Henrietta Mason & Paola Fudakowska provide a wills & probate update
In Brooke v Purton (Huntley) [2014] EWHC 547 (Ch), [2014] All ER (D) 262 (Mar) Mr Huntley wished to leave his estate between his partner, and five children in equal shares. As his estate was substantial (mainly comprising a 90% shareholding in an unquoted company), he was concerned about the children’s ability to manage a large inheritance. In order to meet Huntley’s aims and concerns, his adviser, a 2-years’ qualified private client solicitor, suggested including Huntley’s business assets (which would benefit from business and agricultural property relief) in a discretionary trust which could be managed by the trustees.
In drafting the will, the solicitor included a clause establishing a nil rate band discretionary trust which she had adopted wholesale from the firm’s precedent library. However, she overlooked the fact that, whereas a nil rate band discretionary trust was usually used in conjunction with gifting to an exempt beneficiary, in this case there was no spouse and a number of chargeable legacies in the remainder of the will eroded the
