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February Articles

Stories included

Wealthy place conditions on children's inheritance

‘Poor preparation' led to delays over watered down HIPs

Husband fails to reduce money paid to ex-wife

Battle of wills divides family after grandmother's death

Property searches to get faster and cheaper

New commissioner promises a fresh start for child maintenance

Research shows compensation culture is a myth

Injured prison officer entitled to claim damages

 

Wealthy place conditions on children's inheritance

Many wealthy families now place strict conditions on their children's behaviour before allowing them to inherit large sums of money, according to new research.

Barclays Wealth and the Economist Intelligence Unit surveyed 790 people across the world with assets of more than £100,000 to invest. The researchers found that more than a third of those questioned thought it was a bad idea to leave large sums to their children.

Surprisingly, perhaps, those who had inherited wealth themselves were less willing to pass on large sums than people who had built up wealth through their own efforts. There was an understandable concern among those interviewed that inheriting money might reduce their children's desire to succeed in their own right.

The answer for many families is to set conditions whereby children have to accomplish certain goals before they can inherit. This approach was particularly popular with the very wealthy. For example, nearly 60% of people with assets above £5m insist that their children must do things like gain a university degree or hold down a responsible job for a specified amount of time.

Others have decided that while they will provide for their families, they will also leave large sums to worthwhile causes.

Very few of us consider ourselves to be rich but whatever assets we have the principles are the same. If you work hard all your life and manage to accumulate some wealth then it is only natural that you should want to pass some of it on to your children. On the other hand, you want to ensure that they appreciate what they are getting and are able to cope with it responsibly.

It is not surprising therefore that an increasing number of people are giving more and more thought to inheritance planning. If you want you wishes to be carried out then it is important to start preparing now.

It may be necessary to update your will to stipulate how you want your wealth to be divided and what conditions if any you may wish to apply. Even if you don't feel it necessary to make such stipulations it is still important to make sure your will reflects your current thinking. People's circumstances and views change as time goes by and so a will made several years ago may divide up your assets in a way that is no longer suitable.

It is also important to get advice about inheritance tax so your beneficiaries don't end up giving large amounts of your money back to the Treasury. Trusts can often provide an efficient way of passing on wealth.

Please contact us if you would like more information about wealth management

 

‘Poor preparation' led to delays over watered down HIPs

The Government was ill-prepared and showed a lack of nerve when it delayed the introduction of Home Information Packs (HIPs) last year.

That's the conclusion of a report by the select committee of MPs which monitors the work of the Department for Communities and Local Government (DCLG) – the department responsible for introducing HIPs.

HIPs were highlighted by the Government in 2006 as a key priority for the coming year.

The select committee's critical report says: “Within weeks of this the then Secretary of State Ruth Kelly announced that the pack would not include a mandatory Home Condition Report, intended to save house buyers the cost and time spent purchasing expensive surveys of their own.

“HIPs should have then been rolled out in June 2007 but were introduced two months late in August following considerable uncertainty and then only for homes with four or more bedrooms. Three-bedroomed homes were added in September, Only in December 2007 were the weakened HIPs being introduced for all homes marketed for sale.”

The Government said the decision to remove Home Condition Reports from HIPs was taken because there weren't enough trained inspectors to provide them but the select committee's report dismisses this explanation saying: "There were not enough inspectors because DCLG first watered down and then repeatedly delayed the introduction of Hips.”

HIPs have always proved controversial ever since the idea was first put forward but watered down or not, they are now compulsory when selling a home in England and Wales . Please contact us if you would like more information about HIPs and how to obtain one.

 

Husband fails to reduce money paid to ex-wife

A husband has lost his appeal to have the lump sum he paid to his former wife reduced because she later remarried.

The couple divorced in 1993 and the husband complied with a consent order to make regular maintenance payments to her. In 2005, he contacted her to say that he was about to start taking his pension and his income would be reduced.

They agreed that he should pay her a one-off lump sum in return for being able to stop paying maintenance in future. He asked her if she intended to marry another man with whom she had started a relationship. She replied that she had no plans to marry or cohabit. The couple then agreed on a lump sum payment of £125,000 and a consent order was made to that effect.

In 2006, the wife did in fact remarry. Her former husband applied to have the consent order set aside so the lump sum could be reduced. He said the sum had been agreed on the basis that his former wife would not remarry and the consent order should therefore be ruled invalid.

However, the judge refused the application because he considered that the remarriage had not been planned when the lump sum was agreed and the wife was being open and honest about her intentions at that time.

The Appeal Court upheld the ruling saying that the wife's statement that she wasn't planning to marry could only be taken as her intention at that specific time. It could not be taken to imply that she would never marry again. That was a risk her former husband had to take.

 

Battle of wills divides family after grandmother's death

The Court of Appeal has had to decide which of two conflicting wills drawn up by a grandmother was the most recent and therefore the one that should decide how her estate is divided between members of her family.

When the woman died her will showed that she had left her estate to her son. Probate was granted but then the woman's grandson discovered another will which left the estate to him and another relative.

The grandson applied for a declaration that the second will was his grandmother's last true will and that the grant of probate of the earlier will should be revoked. The case proved complicated and the judge considered that there was some inconsistencies in the evidence.

Nevertheless, the court decided that it was reasonable to conclude that the grandmother knew and approved of the second will and it should therefore be accepted as representing her true wishes. That ruling was then upheld by the Court of Appeal.

It is not uncommon for disagreements to emerge within families because a close relative did not make a will or failed to update an existing will to reflect a change of opinion as to how their estate should be divided.

This case, like many others, illustrates the need for people to ensure their wills are drawn up properly and kept up to date. It is also important to let your family know where your will is and the name of the solicitor that helped you to draw it up.

 

Property searches to get faster and cheaper

The Government has announced new measures to deliver faster and cheaper property searches to speed up the process of buying and selling houses.

Local authorities should now aim to provide access to their data to private search companies within one working day. In return, they will be able to recover their costs by setting a fair charge for the improved access.

The Department for Communities and Local Government says search provision is improving but there can still be wide variations across the system. The best councils can provide information within hours but the worst can take two weeks. Some private search companies are often unable to access council data and so they have to take out insurance to cover any gaps in the information they provide.

Council charges for information can vary from £40 to £280.

The new system follows recommendations made by the Office of Fair Trading to improve competition between the public and private sector in the provision of searches.

Search results are a compulsory element of Home Information Packs which are now needed when selling homes of all sizes in England and Wales .

 

New commissioner promises a fresh start for child maintenance

The Commissioner who will lead the new organisation which replaces the much criticised Child Support Agency has now been appointed.

The new organisation is to be called the Child Maintenance and Enforcement Commission (CMEC). Its task will be to provide a simpler yet better way of assessing and collecting child maintenance. The first Commissioner is to be Stephen Geraghty who was called in to make much needed improvements at the Child Support Agency in 2005.

One of the main proposals for change is that parents should be encouraged to reach agreements between themselves over child maintenance whenever possible. However, CMEC will have the power to enforce payments if the parents can't reach an agreement. It will also have more authority to pursue debt.

A spokesman for the Department of Work and Pensions said: "Parents have an absolute responsibility to support their children. These reforms will help ensure that this happens. Our proposals to get visibly tougher on enforcement send out a clear signal that non-payment of maintenance will not be tolerated.

“And, above all, they will deliver a system that properly meets the needs of the parents and children who depend on it, helping to ensure that families and children do not slide into poverty when parents split up."

Mr Geraghty said: “ The Commission marks a new era in child maintenance. It gives us the operational freedom to develop new services to support parents to take more responsibility for their children.”

CMEC is being introduced as part of the Child Maintenance and Other Payments Bill which is now awaiting final approval from Parliament

 

Research shows ‘compensation culture' is a myth

Claims about compensation culture spiralling out of control have been contradicted by research carried out at Warwick University 's School of Law .

The research shows that the number of claims going through the courts has actually fallen rather than increased over recent years. This reinforces statements from both MPs and the Government that compensation culture is largely a myth.

The Warwick researchers wanted to see whether changes introduced in the Management of Health and Safety at Work regulations 2003 had any impact on the number of compensation claims in relation to workplace incidents and accidents.

They analysed the number of claims going through the courts between 1999 and 2003. Contrary to popular perception, they found there was dramatic fall in numbers. The number of personal injury actions in the Queen's Bench Division of the High Court fell from 1187 in 1999 to 570 in 2003.

It was a similar story in the County Courts where the number of small claims recorded under the heading of, Negligence – personal injury, fell from 3560 in 1999 to 2210 in 2003.

The research only measures one area of course but the findings are backed up by other sources. Britain is not moving towards a compensation culture driven by a significant increase in litigation.

The Select Committee also observed that alleged fears over health and safety issues have sometimes been used by organisations as an excuse to ban activities that they don't want to provide for purely financial reasons.

The Government agreed and made it clear that one of its objectives in the Compensation Act was to tackle perceptions that can lead to a disproportionate fear of litigation and risk averse behaviour.

Hopefully, the Warwick University research together with statements such as those from the Select Committee and the Government will go some way to exploding the myth of compensation culture which has done so much damage.

Many genuine injury victims have been discouraged from making a claim and getting the damages they deserve because they have been made to feel they are somehow doing something wrong.

Nothing could be further from the truth. People who have been injured as a result of someone else's negligence are entitled to compensation and they should not be made to feel uneasy about asserting their rights. Anyone is this position should seek legal advice from a solicitor as soon as possible.

Injured prison officer entitled to claim damages

A prison officer who had to give up his job after being attacked by an inmate has won the right to claim damages against the Ministry of Justice.

The incident happened after the prison officer had been involved in an exercise with other members of his team to open a cell which had been closed and barricaded by an inmate

The operation was successful and the prison officer and a colleague then escorted the inmate to the segregation unit. The officers were not given the prisoner's history sheet outlining his violent past.

The next day the officer was attacked without warning when he entered the prisoner's cell. He was hit in the eye and had to give up his career in the service because of his injury. The officer later discovered that the inmate had previously been involved in 20 violent incidents including 14 involving prison staff.

The officer claimed that he would have taken extra precautions if he had been alerted to the inmate's record and the attack could have been avoided. However, the Ministry of Justice said the officer knew about the inmate's violent nature from the fact that he had barricaded the cell the previous day.

The High Court found that the Ministry was negligent in not alerting him to the prisoner's violent past. It was the Ministry's duty to keep the officer reasonably safe and so it should have provided him with information about the inmate's past.

 

January

Rush to beat HIPs deadline creates dip in house prices

Restaurant owners can keep £10m left to them in friend's will

Don't risk your money – get the law on your side this year

New Year Resolution: make a will or bring your existing will up to date

New Year Resolution: consider making a pre-nup or living together agreement

New Year Resolution: consider the advantages of Lasting Powers of Attorney

Woman fails to win a share of home where she lived with former partner

New Year prompts surge in divorce inquiries

Children's names changed to protect them from abduction

Teenager paralysed in drink drive accident awarded £6.5m

Rush to beat HIPs deadline creates dip in house prices

The rush to beat the deadline for extending Home Information Packs (HIPs) to homes of all sizes saw a surge in the number of small properties being put up for sale in November and early December.

It led to a fall in house prices according to a survey carried out by the property website, Rightmove.

HIPs were introduced for four bedroom houses in August and then for three bedroom homes in September. The scheme was extended to properties with two or fewer bedrooms on 14 th December.

Rightmove says that in the first week of December 2006, 38% of properties coming on to the market had two or fewer bedrooms. That jumped to 48% over the same period in 2007 as people selling smaller properties tried to beat the deadline for acquiring HIPs.

The Rightmove survey examined more than 100,000 properties put on the market between 11th November and 8 th December 2007. The average asking price fell by 3.2% compared with the previous month. Two thirds of the fall was due to seasonal factors as the period before Christmas is traditionally quiet but the rest of the fall was down to the sudden surge of cheaper properties being put up for sale at the same time.

Miles Shipside, Commercial Director of Rightmove said: “New listings are very low at this time of year, so the artificial wave of ‘low-end sellers' has really distorted the average prices of new properties coming on to the market.”

Rightmove says the January figures are also likely to be down but February should bring a rebound because the HIP effect should have worked through the system by then.

Restaurant owners can keep £10m left to them in friend's will

The owners of a Chinese restaurant have been told they can inherit £10m left to them by a friend in her will.

Golda Bechal died in 2004 aged 88. She made a will in 1994 leaving nearly all her estate to her best friends, Kim Sing Man and his wife Bee Lian Man, who run a restaurant in Essex .

The High Court was told that Mrs Bechal had become sad and lonely after the death of her husband and the loss of her son Peter who died at the age of 28. She became close to the Mans and became like a member of their family, often visiting their restaurant and taking holidays with them.

After her death, her five nephews and nieces challenged the will saying that she suffered from dementia and didn't know what she was doing when it was drawn up. Mr Man was asked in court if he had expected to inherit nearly all of the estate but he said Mrs Bechal had not talked to him or his wife about her will and they were not present when it was drawn up.

Judge Sir Donald Rattee, QC, said he was satisfied that Mrs Bechal was aware of what she was doing when she drew up the will and was also fully aware of the extent of her estate. He said: “In my judgment, on the balance of probabilities, Mrs Bechal had testamentary capacity. The will executed by Mrs Bechal in August 1994 was valid."

Don't risk your money – get the law on your side this year

Each year thousands of well meaning people create heartache for themselves and their families at the same time as throwing away large amounts of money unnecessarily. Yet a few simple New Year resolutions could provide peace of mind for you and your loved ones.

New Year Resolution: make a will or bring your existing will up to date

Consider the example of former dental nurse Cyd Negus. She met businessman Henry Bahouse in 1995 and they planned to marry. He promised to provide for her but he suffered from depression and took his own life in 2005.

In the midst of her grief Ms Negus then received another blow, for it turned out that Mr Bahouse had not updated his will to include her. All his estate went to the children of his first marriage and she was left with nothing.

Ms Negus had no choice but to take legal action. The judge ruled in her favour saying that she had effectively been Mr Bahouse's wife in all but name and he had intended to provide for her. She was awarded more than £600,000 with the rest of the £3m estate going to Mr Bahouse's family.

It could be said that justice was done in the end but consider the two years of stress, heartache, time and money involved with two sides of a family pitted against each other in court at a time when they are all still grieving for someone they loved.

Yet it could all have been avoided if Mr Bahouse had only got round to the simple task of updating his will. If people don't make a will then their estate will be divided up along rules laid down by law. It means large sums money may go to members of the family you wouldn't choose to leave anything to and some could end up with the taxman.

New Year Resolution: consider a living together agreement

Most people will have read about the acrimonious divorce proceedings between Sir Paul McCartney and Heather Mills. She reportedly offered him the chance to draw up a pre-nuptial agreement when they married but he declined on the basis that it seemed a little cold and unromantic.

Pre-nups are often associated with celebrities but they are becoming more widespread as people accept that marriages do often fail and in those circumstances, anything that can reduce the legal wrangling over money has to be worth exploring. Pre-nups aren't legally binding in this country but they are still helpful as the courts will take them into account as long as they are fair to both sides.

People who co-habit should also consider making legal arrangements because they are far more vulnerable than married couples. Many people believe they have a common law marriage which provides them with legal rights but this is not the case. Women are particularly at risk as they could find themselves living with a man for years, contributing to household expenses and then be left with nothing when the relationship breaks up because everything is in their partner's name.

New Year Resolution: consider Lasting Powers of Attorney

Many people had not even heard of powers of attorney until they became the theme of a powerful storyline featuring the character Mike Baldwin in Coronation Street . The family squabbles depicted may have been fictitious but they will have been all too real for thousands of people throughout the country.

The Baldwin character was suffering from a debilitating mental illness which meant he could no longer properly control his business affairs.

Such situations can be avoided in real life if you appoint someone now to act as your attorney should failing health ever prevent you being able to make decisions for yourself. The law has just been modified to improve the system with the introduction of Lasting Powers of Attorney. They allow you give someone authority to run your business affairs if the need arises and also to make decisions on your behalf about what medical treatment you should receive. This can even extend to deciding whether or not a life-support machine should be switched off.

There are safeguards to prevent the system being abused so you can prepare for the possibility of ill health secure in the knowledge that you can leave important decisions in the hands of someone you trust. If you don't have such arrangements in place then your family may have to go through complicated and time-consuming legal processes just to get the authority to help run your affairs for you. That is the last thing they want at a time when they will already be worried about you and your failing health.

Woman fails to win a share of home where she lived with former partner

A woman has failed to win a share in the home in which she lived with her former partner for 15 years.

The couple were not married but the court accepted that they had effectively lived together at the property as husband and wife. The man owned the house before they met. However, she then moved in and lived there until their relationship broke up 15 years later.

During their relationship she had helped him with his business and eventually became a partner. Their income from the business was used to pay the mortgage and for renovations to the property which they carried out together.

When the relationship ended the woman claimed a share in the property on the basis that there was an understanding between them that they owned the property jointly.

However, the judge ruled that there was insufficient evidence to support her claim. That ruling was upheld by the Court of Appeal which said the fact that money from the couple's business was used to pay the mortgage was not sufficient evidence to prove that there was an agreement between them that she should have a beneficial interest in the property.

It is not uncommon for financial disputes to emerge when co-habiting couples separate. Many women believe that a couple who live together as husband and wife have a common law marriage which gives them the same rights as a married couple. This is a myth as there is no such thing as a common law marriage.

The Government recently urged co-habiting couples to draw up living together agreements to protect themselves and help to avoid bitter disputes once the relationship ends. Such agreements may not seem very romantic but they can help reduce disagreements and stress.

New Year prompts surge in divorce inquiries

The New Year is traditionally a time when people take stock of their lives and look to make a fresh start.

Sadly, for many married couples who have been experiencing difficulties in their relationships, it can be a time when they decide the only way forward is for them to separate. Family lawyers always receive a surge in inquiries at this time of year from people wanting to begin divorce proceedings.

It's a traumatic time for all concerned. As well as the emotional upheaval there are numerous practical matters to consider such as what arrangements will be made for the children and how joint assets will be shared out.

Emotion and bitterness can often cloud issues but both partners will do themselves a big favour if they try to be honest and reasonable right from the outset. It's not uncommon for people to dig their heels in and complicate matters but it rarely does much good. In the end, the courts will impose a settlement, if necessary, which is fair to both sides.

Each partner should realise that as a general principle, everything they own irrespective of where it came from will be regarded as part of their joint assets to be shared out. The law also works from the starting point that these assets should be shared out equally unless there are good reasons to justify an alternative split.

Many people try to tip the balance in their favour by concealing their assets or squirreling money away in a secret bank account. The other partner can try to counter this financial infidelity by keeping copies of bank statements and similar documents whenever possible. If they suspect that their partner is concealing assets they should inform their solicitor so those assets can be frozen and included in the divorce settlement.

Some people think they can circumvent the system by putting money into their pension but that won't work either as pensions are now considered as part of the pot to share out.

For most couples, the most valuable asset will be the family home. Sometimes it may have to be sold so the proceeds can be divided; sometimes it's possible for one party to remain there in return for concessions in other parts of the settlement.

There could be an issue if the family home is in only one partner's name. If this is the case then your solicitor may need to register a caution against the property so that your partner can't sell until the divorce proceedings are settled.

Joint bank accounts and credit cards will have to be cancelled and replaced by individual accounts. Wills should be revised as each party makes a clean break and reassesses how they want to provide for their loved ones in the future.

Most couples try to reach amicable arrangements over the children but where this is not possible then mediation may help. A trained mediator can act as an honest broker enabling a couple to overcome stumbling blocks. Mediation can also help couples to remain on good terms, which is the best approach in the long term, especially if children are involved.

If a couple still can't agree then they may need to go to court. They should realise, however, that a court will always try to do what is best for the child rather than what may seem best for the parents.

It's unlikely that divorce can ever be easy but couples can save themselves a lot of stress if they are prepared to act reasonably and get professional advice from the beginning to ensure a fair settlement.

Children's names changed to protect them from abduction

A mother has won the right to change her children's surnames to reduce the risk of them being abducted by their father.

The family court was told that after the couple separated, the father wanted his two children to spend half the year with him in Mexico . The mother said that when she rejected the request, he started to seriously harass her and threatened to take the children away. However, the father then alleged that she had abused the children and that they were also at risk from her new partner.

The mother moved to a refuge. A psychologist gave evidence that the father showed symptoms of a personality disorder and the children were at risk of being harmed if he had contact with them.

The court suspended the father's contact rights and gave permission for the children's surnames to be changed to protect them from the risk of abduction. The father appealed but the rulings have been upheld by the High Court.

The judge said the father's threats to take the children had to be taken seriously. They needed stability and would suffer enormous stress if they were abducted so changing their names to reduce the risk would be beneficial for their welfare.

Teenager paralysed in drink drive accident awarded £6.5m

A woman has been awarded £6.5m compensation by the High Court for injuries caused by a hit and run driver.

Nikki Buckley was still a teenager when she was hit by a car which mounted the pavement near her home in the West Midlands in 2002. Miss Buckley, who is now 22, sustained spinal injuries which have left her paralysed. She now has only minimal use of her hands and needs round the clock care.

Some of her compensation pay-out will be used to provide specialised equipment and accommodation.

The driver was later jailed for two years in 2002 for driving under the influence of alcohol and for failing to stop at the scene of an accident.

 

December - Late news update!

Woman wins appeal against ruling that she must pay divorced husband's debts

A divorcee who faced having to pay £120,000 to help clear the debts of her former husband even though they made a clean break settlement when they divorced four years ago has won her case in the Court of Appeal.

David and Wendy Haines owned a house near Stourport-on-Severn in Worcestershire while they were married.

They divorced in 2003 and Mrs Haines received the house as part of the settlement ordered by the court. When Mr Haines petitioned to be declared bankrupt two years later, the bankruptcy trustees took legal action to set aside the divorce settlement. The High Court ruled in their favour which meant that Mrs Haines would have had to give back her husband's share in the house, estimated to be £120,000.

The High Court ruling had overturned the concept that divorce settlements ordered by the courts could not be set aside by bankruptcy proceedings. It would have applied retrospectively so people who divorced up to five years ago could also be affected.

If that ruling had stood it could have had major implications for other clean break divorce settlements. Some experts feared it could have led to some people running up debts and declaring themselves bankrupt just to thwart a clean break settlement ordered by a court.

However, the Appeal Court has now ruled that Mrs Haines should be allowed to keep all the assets granted to her in the original settlement. Lord Justice Rix said it would be “unfortunate in the extreme” if a settlement ordered by a divorce court could later be set aside because the husband went bankrupt.

The trustees are now considering whether to try to take the case to the House of Lords. We shall keep clients up to date with developments.

December

Woman wins fight for a share in her dead lover's estate

Boys win right to live in England despite their mother's wishes

Extending HIPs to all homes will ‘help first time buyers'

Man inherits farm after 25 years working for nothing

Chancellor's announcement sparks interest in inheritance tax planning

Woman appeals against ruling that she must pay divorced husband's debt

Work accident victim awarded £2.4m compensation

Woman wins fight for a share of her dead lover's estate

The lover of a businessman who committed suicide has won a court battle with his family to be given a share of his £3m estate.

Cyd Negus and Henry Bahouse met in 1995 and went on to enjoy a lavish lifestyle together. Ms Negus told the High Court that Mr Bahouse had promised to look after her and they had even intended to marry. However, Mr Bahouse suffered from diabetes and depression and took his own life without rewriting his will to provide for her. His family inherited his estate.

She challenged the will on the grounds that the law allows someone who was financially dependent on the deceased to lodge a claim if they have not been provided for in the will. Ms Negus won her case with the judge deciding that she had effectively been Mr Bahouse's wife in all but name and he had intended to provide for her. She was awarded more than £600,000 with the rest of the estate going to Mr Bahouse's family.

The case was no doubt traumatic and difficult for all concerned and raises some interesting points. The first and most obvious is that this kind of stress and heartache could be avoided if people make a will and keep it up to date. That way they can ensure their estate is divided according to their wishes.

The other point is that it is possible in certain circumstances to successfully challenge a will if a person feels their reasonable expectations to inherit have not been met.

Please contact us if you would like more information.

Boys win right to live in England despite their mother's wishes

Two British born brothers have won an Appeal Court ruling allowing them to live in England with their father against the wishes of their French mother who wanted them stay with her in France .

One of the presiding judges, Lord Justice Thorpe, described it as a very exceptional case.

The marriage between the boys' British father and French mother broke down in 2005. The two brothers, aged 11 and 16, had lived all their lives in England and spoke hardly any French. Their mother took them to live with her in the south of France but they couldn't settle.

Then, after visiting their father in England , they refused to return to France because they said they hated living there. The mother suspected they had been influenced by their father and took legal action to have them returned to France under the Hague Convention. The Convention upholds the international agreement banning abduction and normally demands that cases should be heard in the courts where the children had been living – in this case, France .

However, the High Court noted that the boys had been very strong in expressing their view that they wanted to stay in England and ruled that they should be granted their wish.

The Appeal Court judges agreed, saying that although it was right that the principles of the Convention should be upheld, these were exceptional circumstances as the boys had expressed their wishes so strongly. They refused to allow the mother to appeal against the High Court ruling.

Extending HIPs to all homes will ‘help first time buyers'

The decision to extend the Home Information Pack system to homes of all sizes will be a major help to first time buyers, according to Government ministers.

HIPs were first introduced for four bedroom homes in August and then for three bedroom homes in September. From 14 th December onwards they are compulsory on homes of all sizes in England and Wales .

The purpose of the packs is to make the system more efficient by obliging the vendor to provide essential information about the property as soon as it is placed on the market. The packs contain information that buyers used to have to find out for themselves such as the results of local searches.

They also contain Energy Performance Certificates which rate the energy efficiency of the property. Ministers say the extension of HIPs to smaller properties will benefit first time buyers as they will no longer have to pay for such things as local searches.

According to the Department for Communities and Local Government, the packs are already helping consumers because increased competition is reducing the cost of property searches. It says that 85 local authorities have already reduced their search charges by an average of £30.

Housing Minister Yvette Cooper said: “ HIPs and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too. All home buyers will be able to benefit from energy efficiency advice, with those receiving low green ratings of 'F' and 'G' especially targeted for support and grants to make improvements to cut their costs and carbon emissions.”

Early monitoring of the scheme suggests that the roll out has gone relatively smoothly. Government figures show that HIPs are taking on average 7 to 10 days to prepare and most property, drainage and water searches are delivered within 5 days. Energy Performance Certificates are being prepared on average within 2 to 4 days

Anyone selling a house regardless of its size must now provide a Home Information Pack. Please contact us if you would like more information.

Man inherits farm after 25 years working for nothing

A man has won his legal battle to inherit the farm where he worked without pay for 25 years.

David Thorner, who is 57, spent most of his adult life helping out on his cousin's farm in Somerset . He agreed not to take any wages on the understanding that he would inherit the land, worth £2m, when his cousin Peter Thorner died. He lived on little more than pocket money from his parents in the meantime.

Peter made a will leaving the estate to David. Later he made an alteration to the will relating to a completely different matter but then never returned it to his solicitor. When he died the will could not be found.

In the absence of a will, other members of Peter's family claimed the estate. The case ended up in the High Court which recognised David's remarkable commitment and accepted that his cousin Peter had wanted him to inherit.

David was awarded the farm with the remainder of the estate, valued at over £1m, going to other members of the family.

Chancellor's announcement sparks interest in inheritance tax planning

The announcement by the Chancellor Alistair Darling that the inheritance tax allowance can be transferred between married couples and civil partners has prompted thousands of people to review their wills, trusts and overall financial arrangements.

The changes are backdated indefinitely allowing widows, widowers and bereaved civil partners to use their deceased partner's allowance when passing on their estate to their children and families. People in this situation may be among the main beneficiaries of the changes and should seek legal advice as soon as possible.

Otherwise, the Chancellor's announcement doesn't change the situation nearly as much as one might imagine because it has long been possible for couples to effectively double their tax threshold by the use of trusts. Thousands of couples already have such arrangements in place. The changes also have no effect on single people and those who cohabit.  

Everybody, whether married or not, would be well advised to explore all the avenues available to protect their family's wealth for the next generation. A little careful planning now can prevent thousands of pounds being wasted in the future.

Woman appeals against ruling that she must pay divorced husband's debts

A divorcee who may have to pay £120,000 to help clear the debts of her former husband even though they made a clean break settlement when they divorced four years ago has taken her case to the Court of Appeal.

The outcome could have serious implications for all divorced couples who could find themselves liable for thousands of pounds of debt if their former spouse is declared bankrupt.

David and Wendy Haines owned a house near Stourport-on-Severn in Worcestershire while they were married. 

They divorced in 2003 and Mrs Haines received the house as part of the settlement ordered by the court. When Mr Haines petitioned to be declared bankrupt two years later, the bankruptcy trustees took legal action to set aside the divorce settlement. The High Court ruled in their favour which means that Mrs Haines may have to give back her husband's share in the house, which has now been sold.

The High Court ruling overturned the concept that divorce settlements ordered by the courts could not be set aside by bankruptcy proceedings. It applies retrospectively so people who divorced up to five years ago could also be affected.

Mrs Haines has now challenged the decision in the Court of Appeal. If the ruling goes against her it is likely to have major implications for other clean break divorce settlements. Some experts also fear it could lead to some people running up debts and declaring themselves bankrupt just to thwart a clean break settlement ordered by a court.

The case is still being considered. We shall keep clients up to date with developments.

Work accident victim awarded £2.4m compensation

A self-employed decorator who suffered brain damage after falling through faulty scaffolding has been awarded a lump sum of £2.4m in compensation.

Alan Miah, who's 45, was left permanently disabled as a result of the fall in 2003. He now has to use a wheelchair and will need constant care for the rest of his life.

Mr Miah had been sub-contracted to work for Thorne Barton Estates Ltd of Hemel Hempstead on an office building in Windsor that was being converted into residential flats. He fell 3.5 metres when the scaffold board he was standing on broke beneath him. The scaffolding had been erected by Gemini Riteway Scaffolding Ltd of Maidenhead.

The incident was investigated by the Health and Safety Executive. One of its inspectors, Karen Morris, said: This was a terrible accident, but one which was avoidable. An inspection of the scaffold after the incident showed that the scaffold board which broke had several knots in it, which contributed to its lack of strength and subsequent failure.”

Thorne Barton Estates Ltd will pay 30% of Mr Miah's compensation and Gemini Riteway Scaffolding Ltd will pay 70%. Both companies were also fined for breaching health and safety regulations.

As well as the £2.4m lump sum, Mr Miah will also receive an index-linked payment of more than £100,000 for the rest of his life.

November

Stories included

Chancellor doubles inheritance tax threshold for couples

HIPs cause ‘wild fluctuations' in house prices

Son overturns will that gave £8.2m to the Tories

Widow fails to stop husband's first wife inheriting £100,000

Divorcing husband wins appeal over sale of house

Separated couples urged to avoid Christmas disputes over children

Court orders child should live with grandparents

New council will promote family mediation

Asbestos illness sufferers lose right to compensation

Employer responsible for employee's injuries

 

 

 

Chancellor doubles inheritance tax threshold for couples

The Chancellor Alistair Darling has effectively doubled the inheritance tax threshold by making it transferable between spouses and civil partners.

It means the threshold for married couples is now £600,000 and will rise to £700,000 by 2010.

The measure, which was announced in the Chancellor's pre-budget report, is seen by most political commentators as the Government's response to Conservative proposals to reform inheritance tax so only millionaires would have to pay it.

Until Mr Darling's announcement, inheritance tax was levied at 40% on the value of the estate over and above the threshold of £300,000. Widows and widowers were exempt from the tax but it then become payable on their death. Because the allowance is now transferable it doubles the threshold meaning that inheritance tax will not be paid on the first £600,000 of their estate.

Mr Darling said this means that 97% of estates will now be exempt from inheritance tax and there will be nothing at all to pay on assets transferred to a surviving spouse, even if the estate exceeds £600,000.

The changes are backdated indefinitely allowing widows, widowers and bereaved civil partners to use their deceased partner's allowance when passing on their estate to their children and families.

The measures are welcome but are not as generous as they appear at first sight. For example, it has long been possible for couples to effectively double their tax threshold by the use of trusts.

There is also the danger that inflation and rising house prices will soon reduce the value of the increased threshold, and although married couples will benefit there is no change in the situation for single people and those who cohabit.

It is still advisable for single people and couples alike to plan ahead and examine how the use of trusts and other measures can safeguard their family's wealth for the next generation.

Please contact us for details.

 

HIPs cause “wild fluctuations” in house prices

The introduction of Home Information Packs (HIPs) has led to “wild fluctuations” in the housing market, according to a survey by the property firm Rightmove.

The survey reveals that average house prices in England and Wales rose by 2.7% in the month up 6 th October. That was a complete reversal of the 2.6% fall in prices the month before. HIPs became compulsory on sales of four-bedroom houses in August and then for three-bedroom houses on 10 th September.

Rightmove says that in the week before 10 th September there was a 65% increase in the number of three bedroom properties coming on to the market as sellers tried to beat the deadline for requiring a Home Information Pack.

At around the same time, sellers of four bedroom houses were coming back into the market after waiting a few weeks to see how HIPs would work out. The combined effect was that a surge of three and four bedroom houses, which tend to be of higher value, came on to the market at the same time boosting the overall average price.

A Government spokesman said it wasn't surprising that prices had fluctuated over a short period because some sellers were tempted to beat the deadlines for acquiring HIPs. However, he said, prices were already beginning to level out as the property market stabilised.

HIPs are already compulsory for anyone selling a three or four-bedroom house and will soon be required on all homes.

The packs must contain an index of contents, an Energy Performance Certificate, a sale statement, standard searches by local authorities or evidence that a search has been requested, evidence of title and information on leasehold or commonhold sales.

Please contact us if you would like more information about HIPs or any aspect of buying or selling a home.

Son overturns will that gave £8.2m to the Tories

A businessman who left £8.2m to the Conservative Party has had his will overturned in the High Court following a successful challenge by his son.

The court was told that Branislav Kostic, a Serbian born businessman who settled in England in the 1960s, drew up a will in 1974 making his son Zoran the sole beneficiary.

However, he then began to develop a mental illness and suffered from delusions. He believed that there was an international conspiracy of “dark forces” which included close members of his family.

In the 1980s he wrote to Prime Minister Margaret Thatcher saying she was the only person who could protect the free world from bestial monsters. He later cut his son Zoran out of his will and left his money to the Conservatives.

When Mr Kostic died in 2005, Zoran challenged the will saying his father was suffering from a mental illness and that he would never have behaved in the way he did if he had been of sane mind.

The court ruled that the original will of 1974 should be validated so that Zoran was reinstated as the sole beneficiary.

This is an extreme case both in terms of the huge sums involved and the extent of Mr Kostic's mental illness. However, it illustrates that it is possible to successfully challenge a will if it seems to be unfair or out of character with the known wishes of the deceased person.

Sometimes a will is challenged because someone suspects that the deceased person was subjected to undue influence by their spouse, or perhaps a relative or carer. There may be occasions when there is even a suspicion that a will has been forged.

Second relationships started later in life often lead to a will being challenged when one of the partners dies. For example, a second wife may challenge a will if she feels her husband has not provided for her properly. From the other point of view, a person's grown up children will often make a challenge if they suspect that their deceased father has left too much to his second wife.

It is important that everyone should make a will and ensure that it is properly drawn up by a solicitor. However, people should also remember that it is possible to take legal action if they feel that something untoward has taken place in the making of the will.

 

Widow fails to stop husband's first wife inheriting £100,000

A woman who married a man just hours before he died has failed in her attempt to stop his first wife inheriting £100,000 from his estate.

Owen and Elizabeth Soulsbury married in 1966 and had three children. They divorced 20 years later but remained on good terms. He was ordered by a judge at Southampton County Court to pay her £12,000 a year.

In 1993, he suggested that he should stop paying her maintenance in return for leaving her £100,000 in his will. She agreed and the will was drawn up to that effect. By this time Mr Soulsbury had started living with another woman called Kathleen.

Mr Soulsbury later became ill with leukaemia and married Kathleen on the day he died in 2000. Kathleen then argued that her marriage made the will null and void and so she refused to pay the £100,000 to the first wife, Elizabeth.

However, a judge then ruled that Mr Soulsbury had entered into a binding agreement with his first wife which had to be honoured. Now the Court of Appeal has upheld that ruling.

The Appeal Court judges said that Elizabeth could have taken legal action at any time to force Mr Soulsbury to continue paying maintenance but she didn't do so because of the agreement about the will. She had therefore kept her side of the bargain and so Mr Soulsbury's estate was bound to honour it.

If the agreement wasn't honoured then Elizabeth would be entitled to take action against the estate for breach of contract.

The case raises important issues. It is true that marriage normally revokes existing wills and so couples should make new arrangements as soon as they are wed. That would clearly have been difficult in this case because of Mr Soulsbury's health and so the Appeal Court upheld the general principles of contract law because an agreement had been reached between Mr Soulsbury and Elizabeth.

The whole area of wills and probate can be complicated. It is important to get legal advice when drafting a will and making arrangements for the future.

Please contact us if you would like more information.

Divorcing husband wins appeal over sale of house

A man has won his appeal against a decision that his former wife should be given most of the equity in their home after it was shown that the full value of the property wasn't put before the judge at the original hearing.

The judge was led to believe that the house was worth about £250,000. He ordered that most of the equity from the sale should be awarded to the wife to help her buy a flat for herself and the couple's autistic son.

Within six months of the order an offer was made on the house for £285,000 – a full £35,000 more than the court had been told it was worth. The wife maintained that the increase in value was offset against a similar rise in the cost of the flat she wanted to buy.

However, the husband then discovered that the increase in value was not down to inflation over the intervening six months. He found marketing details from an estate agent dated only 15 days after the hearing which set the asking price at £285,000.

The Court of Appeal ruled that if the original trial judge had known this he would only have allocated the wife the amount she needed to buy her flat and would have awarded the rest of the equity to the husband.

The husband's appeal was therefore successful.

Separated couples urged to avoid Christmas disputes over children

Christmas and other holiday periods should be among the happiest times of a child's life but sadly they are often marred by divorced and separated parents arguing over access rights.

Tensions between couples often come to the fore at this time of year but it's the children who are likely to suffer the most as they find themselves at the centre of a tug-of-war between mum and dad.

The most common dispute is over where the children will spend Christmas Day.

Fathers who don't see their children very often throughout the year want to make up for it at Christmas when they're off work, but mothers can resent handing the children over at such a special time.

We often get calls from parents just a few days before Christmas asking for an urgent court application because their partner is refusing to co-operate. These kind of hasty, last-minute actions can create tremendous stress.

Court action should only be a last resort. The best approach is to reach an amicable agreement, preferably weeks if not months in advance. That reduces stress and if it is necessary to seek legal advice or mediation then it can be done in plenty of time so there's no sense of panic which can often filter through to the children.

Many parents agree to take turns in having the children over the Christmas period. Others have them for a few days each. It doesn't matter how you divide the time up as long as it is fair and done in the child's best interest.

It's best to keep arrangements as simple as possible and avoid handovers on Christmas Day itself when children are likely to be excited and pre-occupied with their presents. Parents should ask themselves if they want their children to remember Christmas as something magical or as a time of bitter conflict between mum and dad.

We are happy to advise parents about access rights to children, and we can act as mediators when couples find it difficult to reach an agreement.

 

Court orders child should live with grandparents

A mother has lost her appeal against a court decision that her son should be taken from her and allowed to live with his grandparents under the supervision of the local authority.

The authority started care proceedings after a number of bruises were found on the woman's elder daughter. The judge ruled that the daughter should live with her father but allowed the mother supervised contact. She was allowed to keep her son with her at that stage.

A consultant clinical psychologist told the hearing that the mother was suffering from an obsessive compulsive disorder which could lead to outbursts of anger. The disorder could benefit from cognitive behavioural therapy. The local authority could not afford to provide such specialist treatment but designated a social worker with some experience of such therapy to work with the mother.

The boy's guardian told the court that the child would be at risk if he remained with his mother. The judge ordered that he should be committed to the care of the local authority and allowed stay with his maternal grandparents. The mother was allowed supervised contact.

The mother appealed but the court upheld the judge's ruling saying his decision could not be faulted.

New council will promote family mediation

A new body has been set up to help promote the use of family mediation throughout the UK .

The Family Mediation Council was launched on 10 th October and is backed by the Ministry of Justice and the Law Commission. Its leading members include the family law group Resolution and the Law Society.

A spokesman for the council says the council will work to raise public awareness about mediation and promote professional standards among practitioners. Its mission is to “ensure that separating and divorcing couples have confidence in, and can benefit from, the true valuation of mediation”.

The establishment of the new council shows the growing importance of mediation as an alternative to litigation in resolving disputes.

A trained mediator can help bring both parties together so that they can negotiate a reasonable settlement that is fair to both sides. This can usually be done for a fraction of the cost of going through the courts. It is also far less stressful and damaging to relationships.

The government recently began a campaign to promote the use of mediation in all walks of life and for all manner of disagreements. The techniques can be applied equally well to business disputes, workplace disagreements or divorce proceedings.

Mediation will not be suitable or possible in all cases but it is certainly worth exploring before embarking on court proceedings. We are happy to offer advice on both mediation and litigation.

Asbestos illness sufferers lose right to compensation

Thousands of people who have developed pleural plaques on their lungs after being exposed to asbestos due to their employer's negligence have been told they cannot claim compensation.

Sufferers used to receive compensation but members of the insurance industry said they should no longer qualify for damages because pleural plaques don't produce any symptoms and don't impact directly on people's lives.

Lawyers argued that although the plaques themselves were considered relatively harmless they still showed that damage had been caused to the victim's lungs which meant they were at greater risk of going on to contract more serious forms of asbestos related cancer. This caused tremendous stress and anxiety.

The insurers won a test case in the High Court but the decision was overturned by the Court of Appeal. The case then went to the House of Lords which ruled in favour of the insurers.

A spokesman for the Association of Personal Injury Lawyers said he was staggered by the decision. “This ruling effectively tells them they have not been injured, yet their bodies have been invaded by asbestos and each day the clock is ticking.

“While the insurance industry will undoubtedly celebrate this financial victory, it has come at the expense of all those victims who had faith in our justice system.”

While the ruling is disappointing it should not deter anyone from seeking compensation if they have been injured or contracted an industrial illness through someone else's negligence.

Employer responsible for employee's injuries

The Court of Appeal has ruled that a company failed in its duty to protect a labourer who injured his back while moving heavy equipment.

It will now be liable to pay him damages for his injuries. The company had appealed against a court ruling that it had breached the Manual Handling Operations Regulations because it had not taken the necessary action to reduce risk to the lowest level possible.

The court heard that the labourer was one of four men asked to move machinery weighing up to 3,100kgs. There was expert evidence to suggest that the force the men had to exert exceeded health and safety guidance. The labourer who was injured had to apply a level of force that was between two and four times above guideline figures.

The judge said the company should have carried out a risk assessment and had it done so it could have identified several ways to reduce the chance of injury. For example, the men could have been given more help, specialist contractors could have been called in or a fork lift truck could have been used.

The Court of Appeal upheld the judge's ruling and said he was right to conclude that the company had failed to act appropriately to reduce the risk.

There will now be further discussions to determine the level of compensation.

October Articles

New powers of attorney come into effect

Divorce or separation affects one in three

Government says HIPs are reducing costs

Court says divorcing couple should receive equal shares

Father overturns residence order granted to his children's mother

Battling sisters continue to challenge inheritance tax

More than £1m for baby brain damaged at birth

New database could help sick workers

Road accident victim awarded £6m

New powers of attorney come into effect

Power of attorney - the system that allows people to nominate someone to make important decisions of their behalf – has been updated and expanded in the Mental Capacity Act.

The changes, effective from 1 st October, replace the old Enduring Power of Attorney with a new system known as Lasting Powers of Attorney.

Under the previous system, the old EPA allowed you to nominate someone, usually but not always a family member, who could manage your property and financial affairs should failing health or other reasons make it impossible for you to do so yourself.

The new Lasting Powers of Attorney (LPA) come in two forms and have a wider range. The property and finance LPA is similar to the old system in that it allows you to appoint attorneys to look after financial matters.

The personal welfare LPA opens up completely new options by allowing you to appoint attorneys who can make decisions about your future health care. For the first time, your attorney will have the right to refuse life-saving treatment on your behalf if he believes it is in keeping with your wishes and beliefs.

Any such decisions by your attorney would have to be made in your best interest and meet a checklist of criteria set out in the Act.

The new LPAs will need to contain a certificate filled in by an Independent Certificate provider such as a doctor or a solicitor. The certificate provider will be obliged to interview you first to make sure you understand what you are doing and that you are not being subjected to any undue pressure to appoint someone as your attorney.

Lasting powers of attorney have to be registered at the Office of the Public Guardian. This will make them more secure than under the old system and so possibly more attractive to many people.  

The new system provides people with many new and interesting options when preparing for the future. Please contact us for more details.

Divorce or separation affects one in three

More than 20 million people in the UK are affected in some way by divorce or separation, according to research carried out by the charity, the Centre for Separated Families.

One in three people surveyed said that either their parents had separated or they themselves had separated from a partner with whom they had had children. Of those affected, only 33% had received professional advice, usually from a solicitor.

More than 50% said there was a lack of attention to the needs of non-resident parents in caring for their children. Karen Woodall, Director of the Centre for Separated Families and co-author of Putting Children First, said: “Increasingly, children continue to have contact with both parents. If this is handled well, then the outcome for children improves significantly. Where there is ongoing conflict, children can be damaged.

“We want to see services that really engage and support all parents in providing what children need in order for them to realise their full potential.” 

There's no doubt that divorce and separation can be one of the most stressful experiences most people ever have to face. As well as the emotional trauma there can be a host of other issues to cope with such as reaching financial settlements and dealing with custody of the children.

No one should have to deal with these issues alone so it is important to get legal advice to ensure everything can go as smoothly as possible in what are often very trying circumstances.

There are several legal safeguards to protect everyone's interests but often the best approach is to use mediation. That way issues can be resolved amicably to the benefit of all concerned, particularly the children who can sometimes be hurt and confused if their parents become locked in conflict. A trained mediator can often help couples overcome disagreements over such things as access to the children etc.

Please contact us if you would like more information about mediation or any aspect of family law.

Government says HIPs are reducing costs

Home Information Packs proved highly controversial while they were being developed over the last few years and the arguments are still raging even though they have now come into force.

HIPs have been compulsory for anyone selling a four bedroom house since 1 st August and for three bedroom houses since 10 th September. They're designed to speed up the process by obliging the seller to provide potential buyers with key information right at the outset.

Consequently HIPs must contain specified documents such as an energy performance certificate rating the property's energy efficiency and the results of standard searches.

Critics say the system was rushed through too quickly leading to difficulties right at the outset. There were some problems with energy assessors filling out forms incorrectly which then had to be corrected. Some local authorities have also been accused of being slow or even obstructive over searches.

However, the Department for Communities and Local Government says it has ironed any difficulties and the system is already providing benefits such as reducing costs and improving transparency in the housing market. A spokesman said that more than 85 local authorities have reduced their search costs, in some cases by more than £100, and the average pack is taking only five days to compile.

The Energy Performance Certificate is one of the main features of HIPs and the Government believes they are already producing results. Communities Minister Iain Wright said families buying three and four bedroom homes “are getting clear information which shows how they can save hundreds of pounds on their fuel bills and cut carbon emissions too.” 

The Government plans to extend HIPs to the rest of housing market when more energy assessors become available.

Please contact us if you would like more information about Home Information Packs. 

Court says divorcing couple should receive equal shares

A husband has won an appeal against a court order that left his former wife with a larger share of their joint assets when they divorced.

The couple had been married for 23 years and had two grown up daughters when they decided to separate. He already had considerable assets before he married which he then continued to build up over the years.

During the marriage his wife was given £70,000 by her father and also inherited a further £12,000 which she used to reduce the mortgage on the home she owned with her husband. She was also given a 50% share in her parents' home and a bond worth more than £100,000 which was paid for by her family.

When the couple divorced, the judge ordered that their assets should be split equally except for the wife's share in her parents' home and the bond. They were left in her sole ownership. The husband then appealed against the order.

The appeal was upheld in the High Court which said the judge had been wrong to exclude the assets that had come from the wife's parents because all the assets that went into the marriage had to be available to cover the couple's needs.

The wife may have made an additional contribution because of the assets from her parents but that was balanced by the wealth the husband introduced at the start of the marriage and his hard work over the years. Both husband and wife should each receive a half share in their joint assets.

The ruling upholds the general principle that assets should be split equally when a couple divorce unless there are exceptional circumstances.

Father overturns residence order granted to his children's mother

A father has successfully appealed against a court decision granting a residence order in favour of the mother of his four children.

The mother had a history of addiction to amphetamines. During the family proceedings to determine the residency of the children the judge was presented with reports from a psychologist, the mother's psychiatrist and a social worker saying it would not be appropriate to allow the children to live with the mother.

There was also medical evidence showing that she was still taking drugs although she did not test positive at the time of the hearing. She gave evidence that she no longer used drugs.

The court ruled that the father should be granted parental responsibility and that there should be shared residency for the children. The mother was granted residency of the children during the school week.

The father appealed saying too much weight had been attached to the mother's evidence while not enough had been given to the evidence of the expert witnesses.

The Court of Appeal agreed saying that when judges decided not to follow the advice of expert witnesses then they were obliged to explain why. The judge did not do so in this case even though her decision was contrary to the opinions of the experts. She had also given too much weight to the mother's evidence.

The Appeal Court ruled that the judge's decision could not stand and the case should be heard again in front of a different judge.

Battling sisters continue to challenge inheritance tax

Two elderly sisters who have been trying to change Britain 's inheritance tax rules are making one last stand at the European Court of Human Rights.

Joyce and Sybil Burden have lived together all their lives. Their home and the small farm around it in Wiltshire is worth an estimated £875,000. The problem facing the sisters is that when one of them dies, the other will have to sell up and move out to pay the costs of crippling inheritance tax which is levied at 40% of the value of the estate apart from the first £300,000.

They decided to appeal to the European Court of Human Rights last year when gay and lesbian couples who enter into civil partnerships were given the same rights as married couples so that the surviving partner doesn't have to pay inheritance tax when the other one dies. Joyce, who is 89, and Sybil who is 81, want the same rights to be extended to family members who cohabit.

The sisters lost their case at the European Court last December when a chamber of seven judges ruled against them by the narrowest of margins of only 4 – 3. On 12 th September this year they put their case before Strasbourg 's grand chamber of 17 judges who are expected to give a final ruling within the next few months.

Sybil Burden has said that she feels looked down on as a second class citizen for being single. “Our father worked hard all his life for this house so why should it be taken away from his family?”  

According to a survey carried out for the BBC, 60% of people would like to see inheritance tax scrapped even if it meant paying more income tax. However, as it raises more than £3bn revenue each year that seems unlikely.

A welcome compromise would be to raise the threshold at which tax is paid.  It is currently £300,000. However, the threshold would need to be £430,000 in order to keep pace with house inflation over the last ten years.

Rising property prices mean homeowners with a house of little more than average price can expect to be liable for inheritance tax in the next 10 or 15 years. If you die leaving an estate worth £500,000 and you don't have a spouse or civil partner, then £80,000 could go to the taxman. Even if you are married, it is still possible that your spouse and your family could lose out on thousands of pounds.

However, it is possible to significantly reduce the burden of inheritance tax if you plan ahead. Please contact us for further details.

More than £1m for baby brain damaged at birth

A couple whose daughter was brain damaged at birth have been awarded more than a million pounds in compensation to help pay the cost of caring for her for the rest of her life.

Rhiannon Orchard, who's now four years old, needs 24-hour attention and will never be able to walk and talk or even feed herself.  

Mr and Mrs Orchard, who live in Wales , were on holiday in Devon in 2003, four weeks before the baby was due to be born. Mrs Orchard began to experience pain and so went to Torbay Hospital . She says she was assured that everything was fine even though the baby's heartbeat had dipped.

Mrs Orchard was taken for an emergency Caesarian section an hour and 45 minutes later but by then it was too late. Rhiannon had to be resuscitated for 18 minutes after birth and didn't breath properly until 25 minutes after being delivered. She suffered brain damage and doctors say she will now remain in a vegetative state.

The South Devon Healthcare NHS Foundation Trust has apologised to the family and admitted a breach of duty because Rhiannon should have been delivered earlier.

The Trust has made an interim payment to cover Rhiannon's immediate needs. The final compensation figure has yet to be worked out but it will be more than £1m.

Mr and Mrs Orchard said they spent a long time after the birth agonising over whether they had somehow been at fault themselves for what happened. It was only when they consulted their solicitor that they realised they could make a negligence claim that could provide the compensation needed to give Rhiannon the care she will need for the rest of her life.

New database could help sick workers

The Government is being urged to introduce a new system so that sick or injured workers can still receive compensation quickly even if their employers go out of business.

The Association of Personal Injury Lawyers (APIL) says a central electronic database is needed to record the insurance details of every company in the country so that even if they cease trading it will still be possible to trace their insurers years later.

APIL says this is vitally important because many industrial diseases can take several years to become apparent. By then the company where the worker contracted the illness may no longer exist so it is difficult to get compensation unless it is possible to trace their insurance company.

The insurance industry is supposed to help trace these insurers as part of a voluntary code drawn up with the Government and the Association of British Insurers, but recently it's been failing to do so.

Last year, insurers traced only 23% of the policies referred to them in 2004-2005.

It's four years since the Government insisted the success rate for traces must be improved. Insurance companies have done little about it and APIL believes it's time they were forced to set up a central database that would be quick and easy to search.

It would work in the same way as the Motor Insurance Database which makes it possible to trace the insurer of a car at the time of an accident just by putting in the registration number.

A similar central database to trace insurance companies in industrial cases would speed the system up and get help more quickly to those who desperately need it.

In spite of the difficulties it is possible for victims of industrial diseases to bring a successful claim. Please contact us for more information if you or a family member have been affected in any way.

Road accident victim awarded £6m

A man who suffered devastating injuries in a road accident has been awarded more the £6m compensation to provide him with constant care for the rest of his life.

The victim was only 18 when the accident happened. His injuries meant he lost the use of his body below his shoulders and was dependent on using a wheelchair. However, he hadn't suffered any brain damage and can hear and speak normally.

The High Court was told that he would need a team of carers to look after him for the rest of his life. Most of the £6m award is to pay for his future care but it also includes £227,000 for pain, suffering and loss of amenity and £336,000 for loss of future earnings

 

September Articles

Rising house prices spread inheritance tax liability

HIPs enter the second stage

Government defends personal searches in HIPs

New power of attorney offers wider range of protection

Cohabiting couples still vulnerable despite new rights

Husband gets divorce payment reduced

Hospital negligence led to young mother's death

Accident victim awarded £1m damages

Courts can order that children be told their father's identity

Common sense breaks out over road works

 

Rising house prices spread inheritance tax liability

Rising house prices over the last ten years have led to a fivefold increase in the number of homes liable to inheritance tax, according to research by Savills estate agency.

This is because the increase in the inheritance tax threshold, currently only £300,000, has failed to keep pace with the increases in the housing market.

The research shows that in 1996, 300,000 homes were potentially liable to inheritance tax. The number rose to 520,000 by 2001 and by last year it had jumped to 1.4million homes.

It means that hundreds of thousands of people who live in relatively modest homes may be surprised to learn that their estates will be subject to inheritance tax when they die. In some cases, their homes will have to be sold so their heirs can meet the tax liability.

In spite of this, many people have done nothing to reduce the amount that will be payable on their estates, even though there are several easy measures to explore.

Making a will and keeping it up to date is an important first step. It's also worth considering the benefits of nil rate discretionary trusts which can greatly reduce tax liability to the benefit of your family. There are also various other reliefs and exemptions that enable people to give away some of their money without it later being subjected to inheritance tax.

Please contact us if you would like more details. We are happy to provide advice on all aspects of inheritance tax planning.

 

HIPs enter the second stage

The Government has taken the next step in the introduction of Home Information Packs by extending the scheme to include three bedroom properties from 10 th September.

HIPs have had to be rolled out in stages because there aren't yet enough energy assessors available to make the system work across the whole housing market. Consequently, when HIPs first came into effect on 1 st August, they only applied to properties with four or more bedrooms.

Now ministers say they are ready to move on to the next stage as more assessors are trained and make HIPs compulsory for anyone selling a three bedroom house.

The packs must contain an index of contents, an Energy Performance Certificate, a sale statement, standard searches by local authorities or evidence that a search has been requested, evidence of title and information on leasehold or commonhold sales.

Originally it was intended that the packs should contain a Home Condition Report but that plan was abandoned when it became clear that there wouldn't be enough inspectors to provide them.

It means that the Energy Performance Certificates are now the most important new element of HIPs. The certificates provide houses with energy ratings which are similar to the ratings provided for fridges. They enable buyers to assess the energy running costs of the property.

Until the end of the year, people will be allowed to market their properties as soon as they have commissioned a pack rather than wait until it is ready.

After all the changes, HIPs have arrived more with a whimper than the expected big bang. This has led some people to speculate as to whether they will survive and whether some sellers may decide to ignore the law and not bother to provide the packs.

However, the Department for Communities and Local Government has stressed that anyone selling a house with three or more bedrooms risks a penalty notice of £200 of they don't provide a HIP. These penalties can be repeated as many times as the offence is repeated.

Please contact us if you would like more details about Home Information Packs or advice about selling a property.

Government defends personal searches in HIPs

The Government has acted quickly to counter criticism that many mortgage lenders are refusing to accept personal searches contained in Home Information Packs.

A spokesman for the Communities and Local Government said: “The vast majority of the major mortgage lenders — 9 out of the top 10 — do accept personal searches. Personal searches are not new — they have already operated successfully in the market for over a decade and currently make up around 45% of the marketplace.

“Solicitors therefore routinely accept these searches and in fact commissioned more than 650,000 personal searches on behalf of their clients in 2006 alone.

“The introduction of HIPs has in fact brought in stringent regulations for private search companies — compulsory insurance for private search companies, robust redress arrangements for buyers and sellers and financial protection in the event of a company going out of business. This significantly improves the protection for buyers and sellers compared to previous arrangements.”

The Government claims were given some support by Bernard Clarke of the Council of Mortgage Lenders who said: “I think that most lenders are already accepting [personal searches] and that as time goes on, as companies and lenders are persuaded that these private searches are just as reliable as those from local authorities, then more lenders will move to accept them.”

 

New power of attorney offers wider range of protection

People wishing to plan ahead for what should happen if ill health means they can no longer make life-affecting decisions for themselves now have a new set of options to help them.

The Mental Capacity Act, effective from 1 st October, replaces the old Enduring Power of Attorney (EPAs) with the new Lasting Power of Attorney (LPAs). They may sound very similar but there are several key differences.

EPAs allowed you nominate someone, known as your attorney, who could manage your property and financial affairs should failing health make it impossible for you to do so yourself.

The new LPAs are broader in scope and come in two forms. The property and finance LPA is similar to the old system in that it allows you appoint attorneys to look after financial matters. People with complicated investments will be able to lay down specific instructions as to how they want their financial affairs to be managed.

The personal welfare LPA opens up completely new options by allowing you to appoint attorneys who can make decisions about your future health care. You can even stipulate whether or not you should be given life-saving treatment.

Your instructions will be honoured as long as they are in writing, signed and witnessed. If the decision applies to the refusal of life-saving treatment then there must also be a statement that it stands even if your life is at risk. You can choose both LPAs or just select the one that suits you most.

Lasting powers of attorney have to be registered at the Office of the Public Guardian . This will make them more expensive than EPAs which didn't have to be registered unless a person lost capacity and the powers of attorney needed to come into effect. However, registration will make LPAs more secure and so possibly more attractive to some people.

When similar changes to powers of attorney were introduced in Scotland in 2001, the take-up rose from 5,000 a year to more than 22,000.

The wider scope of LPAs will hopefully encourage more people to plan for their future. Research by the insurance company Standard Life shows that three out of four people have made no arrangements as to what should happen if they lose the capacity to make important decisions. This could cause huge problems for them and their families.

EPAs will no longer be available after 1 st October although those already made will still be recognised and remain effective.

We are happy to offer advice on the new lasting powers of attorney. Please contact us if you would like more information.

 

Cohabiting couples still vulnerable despite new rights

Lawyers often come across cases of clear injustice because cohabiting couples have very little legal protection as the law now stands.

It could be that someone lives with a partner for 20 years yet ends up homeless and penniless when the relationship breaks up. Or they may find they lose out because their partner dies without making a will and the estate they helped to pay for and expected to inherit is instead divided up between family members they hardly know.

With more than two million cohabiting couples in England and Wales , the number of people likely to suffer injustice in some way is enormous.

The Law Commission has now put forward some recommendations that would give cohabiting couples more legal protection but stop short of the kind of rights provided by marriage.

The main benefit is that couples who split up would be entitled to financial settlements which reflect their contribution to the relationship. The partner making a claim would have to prove that they had made a “qualifying contribution” and they would have to show that this put them at a long term disadvantage or gave their former partner a financial benefit.

For example, if a woman sacrificed her career to stay at home to look after the children leaving her partner free to progress in his job then she would be at a disadvantage and should be compensated for that. Similarly, if a man helped pay for a mortgage in his partner's name then that would give her a clear advantage and that should be reflected in the financial agreement.

Courts would be able to order one of the partners to pay lump sums or sell their home to provide the other with a fair settlement. This is an improvement but as the Commission points out, it is very different to the situation of married couples who divorce because it only relates to contributions made during the relationship.

With marriage there is an automatic presumption that both partners are equal irrespective of their differing contributions. Unless there are special circumstances, assets and wealth are divided equally when a couple divorce. With co-habiting couples there is no such presumption no matter how long they live together.

Co-habiting partners won't be entitled to maintenance payments, regardless of their needs. The only time such support might be provided is to pay for childcare. This means some women in particular could still be left in a vulnerable position.

To qualify for these limited new rights a couple would have to have children together or live together for a minimum period. It's recommended that this should be between two and five years.

The proposals are now being considered by the Ministry of Justice which will decide whether or not they should be implemented.

  

Husband gets divorce payment reduced

A man has been allowed to reduce the amount he agreed to pay his former wife even though the original divorce settlement was part of a court order.

The couple had been equal shareholders in a computer software business. When they separated in 2001, the business was sold to a large conglomerate. The husband was to remain with the business on a two-year contract earning £200,000 a year. He was also entitled to receive further payment in three lump sums.

The divorce settlement ordered by the court stipulated that he should pay a share of these lump sums to his former wife. He did pay her the first two amounts but then he resigned from the business because he found his new working conditions unacceptable.

This meant he did not receive his third lump sum and so wasn't in a position to provide his former wife with her share which amounted to £200,000.

The initial court order said that the husband's liability to pay the lump sums to his wife depended on him receiving the money in the first place from his firm. If he didn't receive the money then his liability would be rateably reduced.

The wife argued that this should not apply because he had chosen to leave the firm and so had lost the money through his own choice rather than for reasons beyond his control. She took the matter back to court but the ruling went against her.

The judge ruled that the original order had been clearly worded and if the wife had wanted to include a provision for what should happen if her husband chose to resign then she should have done so at the time.

The husband had resigned despite the financial consequences to both of them, not just her.

However the order had provided that the husband's liability should be rateably reduced so that there should be overall parity between them in the division of their assets. Therefore, he was ordered to pay a reduced sum of £81,000 rather than the expected £200,000.

 

Hospital negligence led to young mother's death

The High Court has ruled that a 20 year old mother died because a hospital failed to admit her following a check-up and treat her with the medication that could have saved her life.

David Carter claimed that his wife died as a result of negligence on behalf of the Basildon Hospital , part of the Basildon & Thurrock University Hospitals NHS Foundation Trust. The court heard that his wife Elaine had given birth and then returned home the following day. Their newborn baby was in a special care unit so Mrs Carter returned to the hospital over the next few days.

Six days after giving birth, she complained during a post natal check-up that she was suffering from headaches in the mornings. Despite this she was allowed to leave the hospital.

Mrs Carter died the following day of cerebral venous sinus thrombosis. She left two sons, newly born Bradley and Jamie who was nearly three at the time.

The Trust admitted a breach of duty in not admitting Mrs Carter but argued that nothing could have been done to prevent her death and so the negligence made no difference.

However, the High Court ruled that if Mrs Carter had been admitted following the check-up and received treatment then, on the balance of probabilities, she would not have died. It was the failure to provide treatment that caused her death.

Mr Carter is seeking damages on behalf of himself and his two sons. There will now be further discussions to decide on the level of compensation.

 

Accident victim awarded £1m damages

A man who suffered a range of severe injuries in a road accident has been awarded more than a £1m in compensation.

Gerard Lane was driving a van when it was struck by a car driven by Deborah Lake . Ms Lake was killed in the collision. Mr Lane sustained a number of physical injuries together with brain damage that led to emotional, behavioural and psychological problems. He was no longer able to continue his work as a construction site project manager.

Ms Lake's representatives admitted liability.

Mr Lane 's compensation included £126,027 for lost of past income, £360,633 for future losses, £231,722 to pay for a support worker and £377,009 for rehabilitation.

 

Courts can order that children be told their father's identity

A court order that two children should be told the identity of their natural father has been upheld on appeal.

The man made an application for a declaration of parentage after a DNA test showed that he was the father of eight-year-old twins. However, the twins regarded a man who had been living with their mother as their father.

The natural father obtained a court order saying the children should be told about him. The mother appealed saying the matter did not come within the jurisdiction of the court and that a decision about whether or not to inform the children should be made by the parents.

However, the Court of Appeal ruled that the judge had been justified in making the order and so the children should be informed.

 

Common sense breaks out over road works

To the relief no doubt of commuters everywhere, councils are to receive new powers to cut the disruption caused by road works.

Regulations introduced under the Traffic Management Act 2004 will enable local authorities to minimise the impact on motorists, pedestrians, businesses and residents. From early next year, councils will be able to impose conditions and co-ordinate all road works. Transport Minister Rosie Winterton said: "There's nothing more annoying than a road being dug up time after time in the same place, or seeing work taking place at the most inconvenient times for road users. Of course, companies like gas or water suppliers need to carry out repairs and improvements but it should be possible to co-ordinate their work better, and do it when the road isn't so busy.

"These regulations enable local authorities to minimise the level of disruption to the public - for example, councils will be able to co-ordinate work by two separate companies and prevent work being carried out during the busy rush hour.”

 

August 2007

Government says there are no loopholes in HIPs

Sting stung by tribunal ruling

Divorcee may lose her home to pay former husband's debts

Unresolved legal problems can affect health, say researchers

Unmarried fathers may be named on their child's birth certificate

Rail worker awarded damages for knee injury

Money laundering regulations could affect some travellers

Government says there are no loopholes in HIPs

Home Information Packs have proved controversial because they have been watered down and weakened over the last 12 months but like them or not, they have now come into force.

Anyone putting a four bedroom house on the market after 1 st August has to provide a HIP for potential buyers. However, there have been several stories suggesting there are various loopholes to get round the system.

To counter this, the Department for Communities and Local Government (CLG) has issued statements discrediting some of the more common suggestions. For example, one idea is that a seller could avoid the need for a HIP by saying his property was on the market before 1 st August.

However, the CLG points out that it will then be up to the seller or his agent to provide evidence. Otherwise the seller could face a penalty notice of £200 which could be repeated if the enforcement authorities felt it was appropriate.

Another suggested loophole is to risk being fined and only order a HIP once caught. The CLG says the £200 penalty is not a one-off and can be repeated as many times as the offence is repeated. Estate agents who tried this could face a banning order.

Some people have considered ordering a pack and then pay the cancellation fee should they happen to sell quickly. However, to comply with the law, the seller has to commission a HIP and pay for it, or make a commitment to pay for it. Many providers say they can produce HIPs within seven days and it's highly unlikely that anyone would be able to sell in such a short time.

Please contact us if you would like more information about Home Information Packs.

Sting stung by tribunal ruling

Pop star Sting and his wife Trudie Styler have been ordered to pay nearly £25,000 to their former chef who was dismissed after becoming pregnant.

Jane Martin, who's 41, worked for the couple for eight years during which time she was called upon to cook for celebrities such as Madonna and Sir Elton John. She brought a claim of sexual discrimination because she felt she had been unfairly dismissed after returning from maternity leave in April last year.

She told a tribunal that she feared she would have a miscarriage because she was suffering stress after losing her job.

Miss Martin was awarded £10,000 for her injured feelings and £16,000 for loss of earnings. The overall figure was reduced to £24,944 to take into account the redundancy payment she had already received.

The tribunal chairman, Mr James Simpson, said he was surprised by the level of the claim and would have expected it to have been much higher.

After the hearing, a spokesman for Sting and Ms Tyler said: "It remains Trudie's position that she, as a woman and a mother, has never in her life sexually discriminated against anyone and never would do so.”

Ms Styler is appealing against the ruling.

Divorcee may lose her home to pay former husband's debts

A woman could be forced to sell her home to pay the debts of her former husband who is now bankrupt – even though the couple divorced 20 years ago.

Vivienne Avis and her husband Edmund separated in 1985. Under the terms of their divorce settlement she was awarded two thirds of the value of the matrimonial home and Mr Avis was entitled to the other third. However, the court order said the house did not need to be sold unless she remarried or started co-habiting with another man.

Mr Avis became bankrupt in 1989. In 2003, a new trustee in the bankruptcy applied for the matrimonial home to be sold to pay Mr Avis's debts which were still outstanding.

Mrs Avis argued in the High Court that there could be no order for sale because of the terms of the divorce settlement. However, the court ruled in favour of the trustee and now that ruling has been upheld by the Court of Appeal. Lord Justice John Chadwick said: “The interests of the bankrupt's creditors outweigh all other considerations unless the circumstances of the case are exceptional.”

There will now be another hearing to decide whether the circumstances of the case are indeed exceptional and so enable Mrs Avis's interests to over-ride those of her husband's creditors.

Unresolved legal problems can affect health, say researchers

People need more information about the law so they know how to get help when faced with the increasing legal complexity of modern life, according to research by a government task force.

The researchers found that one million legal problems involving ordinary people go unresolved every year. One third of the population try to deal with these cases but many people take no action at all. It was also found that the emergence of legal problems could lead to difficulties in other areas of life.

For example, one sixth of people suddenly faced with a legal problem then went on to suffer ill-health or lose their jobs.

The research was carried out by the Public Legal Education and Support (PLEAS) Task Force which is part of the Ministry of Justice. Ministry economists estimated that over a three to four year period, unresolved legal problems cost individuals and the taxpayer £13billion.

The Task Force report, Developing Capable Citizens: the role of Public Legal Education, says that the public need to be sufficiently knowledgeable and confident to deal with problems and make the most of the protection offered by the law. It is now trying to increase the level of public legal education.

When faced with legal problems it is essential to get professional legal advice as soon as possible. If the right steps are taken at the outset they can prevent more serious difficulties emerging later on.

As always, early attention to legal problems has the potential to save thousands.

Unmarried fathers may be named on their child's birth certificate

Unmarried fathers may soon have to register their names on their children's birth certificates.

At the moment, only the mother's name has to be registered and it is only the mother who faces a penalty for failing to comply. Now the Government is proposing that unmarried fathers should also face penalties if they refuse to be named on the birth certificate.

Ministers say they want to ensure that when a relationship breaks down, the father's responsibility to his children remains as strong as ever.

It's thought that identifying fathers in this way will make it more difficult for the few who try to avoid their responsibilities. It will also make it easier to find them and claim the child maintenance they owe.

The proposals have been put forward in a green paper, Joint Birth Registration: promoting parental responsibility. The paper also contains a series of measures to protect vulnerable mothers and children, such as in cases of rape or abuse.

Rail worker awarded damages for knee injury

A rail worker has been awarded £8,000 damages after being injured when he tripped over a brake handle.

The incident happened at a depot run by the Construction firm Jarvis. Eric Barker had to take several weeks off work after falling heavily and injuring his knee. The incident happened because the brake handle was jutting out into a walkway in breach of workplace regulations.

Thousands of people are injured in the workplace through no fault of their own and many of them go on to make successful claims for compensation.

Please contact Anne Smith if you would like advice on making a personal injury claim.

Money laundering regulations could affect some travellers

New European Union regulations to combat money laundering could affect people who need to carry large sums of money when they travel abroad.

Anyone entering the UK from a non EU country or travelling to a non EU country will need to make a declaration to HM Revenue & Customs if they are carrying 10,000 euros or more or the equivalent in other currencies. The regulation applies not only to cash but also bankers' drafts and cheques of any kind including travellers' cheques .

Travellers face fines of up to £5,000 if they fail to comply or provide incorrect information.

The appropriate forms will be available at ports and airports where the declarations have to be made. Money may be seized under the Proceeds of Crime Act 2002 if an HMRC officer has reasonable grounds to suspect that it has been obtained illegally. However, properly declared cash will not be taken if officers have no reason to doubt its legitimacy.

The regulations don't affect people travelling between the UK and other EU countries.

July 2007

Stories included

Big divorce settlements prompt surge in pre-nups

Subsidised HIPs for first 5,000 applicants

Single mother loses maintenance battle with CSA

Husband gets divorce settlement reduced

Family courts strike balance between openness and privacy

Father granted residence order for his son

Court ruling helps victims of hit and run drivers

 

Big divorce settlements prompt surge in pre-nups

High profile divorce cases have led to a large increase in the number of couples drawing up pre-nuptial agreements before marrying, according to new research.

A survey carried out by the accountancy firm Grant Thornton found that over the last 12 months, two-thirds of family lawyers throughout the country helped more couples than ever before to decide how their assets should be divided should their relationship break down.

There have been several important cases in the courts recently which have helped establish the principle that assets should be divided equally between a divorcing couple unless there compelling reasons against doing so.

One such reason might be that one partner had made a “special contribution” to the couple's joint wealth due to some extraordinary talent. This was the case with businessman John Charman. He and his wife Beverley had no significant assets when they married at the age of 23 and 22.

When their marriage broke up 28 years later they had amassed a joint fortune of £131m. The courts allowed to Mr Charman keep 63.5% of this wealth on the basis that it had been built up largely as a result of his extraordinary efforts in his work in the insurance industry.

In spite of being granted the larger share of the couple's wealth he still contested the £48m award made to his former wife describing it as grotesque. The Appeal Court ruled against him but in doing so it called for a review of the divorce laws.

Sir Mark Potter, who presided over the case with lords justices Thorpe and Wilson, added a postscript to the judgment calling for reform. He urged the Law Commission to examine the issue and consider whether pre-nuptial agreements should be included in new legislation.

At the moment, pre-nuptial agreements are not legally binding but the courts will generally take them into account if they are considered to be fair and properly drawn up. In assessing whether the pre-nuptial agreement should stand, judges will consider such matters as whether both sides fully disclosed all their assets and whether both had access to independent legal advice.

Couples considering a pre-nup should consult a solicitor to ensure their agreement is properly drawn up and so acceptable to a court if it is ever needed in future.

Subsidised HIPs for first 5,000 applicants

The Government has announced that it will subsidise the cost of Home Information Packs (HIPs) for the first 5,000 homeowners to apply before 1 st August.

It has agreed to pay £100 plus VAT towards the cost of an Energy Performance Certificate, the main element of the new packs.

HIPs have had a stormy ride over the last few months. They were due to be introduced in June but the date was postponed following a legal challenge by surveyors who argued there wouldn't be enough energy assessors to carry out inspections and award energy performance certificates.

The Government compromised and agreed to introduce the new system in phases starting on 1 st August when they will be needed for anyone selling a house with four or more bedrooms.

They will be phased in for smaller properties later although no timetable has been announced.

Ministers hope the subsidised Energy Performance Certificates will help get the new system off to a good start, although they may still have a long way to go according to research carried out by ICM.

Only 36% of people questioned had actually heard of Home Information Packs and of those, only one in three knew that they should contain information about a house for sale such as EPCs and the results of local searches.

Trustworthiness was considered the most important quality in a HIP provider. The majority of people said they would be most likely to trust a solicitor to prepare the pack and interpret the information it contained.

Single mother loses maintenance battle with CSA

A single mother has lost her legal battle with the Child Support Agency over child maintenance payments.

Denise Rowley, who is 50 and has three children, claimed that the “incompetence and negligence” of the CSA in enforcing her former husband's maintenance caused her to lose her home.

She asked the Court of Appeal to rule on whether the CSA had a duty of care to parents and children for whom it collects maintenance. The action was against the Department of Work and Pensions which has overall responsibility for the CSA.

However, the three Appeal Court judges ruled against her saying it wasn't “fair, just and reasonable” to impose a duty of care on the Work and Pensions Secretary to avoid economic loss.

Ms Rowley was backed by Resolution, the family lawyers association, which said it was disappointed with the ruling. Kim Fellowes, chair of Resolution's CSA committee, said: “Clearly this judgment is a major blow to those families who have fallen foul of the inadequacies of the CSA.

“As the recently published Child Maintenance Bill passes through Parliament, Resolution is calling on MPs to ensure that the new bill sets out clearly the rights to redress for those failed to date and for any errors in the future.

“The Government aims to create a new child maintenance agency divorced from the mistakes of the past. For this to work – the legacy of the past two schemes must be dealt with. Otherwise the new system will be crippled even before it has begun.”

We shall keep clients up do date with developments.

Husband gets divorce settlement reduced

A husband has won an Appeal Court ruling reducing the amount he has to pay in his divorce settlement with his former wife.

The couple had been married for 10 years and most of their income came from the husband's company which he had been running successfully before the marriage. The district judge ordered that the husband should keep the business but would have to give his wife his shares in another company which owned the premises in which his firm operated.

He would also have to pay her £2,800 reducing to £2,300 after the sale of the matrimonial home. The wife would also receive a property the couple owned in Spain .

The Court of Appeal ruled that the district judge's order should be set aside because it contained several shortcomings. The original order started from the principle that there should be an equal division of assets. The Appeal judges said this was the wrong starting point because the couple's main assets, their home and their business, came from the husband and the marriage had only lasted 10 years.

They decided that a clean break was needed in this case and so a new order was made providing payments of £18,000 a year until £180,000 had been paid. At that point the order would be discharged.

Family courts strike balance between openness and privacy

The Government has decided against giving the media an automatic right to attend family courts but says it is pressing ahead to create a culture of openness while at the same time protecting the best interests of children.

A number of measures designed to improve transparency in family courts were put out for public consultation last year. Now ministers have put forward a package designed to strike a balance between openness and privacy, especially for children.

The measures include clarifying the rules on who can attend family courts and the reporting restrictions that should apply. If there is a clear public interest, a transcript of the proceedings or a summary of the decision will be made available in a way that doesn't identify the people involved. This could apply in cases such as where a child is permanently removed from one or both parents.

More information about how the court reached its decision will be made available to the people involved in the proceedings. Children involved in such proceedings will be able to access this information when they become adults.

There will be more information available online about how the family courts work, how decisions are made and what to expect if