Spousal by-pass trust meaning

Re estate of Ramus (deceased); Ramus v Holt (as executor and beneficiary of the estate of Christopher Stewart Ramus) and others [2022] EWHC 2309 (Ch) What are the practical implications of this case? As with many I(PFD)A 1975 claims, the facts are regrettable; yet a careful, lengthy judgment distils the core lessons and sharply reinforces the fundamentals. Issuing proceedings in haste is ill-advised; without cogent evidence, a claim cannot succeed. Contentious probate practitioners are reminded that every I(PFD)A 1975 application is fact-specific and must be assessed against its own circumstances (Cowan v Foreman [2019] EWCA Civ 1336). Spousal claims also engage the special factors in s 3(2) of the I(PFD)A 1975. The Duxbury calculation should not be applied by rote; it is a helpful guide. The appropriate method is to start with Duxbury, attribute proper weight to the figure produced, but recognise it does not, by itself, yield a definitive answer to the lump sum required to meet the applicant’s needs. Where there are separately represented and interested...

See Q&A: In 2006, the deceased’s spouse set up a nil rate band trust (NRB) in his Will, funded by a £285k loan note issued by his wife. The loan note was the only paperwork and the trust was never registered on the Trust Registration Service (TRS). The deceased’s children want the trustees to appoint the value to their own children. Do charges under the relevant property regime arise for this trust? Should the trustees register the NRB trust on the TRS retrospectively and make disclosures to HMRC? Relevant property trust charges For the ten-year anniversary charge, the available nil rate band (NRB) forms part of a calculation to derive the effective rate (ER), which then sets the actual inheritance tax (IHT) rate applicable to the specific trust. The actual rate equals 30% of the ER. As the ER cannot exceed 20%, the highest actual rate is 6%. Accordingly, the calculation limits the potential charge to this ceiling in practice...

In this issue: Probate Court of Protection Elderly and vulnerable clients Spouses, civil partners and cohabitants UK taxes for Private Client HMRC Manuals tracker Tax avoidance, evasion and non-compliance Family businesses and ownership structures Insolvency—Private Client 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 Latest Q&A Useful information Probate HM Land Registry updates Practice Guide 6—Devolution on the death of a registered proprietor HM Land Registry (HMLR) has revised Practice Guide 6—Devolution on the death of a registered proprietor. Section 6 now aligns with HMLR’s refreshed approach to first registrations. Formerly, where there were no other requisitions, HMLR would complete the application with a protective note and issue a...

Follow the link below to download the presentation. Contents Updates to APR/BPR Transfer between spouses Reasons asset targeting falls short APR/BPR trust clause Funding the trust Case study Case study solution Anti‑fragmentation Administration checklist Client communications Pitfalls and risks Summary These PowerPoint slides are designed as a foundation for a training session on Agricultural and Business Property Relief for the relevant fee earners. The presenter can tailor them—by trimming or expanding the points—to match the audience. How to use these slides Allow around two minutes per slide, and use the case study for a 20‑minute breakout. If more depth is required, the content can be delivered over two or three separate training sessions. Further reading Autumn Budget 2024—Private Client analysis Hot topic—the reform of business property relief and agricultural property relief Change in the approach to IHT planning for farmers Tax—Finance Act 2026...

Overview of the use of life insurance in estate planning Life insurance—also called life assurance—often plays a significant role in estate planning. This Practice Note outlines the principal policy types offered in the market, examines how they can support an estate plan, and reviews the key tax implications. A central difficulty in many estates is finding cash to settle the inheritance tax (IHT) that arises on death where no spousal exemption is available and the estate is made up, to a meaningful degree, of hard‑to‑realise assets. These can include land, shares in a business that may fail to attract business property relief, and chattels, for example works of art that fall outside the conditional exemption regime. Although IHT instalment property relief can, for illiquid assets, allow the liability to be spread over ten years with interest charged, the obligation to pay IHT remains, and releasing sufficient liquid funds can be problematic. Life insurance can, on death, provide immediate liquidity to meet the IHT liability...