Book review

Any book about wills and estates should now be covering the reduced rate of inheritance tax (IHT) if 10 per cent of the net estate is left to charity. In the second edition of A Modern Approach to Wills, Administration and Estate Planning, authors Christopher Whitehouse and Professor Lesley King have devoted a whole chapter to the matter.

Given the relative novelty of this topic, the chapter includes three precedent clauses for gifts to charity and detailed example calculations, carefully covering the basics, such as the components of an estate and how the relief operates, and elections, which can be made in relation to the relief and the practical implications for clients. It is an assured and useful guide.

Two other new chapters appear in the estate administration section. There is a detailed review of the IHT forms needed to apply for probate, with illustrative examples and tax calculations. The authors also highlight particular sections of HMRC guidance and consider issues such as the instalment option, the treatment of various joint assets and valuations.

The chapter on will trusts explains (among other subjects) why it is necessary to know when a will trust has been constituted as well as how to do so properly, and a new chapter focusing on the will draftsman weaves in a significant number of precedents, including a full discretionary trust will with administrative provisions and accompanying letter of wishes. The precedents use plain language and being able to download them from the accompanying CD is a modern approach to drafting indeed.

The substantive sections finish with appendices providing the reader with fingertip access to interest rates on ?funds in court and a table of nil rate bands. There are references to HMRC guidance and case law throughout the text, with supportive footnotes and frequent cross-references between chapters and to the precedents. The index is detailed and straightforward.

In the background law section, the authors highlight issues to discuss with clients and pitfalls to avoid, as well as more general matters for attention. There are clear explanations of topics, such as capacity of a testator, dispositive powers of trustees and the burden of tax. Essential tax law makes helpful reading, offering numerous examples, both descriptive and calculation-based, to illustrate points.

However, I feel this otherwise excellent book is missing something ?on intestacy. It assumes the will is ?drafted and a grant of probate is ?applied for, but as estate administration can often include intestacy, or partial intestacy, the book would benefit from broadening its coverage. Also, it assumes that the estate ?is solvent, so maybe a section on insolvent estates could be added to a subsequent edition.

Overall, this book is a veritable mine of useful information and would be a significant addition to any private client library, though. It is accessible for trainees while maintaining a depth of knowledge that makes it invaluable to more senior practitioners. It is well paced and easy to navigate as well as being clear and concise, yet comprehensive.

Tess Goldman is an associate at Harbottle & Lewis

ISBN: 978 1 84661 519 1
Publisher: Jordans
RRP: £90
Published: January 2013