTA 1984, s 144 is subject to the following conditions: • property comprised in the deceased's estate must be settled by Will. For this purpose, the property comprised in the deceased's estate falls to be determined in accordance with IHTA 1984, s 5 without the modifications which apply for the purpose of IHTA 1984, s 142 • property must cease to be relevant property. IHTA 1984, s 144 applies

The latest View from the President of the Family Division, Sir Andrew McFarlane, provides an overview of recent updates and ongoing initiatives within the family justice system. This edition covers a wide array of topics, including the relaunch of the Public Law Outline (PLO), the Pathfinder model for private children cases, transparency, judicial security, CAFCASS domestic abuse guidance, the Planning together for Children and Working Together for Children programmes, the express financial remedy procedure pilot, recent and upcoming publications from the Family Justice Council, a new resource from the Family Justice Young People’s Board entitled ‘Safe Family Time’ and the publication of the Toolkit for Judges Writing to Children. Additionally, it provides an update on the appointment of new High Court judges.

A specific legacy is a gift of particular property forming part of the testator’s estate at death. To be effective, a specific legacy must be part of the testator’s property at death and must be identifiable by sufficient description and distinguished from the testator’s estate generally. For further guidance, see Practice Notes: Contents of Wills—legacies and Payment of legacies. Executors have a duty to deal with the estate using the powers given to them in the deceased’s Will, and all relevant statutory powers. For further guidance on powers of executors, see Practice Note: Personal representatives—powers,

An executor derives his title and authority from the will of his testator. Therefore, the property of the deceased, including any right of action, vests in the executors on the testator's death. The clause in the Will which provides for the appointment of 'my solicitors … and no more than two of the partners' to be executors and trustees of the Will is not specific as to the individual solicitors to be appointed. In accordance with previous case law, the clause is likely to be viewed as

Where a Will appoints X, Y and Z of executors and trustees and X and Y obtained the Grant of Probate with power reserved to Z, Z will need to be retired as trustee of the ongoing trusts established by the Will unless the Will makes any provision to the contrary. Given that Z does not have the capacity to disclaim the trusteeship, it may be possible

Section 114(2) of the Senior Courts Act 1981 provides that: ‘where under a will … a life interest arises, any grant of administration by the High Court shall be made either to a trust corporation … or to not less than two individuals, unless it appears to the court to be expedient in all the circumstances to appoint an individual as sole administrator.’ So the

It is relatively common that where a Will is professionally prepared, advice will be given that it may be beneficial to have professional executors appointed, or appointed alongside a lay executor. There is good reason for such advice; the probate process can be stressful and emotionally draining, particularly

If a Will appoints ‘the partners, members or directors’ in a law firm/company, it is accepted in practice by the Probate Court that two of them may act on behalf of the body and that, if the body does not want to accept the appointment (ie ‘renounce probate’), two of the partners, members or directors may effect the renouncement on behalf of the body. However, the process and authority for decision making by members of the LLP should also be considered. The mutual rights and duties of the members of a limited liability partnership are usually governed