Press comment on Ilott case | Old Mutual Wealth
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Press comment on Ilott case

15/03/2017

If you’re covering the Supreme Court ruling on the Ilott case, please see the following comment from Rachael Griffin, tax and financial planning expert at Old Mutual Wealth. 

In 2007 estranged daughter, Heather Ilott challenged her mother Melita Jackson’s will after discovering she had left it entirely to charities. The district court awarded the daughter a "reasonable provision” of £50,000 from the estate. In July 2015, the Court of Appeal granted Ilott an award of over £143,000 of her mother’s estate. The charities then challenged the decision and took the case to the Supreme Court who heard the case on December 12. This morning the Supreme Court decided to overturn the Court of Appeal’s decision, and granted the daughter the £50,000 decided from the original case. 

Rachael Griffin

Rachael Griffin, tax and financial planning expert at Old Mutual Wealth comments:

“This case was the first of its kind to be brought to the highest level of the UK’s justice system. The decision by the court leaves things slightly confused. The purpose of the Inheritance (Provision for Family and Dependants) Act 1975 was to make reasonable financial provisions. While reducing the amount, still granting Heather Ilott part of her mother’s estate keeps the door open for other cases of a similar kind to progress.

“To avoid the scenario altogether people should consider lifetime planning using trusts, which have both tax benefits and offer the opportunity to gain greater control over the distribution of wealth on death. A scenario such as the Ilott case is also unlikely to occur as the 1975 Act does not apply to lifetime planning. Plus, distribution of trust assets against the terms of a trust would be a breach and could be legally challenged. A bonus is trusts are confidential, so unlike wills they do not currently become public knowledge.

“The distribution of wealth upon death has become more complicated in recent years. It is important to carefully plan for how you wish your money to be divided upon your death and seeking financial advice is the best place to start.”

 

For more information contact

Kathleen GallagherOld Mutual Wealth023 8072 629307990 004932kathleen.gallagher@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

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This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.