Gift over meaning

See Q&A A client has been given money by his aunt as a gift. His brother has been given an identical sum. The brothers have decided to reserve the money for her care should it be needed, and they have prepared a Deed to record that understanding. Do the provisions of the Deed take precedence over their Wills (which leave their respective estates to their wives)?...

In this issue: Probate Elderly and vulnerable clients Spouses, civil partners and cohabitants UK taxes for Private Client HMRC Manuals updates Budgets and Finance Bills Digital assets and cryptoassets International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis®PSL community New and updated content Dates for your diary Trackers Latest Q&As Useful information Probate Court Funds Office reduces special and basic accounts interest rate Effective 12 June 2024, the Court Funds Office lowered interest across special and basic accounts. Rates on special accounts shifted from 6.00% to 5.25%, while basic accounts dropped from 5.00% to 3.94%. See LNB News 16/07/2024 55. For a roundup of key rates relevant to Private Client work, refer to Practice Note: Key interest rates—Private Client. Elderly and vulnerable clients Discrimination challenge over social care charging policy (R (YVR (a...

In this issue: Wills Court of Protection UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Budgets and Finance Bills Contentious trusts and estates Pensions, insurance and tax efficient investments International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis+® community New and updated content Dates for your diary Trackers Useful information Wills Llamas, legacies, and legalities—does a gift in a Will fail if the charity ceases to exist? (British Camelids Ltd v Brooke Hospital for Animals) Animal-loving conservationist Candia Midworth, who kept llamas on her Surrey farm, directed that her £1.9m estate be shared equally among a number of animal charities. By the date of her death on 8 April 2022, some of those charities had either passed their functions to successor bodies or disappeared entirely. British Camelids Ltd, as claimants,...

Variation of Will or intestacy after death—Q&As An instrument of variation can be used to alter how a deceased person’s estate is distributed under a Will or on intestacy. It is commonly executed by deed. To secure effectiveness—typically to obtain favourable inheritance tax (IHT) and capital gains tax (CGT) treatment under section 142 of the Inheritance Tax Act 1984 (IHTA 1984) and section 62(6) of the Taxation of Chargeable Gains Act 1992 (TCGA 1992)—certain formalities must be met. These include that the deed is in writing, contains the requisite statement applying the statutory provisions, is not made for any extraneous consideration, and is signed by all relevant parties, including the deceased’s personal representatives (PRs) where additional tax would otherwise arise. For guidance on deeds of variation, see Practice Note: Variation of Will or intestacy after death. See also Practice Note: Post-death rearrangements. Compliance with these requirements will usually deliver the intended IHT and CGT position. The formalities for execution of variation should be followed accordingly. Precedent deed of variation...

The rules concerning settlor‑interested trusts are anti‑avoidance measures designed to stop a settlor from sidestepping tax on assets they have not fully given away. This Practice Note primarily addresses the income tax position of settlor‑interested trusts, while also sketching the capital gains tax (CGT) and inheritance tax (IHT) implications. For an at‑a‑glance overview of their tax treatment, refer to the table in Practice Note: Taxation of trusts—summary of tax treatment of settlor interested trusts. Income tax—settlor interested trusts The principal rule under which income can be treated as the settlor’s own is set out in section 624 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), which HMRC includes within the ‘settlements legislation’ (also called the ‘settlements code’ or ‘settlor code’). This general rule is subject to specific exceptions (see ‘Exceptions to the general rule’ below). Although commonly applied to settlor‑interested trusts, the provisions are broadly framed and may therefore extend to other arrangements that are not formal or express trusts; this is considered in...

Contributions to charities or political causes may elevate exposure to bribery and corruption risks in practice. In some circumstances, such payments may amount to, or be perceived as, concealed bribes. This Practice Note explains what constitutes charitable and political donations, the associated risks, and measures to reduce those risks. Charitable donations A charitable donation is a voluntary gift from a person or business to a charity or other not-for-profit organisation. This may involve providing money, facilities, equipment, staff time, or another benefit to a charity, or to an individual or body designated by, or linked to, that charity, for instance. Although commonly discussed together (as here), charitable donations are usually quite distinct in nature from political donations. The majority of charities are unconnected with politics and hold no decision-making authority or sway over procurement choices; accordingly, the likelihood that a charitable gift is corrupt, or viewed as corrupt, is lower overall. Indeed, many organisations regard charitable giving as a key element of their corporate social responsibility programmes...

FORTHCOMING CHANGE: Potential changes to Wills Act 1837 The Law Commission’s review of wills culminated in a final report on 16 May 2025. Volume II contains a Draft Bill proposing replacement of the Wills Act 1837. For details of these proposals, including the published draft legislation, see Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: Draft Bill for a new Wills Act. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime The Finance Act 2025 (FA 2025), which received Royal Assent on 20 March 2025, implements the abolition of the remittance basis and introduces a residence-based regime from 6 April 2025. FA 2025 makes residence, rather than domicile, the main determinant of liability to inheritance tax. changes to the rules defining excluded property status; removal of protected settlements status for offshore trusts; and modifications to overseas workday relief. For further information, see Practice Notes: The abolition of the remittance basis of taxation...

Top-level commitment We conduct our business [ es ] with integrity. All of us must act together to ensure our business [ es ] remain [ s ] untainted by bribery and corruption. This approval request form is central to that endeavour. [ Please see our [ insert, eg Gifts and hospitality policy ]. ] This form must be completed in every instance where a gift or hospitality is of a value above our permitted limit of £[ insert limit ]...

We conduct our business [ es ] with honesty. Everyone must collaborate to keep our business [ es ] remain [ s ] free from bribery and corruption at all times. This form is vital to that aim. See also [ insert, eg our Gifts and hospitality policy ] . Use this form in all instances where a gift or hospitality is offered or accepted without exception [ over the limit of £[ insert amount ] ] ....