A gift was made within three years of death. Under estate duty law it fell to be treated as property passing on the death. The deceased’s estate was heavily insolvent with a deficit of over andpound;90,000 and the executrix claimed that the aggregate of the virtually negligible personal estate and the preceding gift should be reduced by the total amount of the debts.
Held: ‘I am unable to agree with the construction of s.7, sub-s. I, contended for by the appellant. I think the words of the section contemplate liabilities of the estate which are met out of the estate, and I think that the last three lines of s.7, sub-s 1, in their natural meaning are inconsistent with the appellant’s case. I do not see how, in determining the value of an estate, allowance can be made for debts beyond the value of the assets out of which the debts are to be met. It is an unnatural use of words, in my view, to speak of making an allowance for a minus quantity in determining value. The appeal will therefore be dismissed, with costs.’
References:  1 KB 316
Judges: Lawrence J
Statutes: Finance Act 1894 7
This case is cited by:
- Cited – Green and Another v Inland Revenue ChD 11-Jan-2005
The deceased died intestate and with a negative valued personal estate, but with assets in trusts, including a revocable life interest in property. The question was whether his debts could be set off against the trusts interests to reduce them below . .
(,  EWHC 14 (Ch),  1 WLR 1772)
- Applied – Peter John St. Barbe Green, David Robert Mitson (Trustees of the Will of Consuelo Dowager Duchess of Manchester v the Commissioners of Inland Revenue ChD 11-Jan-2005
The taxpayer appealed a notice of determination of liability of the estate for Inheritance Tax purposes. He sought to set off an excess of liabilities over assets in the deceased’s own estate against assets held in settlements.
Held: The . .
( EWHC 14 (Ch), Times 14-Jan-05)
These lists may be incomplete.
Last Update: 27 November 2020; Ref: scu.221018