The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Peter Gausden, Consultant Solicitor at Rowlinsons provides comprehensive and up to date tax information covering:
The Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975), allows certain categories of applicant to make a claim for financial provision from a deceased estate. In England and Wales there are no restrictions on a testator on the disposition of his assets by Will (known as ‘testamentary freedom’), but the I(PFD)A 1975 provides a fallback option for partners and dependants who feel that they have not been given adequate financial provision.
The detailed conditions which apply to such a claim and its likelihood of success is outside the scope of this guidance note. For more information on this aspect see Simon’s Taxes I4.442 onwards. This guidance note describes the inheritance tax consequences which follow when the court makes an order under the I(PFD)A 1975 to change the distribution of the estate as originally provided for by the Will or intestacy.
In this note, all references to ‘spouse’ includes a civil partner.
Most orders are made under section 2 of the I(PFD)A 1975 to award reasonable financial provision out of the net estate to the successful applicant.
The court has wide powers as to the type of provision it may award and the form it can take. The standard of provision will depend on whether the successful applicant is the spouse of the deceased or a person in another category of applicant.
In the former case, the provision is likely to be relatively substantial while in other cases it will be limited to the
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