RSPCA secures overturning of adverse construction of will
(Source: http://www.solicitorsjournal.com/story.asp?sectioncode=2&storycode=17534&c=1)
The RSPCA has successfully challenged the interpretation of a will to secure a greater share of a deceased donor's estate.
George Mason’s will provided that his friends Norman and Patricia Sharp on the one hand, and his brother John Mason on the other, should be given an amount equal to the maximum possible without inheritance tax being payable. The amount would be split 78 per cent to the Sharps and 22 per cent to George's brother.
The will also provided that the Sharps would inherit his house, with the RSPCA being entitled to the residuary estate.
In addition, any IHT payable on the transfer of the property would be paid out of the residuary estate.
George’s estate comprised £771,178 in bank and building society accounts and £12,832 in cash. At the time of death the nil-band rate was £300,000, and the executors divided up the funds giving £234,000 to the Sharps and £66,000 to John.
The property was valued at £169,000 for probate purposes. It was transferred to the Sharps free of IHT, which had been paid out of the residuary estate, leaving £302,241 to the RSPCA.
The animal charity challenged the executors’ construction of the will, saying the property should have been taken into account to calculate the value of the estate.
It failed at first instance but the Court of Appeal in RSPCA v Sharp and Ors [2010] EWCA 1474 found that it could not have been the intention of the deceased to construe the will as it had been.
Overturning Mr Justice Smith’s ruling, Lord Justice Patten said the construction adopted by the judge “would involve a complete re-drafting” of the will.
Earlier this month the RSPCA lost in the case brought by Christine Gill whose mother had left most of her and her deceased husband’s estate to the animal charity. The Court of Appeal found in this case that Joy Gill did not have the requisite level of knowledge and approval and that her will was invalid.
