Practical Law

UK – Wills, Estate & Tax Planning – (End Term Project)
(Word Count – 6000 words. State exact relevant statutes (i.e. Sub-sections of the Act), Lexis/Nexis PSL and Practical Law. Must incorporate academic law journal articles and include at least 20 case laws (preferably those from the 21st century); use OSCOLA referencing based on UK Wills, Estate & Tax Law).
Problem Scenario Advice to Clients, Arthur and Amanda Dale

Answer all questions from Parts A, B, and C. Ensure that Part A and Part B of the questions follow the IRAC rule.

Hints: See enclosed Answer Suggestions from the Tutor.

Problem-Based Assignment Questions
The above problem-based exercise /question requires critical analysis. Then need to provide a concise and comprehensive answer based on the IRAC rule.

1. Identify – Identify the issues
2. Rule – Explain the relevant rule/law — statute/case law
3. Apply – Apply the law that you discussed above to the facts/ problem presented
4. Conclude – Offer a reasoned conclusion
5. Referencing – OSCOLA Reference  
   Memorandum

To: Trainee Solicitor
From: Vanessa Yates, Supervising Solicitor
Clients: Arthur and Amanda Dale

I attended a meeting yesterday with married couple, Arthur Dale (68) and Amanda Dale (60), to discuss wills and inheritance tax planning. Neither Arthur nor Amanda has previously made a will or engaged in any inheritance tax planning.

Arthur and Amanda have been married since 1985 and have two adult children, Kira, aged 30, and Samuel, aged 28. Kira is married to Madeleine and they have two children, Arne (aged 6) and Poppy (aged 4), who are Kira’s biological children, legally adopted by Madeline. Samuel lives with his partner Grace and they have a son, Daniel (aged 2). Samuel established his own design business in 2015, Imago Designs Ltd, in which both Arthur and Amanda have shares. Arthur and Amanda had another son, Duncan, who died aged in 2014, leaving a widow, Sarah, and two children, Sia (now aged 12) and Marc (now aged 10).

Arthur and Amanda live at 3 Lancaster Mews, Cheltenham. The property has an annex, in which Amanda’s mother, Betty (aged 78). has been living since the death of her husband (Amanda’s father) last year. Arthur’s parents died several years ago. Arthur has two brothers, Michael and Alan, and Amanda has a sister, Anabelle.

To their knowledge, both Arthur and Amanda are in good health, but Arthur is unable to write following an injury to his hand following a boating accident in 2018.

Arthur is a freelance business coach and Amanda is a consultant surgeon at Gloucestershire Royal Hospital. Amanda has a death-in-service benefit, which pays out a lump sum equivalent to four times her salary if she dies whilst employed by the NHS. She has filled in the paperwork to nominate this to Arthur.

Amanda and Arthur’s assets are set out below at the end of the Memorandum.

Arthur and Amanda would like to make wills as follows:

Arthur’s instructions

Executors: Amanda and Kira
Burial wishes: cremation

Legacies:

• Rolex watch to Samuel.
• £50,000 to each child.
• £5,000 to each grandchild.
• £1,000 to each of Madeline, Grace and Sarah.
• Residue to Amanda, but if he has predeceased to the children in equal shares.

Amanda’s instructions

Executors: Arthur and Kira
Burial wishes: cremation

Legacies:

• All jewellery to Kira.
• £50,000 to each child.
• £5,000 to each grandchild.
• £1,000 to each of Madeline, Grace and Sarah.
• Her share in 14 Brooklands Avenue, Prestbury to her mother.
• Residue to Arthur, but if she has predeceased to the children in equal shares.  
  Questions

Part A – Estates Planning (3500 words)

Question 1.
Please provide an in-depth review, explain, and advise Arthur and Amanda how their respective estates would be distributed if they each died intestate. Consider both the first and second deaths.

Question 2.
Please provide an in-depth review, identify, explain, and advise Arthur and Amanda of any issues concerning their will instructions, and highlight where further instructions will be needed.

Question 3.
Regarding Arthur’s disability, please provide an in-depth review of the complete detailed procedure that must be followed for him to execute his will.

Question 4.
Please provide an in-depth review, identify all issues and advise regarding Amanda’s mother, Betty.
(Please consider inheritance matters, not land law or trust matters).

Part B – Inheritance Tax Planning (2300 words)

Question 1. Please provide an in-depth review and advise Arthur and Amanda how best to minimize and save inheritance tax on death if they are considering transferring the legal title to the Bude holiday property into Kira’s and Samuel’s joint names to remove it from their inheritance tax estates. They would like to know if this is a good idea.

Question 2. Please provide an in-depth review and advise Arthur and Amanda how best to minimize and save inheritance tax on death if she might want to reconsider her nomination about the death in service payment, as nominating it to Arthur does not save inheritance tax.

Question 3. Please provide an in-depth review and advise Arthur and Amanda how best to minimize and save inheritance tax on death, and from a theoretical perspective, without you doing any calculations, the tax consequence if they consider each making a lifetime gift of their shares in Imago Designs Ltd to Kira and Samuel.

Question 4. Please provide an in-depth review and advise Arthur and Amanda how best to minimize and save inheritance tax on death if they make lifetime cash gifts to their family.

Part C – Introduction and Overall Conclusion (200 words)
Provide a short introduction and overall conclusion.
 

Assets

Arthur and Amanda’s jointly
owned assets Value Notes
3 Lancaster Mews, Cheltenham £1,000,000 Owned by Arthur and Amanda as beneficial joint tenants with no mortgage.
Seaview Cottage, Bude £800,000 Owned by Arthur and Amanda as beneficial joint tenants with no mortgage.
Savings in various accounts £300,000 Joint accounts.

Amanda’s assets Value Notes
14 Brooklands Avenue, Prestbury £300,000 Amanda and Annabelle inherited this property from their father, and they own it as beneficial joint tenants. There is no mortgage.
Shares in Imago Design Ltd. £30,000 Acquired in 2016 when worth £2,000.
Portfolio of shares in public companies. £200,000
Personal possessions, including jewellery. £40,000

Arthur’s assets Value Notes
Shares in Imago Design Ltd. £30,000 Acquired in 2016 when worth £2,000.
Personal possessions, including various Rolex watches £50,000