14th September 2017
An interesting decision from the High Court indicates that clients with a Personal Injury Trust must provide whatever proof the council requests to support an application for Council Tax Reduction/Support.
It is appropriate for the majority of personal injury trusts to be established as Bare Trusts. On your death the trust will end and any money within the trust fund will form part of your estate. If you have left a Will then the terms of this will determine distribution of the trust, otherwise the Rules of Intestacy will dictate distribution.
The trustees of a personal injury bare trust will not be liable to pay inheritance tax (IHT) and the money is simply paid over to the personal representatives of the estate on sight of the grant of probate; any IHT payable is the liability of the personal representatives of the estate rather than the trustees of the PI trust.
If a pure Discretionary Trust has been established, the trust deed will indicate what happens to the remaining trust fund.In addition to the injured person, there can be other potential beneficiaries and the trustees have a greater degree of flexibility in holding and applying the trust fund for the beneficiaries.
For IHT purposes, the trust will be subject to the relevant property regime.
In the event the beneficiaries of the Estate are in receipt of means-tested benefits it may be beneficial to ensure a suitable Will is created so that bequests are held in a separate trust, created in the Will, in order to maintain the support received by the recipient.
Ian Gunn ponders the fashion for passive investing...
This blog considers the answer to one of the questions I am asked most often.
Secretary of State for Work and Pensions, David Gauke, has on 19th July 2017 announced that the increase in the pension age to 69 will now take place seven years earlier than planned.
The National Audit Office (NAO) has published the findings of its investigation into NHS continuing health care (CHC). The National Audit Office scrutinises public spending for Parliament and is independent of government.
On the 7th September 2017 the government published the outcome of the discount rate review and published draft legislation.
Ian Gunn considers the impact of a negative discount rate on indemnifying claims against medical professionals, employers and defendants with public liability.