The parties disputed the effect of a term in the will leaving a share calculated according to the current rate of exemption from Inheritance Tax.
Held: ‘the purpose of clause 3 was to bequeath a legacy of the amount that was the maximum amount without inheritance tax being payable. The draftsman intended by the description to cover the possibility that the nil rate band might increase between the date of the will and the death. In other words it was intended that this legacy would be free of tax and would be an amount equal to the nil rate band at the time of the death of the Deceased.’ The claimant’s interpretation failed, and ‘ it is said that Trustees of charitable organisations are required to maximise the return for their charity but I really wonder whether the discharge of that duty required this action to be brought. In my view the RSPCA whatever the view as to the will ought really to have considered that the residuary legacy that I have determined it is entitled to was generous and ample provision out of this estate. The impact of the arguments on the size of the bequest to the Deceased’s brother was quite stark. This action has plainly caused distress to the Defendants and in my view ought not to have been brought.’
Peter Smith J
[2010] EWHC 268 (Ch)
Bailii
Inheritance Tax Act 1984 4(1)
England and Wales
Updated: 25 August 2021; Ref: scu.401667
