Will disputes - a busy time for the RSPCA

Tuesday 25th January 2011

Recently two cases involving the RSPCA have underlined some of the different issues that can arise in disputes about estates.

RSPCA v Gill [2010]
A challenge to a will on the basis of the testator's lack of knowledge and approval.

A farming couple made mirror wills leaving everything to each other or if the other predeceased them, leaving the residue of their net estate to the RSPCA. The wills expressly made no provision for their only daughter, who it was said had been well provided for over a long period of time. 

The husband died first. On the subsequent death of the wife, her will was challenged by the daughter on two grounds: that the wife had not known or approved the contents of her will, or alternatively that the wife had been unduly influenced by her husband. The judge rejected the first ground but found for the daughter on the second so the will was revoked, the mother treated as having died intestate and the daughter inheriting the farm.

The RSPCA unsuccessfully appealed. Interestingly, however, the Court of Appeal reversed the earlier finding of undue influence but considered that the wife had not known or approved the terms of her will. The wife suffered from a very severe anxiety disorder and found it extremely difficult to leave the farm or meet strangers. When she and her husband visited their solicitor's office to sign their wills the Court considered that she therefore was too distressed to have understood her will as it was read aloud to her.

Although this case was ultimately one where the Court concluded that the testator did not know or approve the contents of her will, it should be remembered that it is often very difficult to successfully challenge a will on that basis.  This case is a useful reminder that medical evidence of a person's vulnerability - even where it is not directed as the ground of mental capacity - can be crucial.


RSPCA v Sharp [2010]
A disagreement over the interpretation of a will.

The testator's will left a nil rate band legacy to his brother and his lifelong friends (Mr and Mrs Sharp), to be shared between them in specified proportions. The will also left all of the testator's property to Mr and Mrs Sharp (who were also the executors), with a direction that the inheritance tax payable on that gift, if any, was to be paid from the residuary estate.

At the time he died the nil rate band was £300,000. Inheritance tax would therefore be payable on the value of the estate which exceeded that sum, subject to certain exceptions - including gifts to charity.

The executors considered that the will left £300,000 to be divided between them and the deceased's brother free of inheritance tax. This would cause inheritance tax to be payable on the value of the property also left to Mr and Mrs Sharp, but this was to be deducted from the value of the residuary estate.

The recipient of the residuary estate, the RSPCA, considered that this construction of the will wrongly reduced its entitlement. It argued that the monetary legacy was to constitute just the amount by which the value of the property left to Mr and Mrs Sharp fell short of £300,000 - so that the combined legacy and gift of the property was below the IHT threshold with the balance falling into reside going free of IHT to the RSPCA. This would more than halve the monetary legacy, but increase the residuary estate by the £112,667 inheritance tax which was otherwise payable on the property.

The RSPCA's claim was initially rejected. On appeal, however, the Court of Appeal found for the RSPCA. The value of the property was to be taken into account in the calculation of the monetary legacy. No inheritance tax would therefore be payable on any part of the estate, which enlarged the residuary estate to the benefit of the RSPCA.

The need for wills to be clear and unambiguous is underlined once again. Will drafters should also note that in its interpretation of a will the court will consider the meaning of the specific words used in favour of evidence of what the testator was said to have intended when the will was made.

Ashfords' Trusts and Estates Team can assist on any matters regarding a will or trust. For taxation and estate planning advice please contact Michael Alden on 01392 334041 or Rachael Crocker on 01884 203088. In the unfortunate event of a dispute in relation to a deceased person's estate or a trust, please contact Robert Horsey on 01884 203086.