Page 44 - Marlborough Living Nov/Dec 2019
P. 44

                  A Pet is for Life...
Inheritance BYoaruerTWreuaslttsh,
Not just for Christmas
This is as true now as ever, particularly
with the ease of acquiring puppies or adult dogs via the internet. Although some may be genuine, some will be stolen, illegally imported or puppy-farmed. Their health and socialisation is often poor, leading to illness and behaviour problems. HOWEVER, when considering gifts - for a year-round source of joy, companionship and health benefits, a pet might well be the answer.
Ground rules
1. Do your research thoroughly and involve ALL the family
Good information on the commitment involved and lifetime costs is available from, uk, and Consider the exercise and grooming needs of your chosen pet. We offer a free pre- purchase clinic to discuss your choices and how to prepare for your new arrival.
2. Choose a pet from a reliable source and make sure that, for youngsters, you see the mother and genuine home environment. Please use and the Kitten Checklist from When choosing a pre-loved pet, make sure that the rescue home are fully aware of your home circumstances.
3. Don’t get it at Christmas! There is far too much going on to be able to focus on your new arrival.
4. Never give pets to someone else without discussing it with them first.
Older relatives: many don’t want “things”, but would appreciate practical help with caring for their beloved pet companions, such as a year’s Healthy Pet Club Membership, Vouchers for grooming or dog walking.
tax planning:
Bare trusts are true to their name
ecision gifting pitfalls
Your D
he tru
stees ho
trust property on behalf of the
bVeincetfiocirariya, itIreraellmy isotnhagtesrim,pale.paralegal at
The beneficiary owns the
ld the
Wansbroughs Solicitors in Devizes considers Bethany Williams, Trainee Solicitor within the beneficial interest in the property
atPhnrdeitvhEeaynteagrelCieslnihteitnlCedtotuoeatrhtme’sinacotmWe amnistbmroeungthtso Suoplihcoiltdoirns g
it generates (if any) but they will
tdeistcaumsseenstianrhyefrrietaendocemt.a..x planning...
not own the property outright until
they reach the age of 18 years of
Testamentary freedom is the concept that you can, within your
Inheritance tax is not popular. No doubt you, like me, have heard Will, leave your wealth to whomever you wish - whether by
sBoamreetrvuasrtisataiorenoftfe“nIpuaseydtabxyesallmylife,justtohavethetaxman outright provision or by placing assets into a trust.
grandparents to gift money to their
rob me again when I’m gone” on at least one occasion.
grandchildren who are below the age of 18 years old and therefore
The recent case of Cowan v Foreman reaffirmed the English
unable to receive such funds outright. In many instances,
That said, there are ways to be efficient when it comes to
Court’s commitment to upholding testamentary freedom grandparents may open interest-bearing bank accounts in their inheritance tax. Lifetime gifting is a popular option and, when wherever possible, by rejecting Mrs Cowan’s application to grandchild/grandchildren’s names and then transfer money into that understood and utilised correctly, simple. You can make a gift receive her inheritance in the form of outright legacies instead of account – either larger one-off, less frequent sums or more frequent during your lifetime and, provided that you outlive that gift through the trusts set up by Mr Cowan’s Will.
sums, i.e. monthly sums. The grandparents can rest assured in this
by 7 years, it will not be included within your estate at death.
instance that they retain control of the funds as signatories of the
Effectively, this means that you can gift assets to your loved ones Under the terms of Mr Cowan’s Will, he made Mrs Cowan a account while their grandchildren are minors. The funds can be
during your lifetime and, by doing so, reduce both the value of ubseendefifocriatrhyinogfstwthoeirtrgursatnsd. cShinildcemMayr Creoqwuiaren,’si.ed.esactho, othl efetersu,soter es
your taxable estate and the amount of inheritance tax payable on shcahvoeobl etreipnss. uTphpeorntilnygsthipisulwatiidoonwiswthitaht ltahregyemuosnttbhelynepfaitytmhents. It
your death.
gisrahnodwcehvilderbrecpaourtsedatlthaotuMghrsgCraonwdpanarwenats uwnilcl oremfaoirntainblceowntitrohl tohfe
the funds, they actually belong to the grandchild.
arrangements, feeling that she was “at the mercy of the trustees” Problems arise when one attempts to outsmart the system – by
wWhoenctohueldgrcauntdhcehrildadartitfat iwnsiththneoagaeccoefs1s8t,othmeyonceayn aretqaulle’.st that the gifting property to loved ones in name only, with no real intention
trustees transfer control of the trust property and the income. Bare
of passing that asset over just yet. tMrursteCeoswmaunsthbeereafroinremaipnpdlitehdattoif theyHciognhsCidoeur r1t8toyevarsy othldeto be
tdoiostryiobuntigonfoor ftheir lgartaenhducshbildarnedn’stoeisnthaeteri.t Rlaurgliengsuamgasinosf tmhoenr,etyhe tThoeinlluasbtrartettrhuestpmroabylenmot,
judge stated that ‘there is absolutely nothing in the evidence to 1. you own a holiday home;
Istuisggneosttjuthstaftotrhgeratrnudscteheildsrwenouthldatbblatraenttrluysdtsecfyanthbeedcerceeaatesde.dB’sare 2tr.ustsicnahnerbiteanccreateadxiwniWllbillespoarywahbelenotrnusytoeeusreosftatpeeantsidoenastchh;eamnde
wishes’ and ‘it must be possible for the testator to provide for his
t3wra.idnosfweyrobauyrlualmogvpendseuormonuedsetawrtuhilsl btneaenreredafnitg,oteosmenellantmht esujhucoshltidaascytohuiosp,mleweoitfhoosuettthle contain cash and can, for example, fear that it will be interfered with at huge expense in proceedings
contain shares or property. There can be more than one beneficiary
under the 1975 Act.’
oYfoau bmaarey trhuisntk(it.hea. tyobuyrgirfatindgcthieldhreonlidasayahcolamsse).dAulrliingayllo, tuhrey can
 and just deal with “bare”
tials! T
 be very flexible in terms of what they contain, who the trustees are
lifetime (and surviving that gift by 7 years), your loved ones As highlighted in the Cowan case, as long as trustees act in
and who the beneficiaries are. They can be set up by anyone, not
could receive the property inheritance tax free, you can lessen a reasonable manner and in accordance with your wishes,
just family members for the benefit of other family members.
or eliminate the inheritance tax payable on your estate at death, there is little reason to overturn a trust arrangement. It should
For both capital gains tax and inheritance tax purposes, the
and you could continue using the property as a holiday home. however be noted that Mrs Cowan has indicated her intention
beneficiary is treated as the beneficial owner of any property which
tWoinapwpiena, lritghhet?judgment so while, for now, the Courts appear to
is held in the bare trust, not the trustees. The transfer by the
be upholding this concept, it remains to be seen whether Mrs
individual, whoever that may be, into the trust is a gift for inheritance
CWorownagn. will persuade them to alter the means of her inheritance.
tax purposes but no inheritance tax charge will arise immediately
and if the individual gifting into the trust survives for seven year from
TIfoyfionudcountinmuoeretoaubsoeutamn aksisnegt athWatilyloaundhaovtehegriveesntaatewpaylaansniinfgit,
the date of the gift then no inheritance tax will be payable at all.
pstleillabselognegt sintotoyuocuh,wthitehRyeovuernuuseuawlilclotrnetatcthattWsoa-ncsabllreodug‘ghisft’oars
Capital gains tax might arise on a transfer into the trust if the asset
cifoitnstaticlltbueslong0s1t3o8y0ou73a3t 3d9e9atohr. HviMa eRmCariel faetr to this as ‘reserving
is not cash. Therefore a gift into a bank account in cash would not
wa ebaelnthe@fitw’ andsbarroeuaglhivse.ctoms.uch attempts
trigger a charge to capital gains tax.
 to avoid or reduce inheritance tax.
Once funds are in the bare trust, capital gains tax, if payable, is
pitfalls such as that illustrated above,
By Victoria Iremonger
payable by the beneficiary but they are entitled to their individual
If you would like assistance with tax
annual exemption of £11P,1a0ra0leagnadl -sPimrivilartely,Cinliecnotme tax will be
and estate planning, to avoid common
payable by the beneficiary.
Wansbroughs Solicitors
Bare trusts have many other potential uses which you can discuss
please contact a member of the
with us should you think this might be of interest to you.
Devizes: 01380 733300 Wansbroughs Private Client team on
to conMsiedlekrshanaymo: f 0th1i2s2i5n 8m9o6r1e00detail please 01380 733300 or by email at
If you would like
contact Wansbroughs in Devizes on 01380 733300, email or your usual contact. Bethany Williams
 Devizes Office
Northgate House, Northgate Street, Devizes SN10 1JX
Tel: 01380 733300
Melksham Office
7 Spa Road, Melksham, Wiltshire, SN12 7NP
Tel: 01225 896100
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