Topical probate and trusts management issues – Penningtons talks to Citywealth

Posted: 15/05/2012

Penningtons partner Clare Archer, along with a number of other leading private client lawyers, has been interviewed by Citywealth about current issues in the world of probate and trusts management. Here are just a few of Clare’s comments in the Q&A style feature which appears in the latest issue of this publication for high net worth individuals and wealth managers:

On the introduction of the new Statutory Residence Test:

“This has been delayed until April 2013. The profession is divided as to whether the delay is regrettable or not but clearly the aim must be to refine the drafting rather than to rush the legislation out. However, it will be difficult to advise clients in the intervening period.”

On the need for a General Anti-Abuse Rule to deter abusive tax avoidance schemes:

“There are real concerns whether this Rule will be limited appropriately or whether it may inadvertently catch individuals or companies who are legitimately attempting to organise their affairs in a tax efficient way.”

Are the costs and complications of trusts in wills or settlements really worth it?

“I think the erosion of the ability to use trusts in recent years is a retrograde step. There are all sorts of occasions when trusts are the most appropriate way of balancing competing beneficiaries’ interests.”

On protecting wealth in the case of mental incapacity:

“I would recommend to a client who has individuals he trusts that they look after his/her affairs by making a Lasting Power of Attorney (property and affairs). This is drawn in such a way to allow the donor of the power to give a real framework to the decision-making process and to give real guidance to attorneys in matters that they should be considering.”

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