Giles v The Royal National Institute for the Blind & Ors
2014
CHANCERY DIVISION
United Kingdom
CORAM
- THE HONOURABLE MR JUSTICE BARLING
Areas of Law
- Probate and Succession
- Equity and Trusts
2014
CHANCERY DIVISION
United Kingdom
CORAM
AI Generated Summary
The court heard a claim to rectify a deed of variation intended to reduce inheritance tax by redirecting Ellen Bolton's entitlement under Hilda Bolton's will to four charities. The deed, as drafted, did not reflect this intention, nor did it eliminate the inheritance tax liability as intended. The court granted the rectification, amending the deed to accurately redirect the property and correct clerical errors. The legal principles in the decision emphasized the need for convincing proof of the donor's or parties' true intentions when seeking rectification.
JUDGMENT
Introduction
This is a claim brought under Part 8 of the CPR for rectification of a deed of variation dated 24 November 2007 (“the Deed of Variation”) which purported to alter the provisions of the will of Hilda Elsie Bolton with a view to reducing the incidence of inheritance tax, pursuant to section 142 of the Inheritance Tax Act 1984 (“the 1984 Act”).
The claim for rectification is not opposed by any of the Defendants (“the Four Charities”) or by Her Majesty’s Revenue and Customs (“HMRC”). A claim for refund of inheritance tax has been made and will trigger a repayment insofar as the application for rectification is successful. I have been shown correspondence from HMRC indicating that they did not wish to be joined as a party and do not oppose the application.
Neither the Four Charities nor HMRC were represented at the hearing. The Claimant was represented by Mr David Yates, to whom I am grateful for his helpful analysis of the relevant principles and case-law. In addition to his skeleton argument, he also supplied a short supplemental note after the hearing.
Background
The Claimant, Melinda Giles, brings the claim in her capacity as the administratrix of the estate of Hilda Elsie Bolton and as executrix of the estate of Hilda’s sister, Ellen Mary Bolton. The background is set out in the Claimant’s witness statement dated 31 October 2013 (“the Witness Statement”).
Hilda was born on 21 October 1908 and died on 6 February 2006. Ellen was born on 5 November 1914 and died on 11 September 2007. There was a third sister, Anne, who died on 11 October 2006. However, the present matter arises out of the interaction of the wills of Hilda and Ellen.
On 4 April 2005 Hilda made a will (“Hilda’s Will”). Ellen was the beneficiary of Hilda’s Will in two respects:
(1) As beneficiary of a specific devise of a property, 43 Crosby Road, Westcliff on Sea, Essex (“the Property”), under clause 2(a) of Hilda’s Will
(2) As a residuary beneficiary under clause 5.
Clause 7 of Hilda’s Will provided that “the Inheritance Tax payable on my death in respect thereof shall be payable out of my Residuary Estate in exoneration of the specific legacies given by this my Will.”
As I have said, Hilda died on 6 February 2006 whilst Ellen lived until 11 September 2007. Consequently, Ellen benefited under Hilda’s Will, both by clause 2(a) in respect of the Property and as the residuary legatee. The inheritance tax due on Hilda’s estate was calculated, on an initial basis a