WEP Bulletin – December 2017

WEP Monthly Bulletin – December 2017

Welcome to our monthly Wills & Estate Planning Bulletin, each month we will keep you up to date with Trusts, Court of Protection, Living Wills and other current matters concerning WEP.

 Trusts

  • Trusts ought to be registered with HMRC by 31 Jan 2018 however as long as taxable trusts are registered by 5 March, there will be no penalty for a delay by the trustees or their agents.
  • (STEP) “The Association of Corporate Trustees (TACT) has put several questions to HMRC regarding the online Trust Registration Service (TRS), to which HMRC has released a response. One of the queries regards a trustee’s lack of National Insurance number (NINO) for a settlor; HMRC has stated that it will consider building into the service an acknowledgement that this information may not be immediately available, and that HMRC’s view is that trustees ‘would not be committing an offence under the legislation if they could show that they had taken all reasonable steps to obtain relevant information.’ Further, TACT observes that, in the case of registering a portfolio of shares, the TRS is ‘unworkable’ where there is a considerable portfolio; HMRC has responded with an explanation of how this can be done through providing one value for the whole portfolio.”

Court of Protection

  • Online deputyship reporting service to be launched by the OPG for both lay and public authority deputies. It aims to have 80% of deputies submitting their reports online, and 30% of new LPAs being created online. At the same time, it will consult with stakeholders on developing a fully digital LPA, rather than the combined digital/paper system currently in use.

Living Wills

  • The family of an 81 year old kept alive for nearly 2 years by feeding her through a stomach tube, despite signing an Advance Directive requesting the contrary, are to receive £45,000 compensation from the George Eliot Hospital in Nuneaton. The living will had been misplaced in the middle of some medical records and only became aware on receiving notification from the GP.

Income Tax / Partners

  • HMRC has withdrawn its appeal to the Upper Tax Tribunal in the King case (2016 TC05163), in which the First-tier Tax Tribunal found that the members of a limited liability partnership could declare a different profit share in their personal income tax returns if they disagreed with the figure in the partnership return. HMRC had argued that each partner has a statutory obligation to include in their individual return whatever profit share is shown in the partnership return, although this was contrary to its own guidance. Accordingly, the lower tribunal’s decision will stand.

 Estate Disputes

  • The wife of mentally incapacitated farmer Roger Moore has obtained leave to appeal a judgment of the England and Wales High Court that awarded their son the sole ownership of their GBP10 million farming business. In 2016, Stephen Moore persuaded the High Court that his father had promised him the farm in Wiltshire many years ago. But his mother, Pamela Moore, says Roger had not given Stephen any legally binding promises, that the ruling is unfair on her daughter, and that it has left her and her husband ‘bankrupt in all but name’.

If you have any queries or questions regarding these matters do not hesitate to contact us. Alternatively, if you would like to make an appointment with one of our Wills and Estate Planning Solicitors please get in touch with our First Contact team on 01256 320555 or email mail@clarkeandson.co.uk.