Liz Norris was instructed on behalf of a client who wished to pursue her mother’s solicitors for negligent inheritance tax planning advice.
Her client’s mother had sought advice from solicitors about her inheritance tax position. As a result of the advice received she transferred the title to her property to her daughter, Liz’s client. Unfortunately the transfer of the property was futile as far as saving inheritance tax was concerned as she continued to live in the property. As a result the transfer was designated as a gift with reservation and had no impact on inheritance tax whatsoever. Unfortunately for Liz’s client it had the added complication that she would be liable for capital gains tax when she ultimately came to sell the property.
Consequently, Liz successfully pursued the solicitors who had given the negligent advice. As part of the settlement, the property was transferred back to the client’s mother and the capital gains tax incurred by our client on this transfer was paid in full by the solicitors. The client, whilst obviously frustrated at having to undertake such action as a result of the former solicitor’s failings, was delighted that she had not suffered financially as a result of the settlement reached.