Some six months before T died, her son had predeceased her. The son had died intestate and, in the events which had happened, his estate passed to the estate of his mother. This meant that there was effectively a “doubling up” of Inheritance Tax, i.e. tax on the death of the son, and tax again on the death of the mother.

Our solicitors explored the use of Quick Succession Relief, and whilst helpful in reducing the tax charge, it did not go so far as to negate the effect fully. Our solicitors advised the executors of the mother’s estate to enter into a deed of variation, in their capacity as legal personal representatives so as to divert the first estate directly to the beneficiaries of the second estate. Accepted without question by HM Revenue & Customs, this resulted in a tax repayment of some £150,000.

Valued for probate at £3 million, the estate of P passed to a general discretionary trust which had been primarily set up for the benefit of her son. It was the deceased’s wish that the residue of the trust pass to charity on his death.

Left as it was, the trust would have been subject to significant tax charges every ten years. Our solicitors were instructed to advise on the matter; the trust was restructured so as prevent that tax charge from occurring. The saving for the charity beneficiaries is likely to be in the region of £500,000.

When taken on its own, the estate of R appeared relatively straightforward. However, when connected elements were factored in, the position became much more complex. The deceased was a tenant for life of a settlement written under the terms of the Settled Land Act 1925. A special grant of probate was necessary to deal with the Settlement assets.

Furthermore, because of the date that R became a beneficiary of that Settlement, on his death it was successfully argued that all of the assets of the Settlement were exempt from Inheritance Tax – a tax saving of around £300,000.