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Case Study: Professional Negligence
The Problem:
Alison Grant represented solicitors who had previously acted on behalf of a client who had gifted land to his sons. The disposition of the land to the sons was not recorded for several years but within seven years of the death of the client. The question then arose as to when the transfer of value took place. The Inland Revenue had assessed the value of the lifetime transfer and included this value as part of the deceased’s Estate, on which Inheritance Tax fell to be paid.
The Solution:
By adopting a pragmatic approach, we obtained authority from the claimants to represent their interests with a view to minimising the claim albeit we were instructed by the indemnity insurers. We approached the Inland Revenue, arranged to meet with them and ultimately were able to persuade them that there was a transfer of value as at the earlier date of delivery of the Disposition rather than a transfer of value as at the date of recording the Disposition.
The Outcome:
By adopting this pragmatic approach, the value of the claim against the solicitors was reduced significantly and the value of the land transferred was not included in the Estate.