The beneficiary, a child was to inherit estates of his grandparents and parents, all of which were intestate. An application was made to vary the provisions in order to reduce the liability to Inheritance Tax.
Held: A deferment of vesting might constitute a ‘benefit’ for the purposes of the 1958 Act, but it was an issue to be decided from case to case. In this case the original proposal would cross the line between variation and resettlement, and the child at three could not now be predicted to be in need of protection at the age of majority. However a variety of the proposal was acceptable and was approved.
Norris J
[2011] EWHC 2881 (Ch), 14 ITELR 603, [2012] 1 WLR 802, [2012] STC 255, [2011] STI 3431, [2012] WTLR 549
Bailii
Administration of Estates Act 1925 47, Trustee Act 1925 31 32
England and Wales
Citing:
Cited – In Re Bernstein ChD 2008
The testator had left andpound;100,000 legacies to his grandchildren at 25. In order to achieve a tax saving. The court was asked to approve an arrangement under which the individual legacies were replaced by interest in a fund in which the widow . .
Cited – Re Cohen’s Will Trusts ChD 1959
An application was made for the variation of trust provisions on behalf of a child beneficiary.
Held: Where the outcome of the arrangement cannot be predicted with certainty then the Court should be prepared to take on behalf of a minor, a . .
Cited – In Re Druce’s Settlement Trusts ChD 1962
Russell J discussed the difficulties of trustees when making an application on behalf of a beneficiary of the trust: ‘The application was made not by a beneficiary but by the trustees. This is a disadvantage, particularly in a case such as the . .
Cited – In re T’s Settlement Trusts ChD 1964
Wilberforce J was asked to approve a variation of a trust in favour of a child under the 1958 Act, to restrict her from getting her full entitlement on her attaining the age of 21 because she was said to be ‘alarmingly immature and irresponsible as . .
Cited – Re Van Gruisen’s Will Trusts ChD 1964
The court considered the extent of its discretion to vary the provisions of a trust.
Held: The Court should ask whether, if the persons on whose behalf consent is to be given were themselves competent and reasonable, the bargain is one that . .
Cited – Re Weston’s Settlement Trusts CA 1968
The settlor applied for the approval of an arrangement for the export of his trust to Jersey, where he had gone to live. The court considered its powers under the 1968 Act.
Held: The court should not consider merely the financial benefit to . .
Cited – in Re Wallace’s Settlements ChD 1968
A judge considering an application to vary trusts should approach it with ‘a fair cautious and enquiring mind’. . .
Cited – In Re Remnant ChD 1970
Approval was sought of a proposed deed varying trusts created in the will.
Held: The testator’s intention would be defeated by the proposed arrangement which involved the deletion of the forfeiture provision dependant upon the beneficiary’s . .
Cited – In Re Holt’s Settlement ChD 1969
An application was made to vary the terms of a trust in favour of children.
Held: The court was ready to receive evidence from a mother whose children were due to become entitled to funds at the age of 21 that she believed it most important . .
Cited – In Re Irving 1975
The (Canadian) court considered an application to vary a trust on behalf of a child, and asked itself: ‘Would a prudent adult, motivated by intelligent self-interest, and after sustained consideration of the proposed trusts and powers and the . .
Cited – Weston v Inland Revenue Commissioners ChD 29-Nov-2000
The taxpayer owned land upon which he ran a caravan park. Income was generated by pitch fees, and from commissions taken from the sales of caravans from one pitch owner to the next. The Commissioners asserted that the income was to be treated as . .
Cited – Ridgwell and others v Ridgwell and others; In Re RGST Settlement Trusts ChD 14-Nov-2007
Funds were held upon trust for X with the remainder (in default of exercise of the power of appointment) to his three children aged 7,5 and 2. It was beneficial for tax purposes to insert a life interest in favour of X’s surviving spouse (thereby . .
Lists of cited by and citing cases may be incomplete.
Wills and Probate, Inheritance Tax, Trusts
Updated: 01 November 2021; Ref: scu.448121