Private Client Structured Training Programme – Course information

Trusts

Through the use of case studies and drafting exercises, this module develops technical skills in the following areas:

  • Consideration of the types of trusts and interests, structures, taxation, drafting and usage: 
    • Interest in Possession
    • Discretionary
    • Accumulation and maintenance
    • Disabled / Trusts for the vulnerable
    • Protective
    • Bare
    • Contingent
    • Reversionary
    • Strict Settlements, land, heirlooms

  • Choice of:
    • trust – factors to bear in mind
    • trustees and beneficiaries
    • perpetuity and accumulation periods

  • Settlor interested trusts – their usage and implications for taxation/gift with reservation of benefit

  • Options for the family and second home
    • Review of previous tax avoidance schemes
    • Anti-avoidance measures and unraveling previous schemes
    • Gifts with reservation, SDLT and the Pre-Owned Asset Tax – traps and current planning possibilities

  • Charitable trusts
    • Main features
    • Content
    • Extent of public benefit required
    • Advantages of charitable status
    • Cy-près doctrine

Taxation

This module consolidates and develops delegates’ understanding of the taxes central to all private client work, with consideration of the following:

  • Inheritance Tax:
    • History and context
    • Administration and procedure
    • The main charging provisions
    • The post FA 2006 regime
    • Lifetime transfers – potentially exempt transfers and lifetime chargeable transfers
    • Transfers on death, and effect of death on lifetime transfers
    • Gifts with reservation of benefit
    • Implications of the Civil Partnership Act 2004 (effective from 5th December 2005)
    • Business Property Relief and Agricultural Property Relief – property eligible, non-qualifying property, ownership requirements, rates of relief, property subject to a reservation of benefit.
    • Heritage property – property eligible, conditional exemptions, undertakings, designations and maintenance funds
    • Exemptions and reliefsCapital Gains Ta
    • History and context
    • Administration and procedure
    • Disposals and part disposals
    • Calculation of gains
    • Reliefs
    • Losses
    • Husband and wife – disposals and tax planning points

  • Income Tax
    • History and context
    • Administration and procedure
    • Statutory income
    • Charges on income
    • Allowances
    • Rates of tax
    • Calculating the tax due

  • Pre-Owned Asset Tax:
    • History and context
    • Alternatives to paying the tax, elections and Inheritance Tax

  • Stamp Duty Land Tax
    • History and context

Wills and Post-death Arrangements

Through the use of case studies and drafting exercises, this module develops technical skills in the following areas:

  • Consideration of types of Will, structures, taxation, drafting and usage:
    • Fixed interest Wills
    • Discretionary – full form, 2-year and Nil Rate Band Legacy
    • (Flexible) Life Interests

  • Wills for particular circumstances, including (second) marriage, (second) families, outside of marriage, Civil Partnerships, separation and divorce.

  • Nil Rate Band Trusts in greater detail:
    • Provisions in the Will
    • Implementing on the death of the first spouse
    • What property should enter the trust, and the pitfalls of using the home
    • Debt and charge scheme, SDLT, and s103 Finance Act 1986
    • Running the trust and calling in the debt

  • Assets requiring particular attention:
    • Business property
    • Agricultural property

  • Intestacy

  • Domicile

  • Forced Heirship
    • Community of property
    • Restrictions on testamentary freedom

  • Capacity

  • Attestation

  • Secret trusts

  • Post death planning:
  • Use of post death planning as an alternative to Will planning and its dangers
  • Post FA 2006 restrictions
  • Disclaimers and Variations – usage, procedure and taxation implications
  • Introducing a Nil Rate Band Discretionary Trust by Deed of Variation
  • Altering spouse’s life interest, to make the most of planning opportunities
  • Curing Will defects by Deed of Variation

Management of Wills and Trusts

Topics covered comprise:

  • Administrative provisions:
    • Trustees powers and duties – Trustee Act 2000
    • Investment
    • Delegation
    • Land
    • Remuneration

  • The role of Trustee:
    • Choice, control and how appointed
    • Retirement, removal and vesting property in the new trustees
    • Indemnities

  • Events during a trust:
    • Income payments
    • Appointment and advancement of capital
    • Appropriations
    • Trust variations/rectification

  • On-going administration:
    • Dealing with beneficiaries
    • Investment policy
    • Tax returns and obligations
    • Accounts – why, format and content
    • Trustee meetings
    • Exercise of discretion
    • How to simplify the administration – loans to beneficiaries, mandating income and non-income producing assets

  • Winding up:
    • What triggers it
    • Practical, tax and administrative issues

Foreign Element

Foreign issues are of increasing relevance to the private client solicitor in practice. Topics covered comprise:

  • Conflict of laws
    • Residence and domicile
    • Jurisdiction
    • Situs
    • Succession
    • Exchange of information

 

  • Tax:
    • Income tax
    • Capital gains tax
    • Inheritance tax
    • UK property owned by non-UK domiciled clientForeign property owned by a UK domiciled client
    Double taxation Non-resident settlements

  • Exporting existing settlement

 

  • Considerations when planning a Will and necessity of involving a foreign lawyer/drafting a foreign Will

Contentious Trusts and Probate

The aim of this module is to familiarise the private client solicitor with possible claims against an estate or trust, and ways in which they could be prevented. It does not cover running an action. Issues considered are:

  • Probate actions – challenging the validity of wills on the basis of:
    • Lack of capacity
    • Lack of Knowledge and approval
    • Undue influence
    • Inadequate execution

  • Inheritance (Provision for Family and Dependants) Act 1975
    • Who is eligible?
    • Court and consent orders
    • Taxation effects
    • Changes due to Civil Partnerships Act 2004 (from 5th December 2005)

 

  • Proprietory estoppel
  • Constructive trusts
  • Resulting trusts
  • Capacity
  • Undue influence in relation to lifetime gift
  • Breach of Trust
    • Liability
    • Indemnities
    • Defences
    • Remedies and tracing

 

  • Unsatisfactory Personal Representatives
    • Action to remove
    • Alternatives

 

  • Use of Caveats
  • Avoiding negligence and litigation
  • Rectification of documents

Taxation (Advanced)

Issues dealt with during taxation days 1 and 2 will be revised and the learning reinforced by the use of exercises requiring the completion of computations (supplied in outline and with full answers distributed)

  • Heritage Property and Maintenance Funds, IHT, CGT and income tax
  • IHT on death, how it works including FA 2006 issues
  • IHT lifetime planning, options and issues following FA2006
  • IHT on trusts, IIPs and relevant property particularly following FA 2006, 10 year and exit charge
  • CGT the general rules
  • CGT rollover, holdover
  • CGT trusts
  • CGT and death
  • Gifts with reservation of benefit
  • Pre-owned asset tax
  • Comparison of corporate and non corporate ownership of assets/business

Estate Planning

This brings all preceding modules together through the use of various case studies. Topics covered are:

  • Estimating the potential tax bill
  • Transfers between husband and wife
  • Other transfers/lifetime giving
  • The matrimonial home
  • How to keep value out of the estate
    • Life assurance
    • Payments under pensions
    • Death in Service benefits

 

  • Gifts to Charity
  • Planning the Will
  • Developing an investment strategy for clients
  • Portfolio planning