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AUGUST 2011

This has been a year of Royal weddings and opportunity for national celebration.  Financial issues are not likely to give rise to tension for the Royal couples, but here are some sensible planning points for any couple entering into a marriage or civil partnership.

Know where you stand

A prenuptial agreement may not be a romantic gesture, but it is very sensible and increasing in use. Addressing key issues before the marriage can provide peace of mind for both parties.   Where, as with the Royals, one party is part of a successful family firm, it can also provide security for business ownership in the future. If not addressed before marriage, then a postnuptial agreement can be made.

Wedding gifts

Each parent can give a cash gift of up to £5,000 and each grandparent up to £2,500.  This is free of inheritance tax and is in addition to the usual annual exemption of £3,000 per person.  The gift must be made or promised on or shortly before the wedding day.

Home, sweet home

If a couple is buying a property together then they need to address issues of ownership.  They may be making unequal contributions to the purchase or to the mortgage and these can be expressed in a Declaration of Trust.  It will then be important that the couple buy the property as “tenants in common”.

Planning for the inevitable

It is to be hoped that a Will will not be relevant for many years to come, but life is anything but predictable.  Many people make false assumptions about what would happen to their estate if they died without making a Will.  The only way to protect those whom we care about most is to have a Will properly prepared and keep it regularly under review.

.… and a case of bigamy!

A case was heard in the Chancery Division of the High Court on 19th July which concerned whether the Trustees of a Settlement, the beneficiaries of which had to be legitimate children of the 13th Duke of Manchester, could benefit two children who were the products of his bigamous marriage in California in 1993.  Were the children of a void marriage “legitimate” in the eyes of the law?  The issue in this case was complicated by the fact that English, Australian and Californian laws on illegitimacy were all of relevance.  It was decided that if either parent reasonably believed the marriage was valid, then the children would be legitimate. In this case the mother reasonably believed that the marriage was valid and so the Trustees could benefit the children from the Trust.

If you would like any further information about the issues raised in this article please contact Clare Jeffries (cjeffries@gdlaw.co.uk), or any other member of Goodman Derrick LLP’s Private Client team on 0207 404 0606.  This guide is for general information and interest only and should not be relied upon as providing specific legal advice