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Trusts and Estates Law and Tax Journal: June 2013

Geoffrey Shindler questions the rationale of regulating will writing but not estate administration

Predictably, the spring 2013 Budget was, so far as trust and estate practitioners are concerned, something of a non-event. Indeed, since the Budget of 2006, from which some of us are still trying to recover, most of the budgets have been either so well trailed that the event itself said nothing that had not been revealed sometime earlier or contained nothing at all of relevance to us. What happened to the great British occasion that was known as the Budget? Perhaps changing the date from Tuesday to Wednesday and having the Budget interrupting our lunchtime has had an effect on the content. Whatever it is, the Budget is not what it was.

Serle Court

Andrew Francis discusses Gudavadze v Kay, which sheds light on a rarely used jurisdiction of the court to pass over those who would normally be entitled to a grant of representation

The complex, lengthy and multi-faceted litigation that has occupied the courts in recent years, and which has sprung from the disputes over the estate of the wealthy Georgian businessman, the late Arkadi Partakashavili (known as ‘Badri’) who died in 2008, has recently produced an interesting and potentially useful decision of the Chancery Division of the High Court on a jurisdiction that is often overlooked. The jurisdiction barely fills seven consecutive pages in Tristram & Coote’s Probate Practice (30th ed). It occupies a few more in Williams, Mortimer & Sunnucks, Executors, Administrators and Probate (19th ed). The cases on the jurisdiction seem, with a few honourable exceptions, to be antique. Many are unrelated to the modern world. In the present day, the need to take urgent steps to protect an estate, where there is no full grant of representation, will be crucially important, especially where there are disputes over the estate. Where such an estate may be only part of a worldwide set of assets, rights and claims, this provides the setting for this article, which was inspired by the decision referred to below.

Forsters LLP

Dominic Ribet reports on whether the amendments to IHT legislation contained in the recent Budget will lead to any unintended consequences

The 2013 spring Budget saw George Osborne take aim at hitherto uncontroversial arrangements that used liabilities (debts) to reduce the value of an estate.

Lisa Springate and Dina El-Gazzar examine the importance of the landmark decision in Re The Shinorvic Trust

The decision in the recent case of Re The Shinorvic Trust [2013] re-examined and tested the boundaries of the well-established principle that equity will aid the defective execution of a power in certain situations. Historically, the principle operated by allowing for equitable relief in order to perfect a defective execution of a power by a person who has the power over an estate (whether or not a power of ownership) and who shows an intention to execute the power in discharge of some moral or natural obligation.

Brabners LLP

Duncan Bailey reviews a case that discusses to what extent a law firm is responsible for unforeseen personal tax consequences stemming from a corporate transaction when private client advice is not part of the remit

The facts of Swain Mason v Mills & Reeve [2012] are somewhat convoluted, involving the sale of a business, but the most pertinent points can be summarised as follows:


Manx case IFG International v French clarifies the extent to which trust protectors can be indemnified out of trust assets. Seth Caine explains

The recent decision of the Isle of Man High Court in the case of IFG International v French [2013] has provided some useful guidance to trust practitioners upon the role of trust protectors, and their right to be indemnified out of trust assets.

Sharma v Hunters indicates the concerns the court takes into account when dealing with a wasted costs order, as Kate Mundy and Russell Simpson report

This case relates to the estate of Mr Hari Ram Sharma (Mr Sharma) who died on 12 December 2010. Mr Sharma had been a patient of the Court of Protection and his daughter, Ragny Sharma (Ragny), had been appointed as Mr Sharma’s deputy by order of the court in 2007 after a contested hearing.

Hannah Herbert weighs up the pros and cons of the new statutory residence test

When considering the statutory residence test (SRT) introduced by the Finance Bill 2013, Adam Smith’s principles of fair taxation came to mind. If you have not had to consider the theory of taxation for some time, the third principle states: