Private Client Magazine

[Odette Millian]

PrivateClient Business is the leading journal for all those involved with private client work. It is divided into nine sections: inheritance tax, capital gains tax, foreign affairs, trusts, succession, family property, charities, Scotland and residue, each with its own specialist correspondent. It combines both comprehensive coverage on all developments (including case notes, tax tips and traps and Revenue statements), and thoughtful analysis of topical issues by leading commentators. Each year's bound volume serves as an ongoing reference work.

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Discover virtual content available live and on demand

We believe that any live content should be easy to digest and simple to interact with. Over the last 12 months we have succesfully created over 50 online events in varying formats. These include:

TL4 in partnership with ConTrA are proud to bring you the 4th Edition of the Ultimate Insider's Guide to all things Private Client. If you are newly qualified and looking to broaden your knowledge and develop your skills then you need to be here. Our programme is a full library of absolutely everything you would need to know and want to know about your practice area. In our unique Summer School style you can expect a load of networking opportunities in a very enjoyable setting.

We are delighted to bring you a brand new, innovative and unique event for the next generation of contentious trusts practitioners and for all other practitioners where trusts can be involved. Building on our track record of catering specific events for the next generation of legal practitioners we are delighted to bring together our next gen initiatives from across 4 of our communities at one event.

The disruptive potential of technology, in particular Generative Artificial Intelligence (Gen AI), in the delivery of legal services and resolution of disputes is fast becoming a key topic in conversations amongst legal professionals and advisors, with the tone a mix of excitement, skepticism and trepidation.

In Liechtenstein civil proceedings, the principle applies that the losing party in the proceedings must reimburse the winning party for the legal costs, fees and expenses incurred by it. As Liechtenstein is not a member state of the Lugano Convention, decisions by Liechtenstein courts on this reimbursement of costs cannot be enforced abroad without further ado. The procedural obligation to provide a security deposit for costs (so-called actuarial deposit; cautio iudicatum solvi) is therefore of crucial practical importance.

There has been a shift in recent years towards favouring open justice over court proceedings being held in private. Disputes in respect of trusts have not been immune to this trend and in the UK, as well as the Channel Islands, BVI, the Cayman Islands and Bahamas the Courts have been seen to scrutinise applications for proceedings to be held in private more carefully.

Wisdom and wealth part company in an environment of unmediated conflict. When families and individuals with wealth disagree, the emotional dynamic overlaying disharmony can amplify disagreement quickly. Early, skilled professional support can help to prevent conflict from spiralling to the detriment of everyone involved.

On occasion, evidence acquired during criminal investigations and/or proceedings can be useful in contested probate disputes. Aside from the crossover embodied in the well-known forfeiture rule, there are further intersections between the two areas. For example, issues relating to criminal conduct may be a relevant consideration when challenging a Will for forgery or fraud, or under section 3(1)(g) under the Inheritance (Provision for Family and Dependants) Act 1975 which states that in exercising its power the Court shall have regard to the conduct of the applicant or any other person. It is unsurprising that evidence regarding previous convictions, investigations and evidence are highly sought-after for probate disputes.

With the rise in international families, couples should be aware of the financial implications of formalising their relationship abroad as it could in fact be recognised as forming a relationship tantamount to marriage in another jurisdiction.

It is trite law that there is freedom of testamentary expression in England and Wales but there is also no doubt that private client litigation, which effectively thwarts that freedom, is on the rise. There are an increasing number of both will challenges and claims for further financial provision pursuant to the Inheritance (Provision for Family and Dependants) Act 1975 (the 1975 Act). In this context a testator may well want to protect their wishes and their intended beneficiaries from any challenge in the future by including a no-contest clause in their will.

The estate of Lavern Gaynor, heiress to the Texaco oil fortune, has won a jury decision concerning $21 million in penalties and interest for her allegedly willful failure to report foreign bank accounts to the U.S. government.

We are delighted to present the Contentious Trusts edition of the Private Client Magazine. In Issue 14, we unveil the challenging landscape of trust disputes. From family dynamics to the evolving legal frameworks across different jurisdictions, our authors examine the intricacies involved in resolving contentious trust matters. We hope you find the following pages insightful, as they shed light on familial relationships and legacy preservation.

When a marital relationship turns sour and a divorce is sought, sometimes what is left to be resolved might unfortunately just be the value and division of the matrimonial assets owned by the parties, which often involves shares in private companies, cryptocurrency and investment properties. The value of these assets is then estimated using commonly adopted valuation approaches, and yet often the party-appointed experts arrive at values with a substantial gap between them, leaving the court to assess and finally determine their value.

A modern stumbling block for those administering a will are the digital assets the person may own and how they are dealt with after death and their inclusion, or lack of, within a conventional will. Here we explore in more detail as to how this area is evolving to adapt to this new type of modern day asset.

Across the UK the composition of families is changing. No longer is marriage the norm; instead, more and more couples are deciding to live together as cohabitants without formalised relationship statuses.

A trustee or protector losing capacity inevitably creates uncertainty for the trust structure. It can force the administration of the trust to be put on hold or even temporarily lead to a complete halt in decision-making for the trust.

Mutual Wills come in and out of fashion, more commonly used in blended families to protect an estate for the children as agreed at a point in time, sensitive to the fact that neither testator may want a subsequent spouse (or their children) to benefit from a joint estate built up during a relationship. Once the first testator has died, the second is prohibited in equity from changing the dispositions in that mutual will, so that any subsequent executor will hold the estate on trust for the gifts made in the mutual will. Put plainly, after the first testator has died, the practical effect is that the gifts in the mutual will take effect regardless of any subsequent will.

The number of inheritance disputes in England and Wales has risen dramatically in recent years, with a recent report from The Guardian (February 2024) citing that as many as 10,000 people were disputing wills annually. The Ministry of Justice has reported 140% increase in court cases in this area in the past decade with 195 cases heard in 2021-22 alone.

Is your client going through a divorce in a foreign jurisdiction but they or their spouse has an English pension? Or are they contemplating divorcing in England but have foreign pensions? This area has potential trips and pitfalls so it is important you identify this early and consider the implications ideally before the divorce is even issued.

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