Your legal questions answered by Fahmida Ismail.
As published in the legal pages of the Birmingham Post.
Q. My husband and I were partners in a business that failed. When we divorced there was an outstanding income tax bill, and we were told we’d each have to pay an equal amount. I’ve been left some money in a will; does this mean I will have to meet the debt in full, or just pay my half?
A. The Inland Revenue will divide the debt according to the partnership tax return you submitted: partners can opt to split profits and losses in unequal percentages. If your accountants told you that you would each have to pay an equal amount it suggests you decided to split your losses 50/50, in which case you won’t now be called on to pay the debt in full. However unless you have reached a financial settlement with your ex-husband it’s possible he will have a claim on your legacy.
For similar advice on divorce or any other family matter, contact the family law team on 0121 746 3360 or fill in our online enquiry form.
Q. I have been married for 30 years, but we were separated for the last seven. My husband died eight weeks ago and my brother-in-law has taken money out of his accounts. My children are looking to me to do something. But what can I do?
A. Assuming you simply lived apart and didn’t apply for a judicial separation you are likely to be entitled to the bulk of your husband’s estate if he didn’t make a will leaving it to someone else. And even if he did you may well have a claim on the estate. I suggest you see a solicitor. If there’s no executor (if your husband didn’t make a will), and he had more than a few thousand pounds to leave, probate will be required to take over his affairs. As administrator of the estate you could sue your brother-in-law for the return of any missing money.
For advice on wills and probate, contact our wills and probate department on 0121 746 3360 or fill in our online enquiry form.
Q. I told my employers that I intended to finish work. Then, four weeks before I was due to leave, I had an accident when one of the castors came off my office chair and I had to be taken to hospital. I returned to work a fortnight later but was told to finish with immediate effect. Although they are giving me notice pay I feel I may have a case for compensation but I don’t know how to pursue it.
A. If you had already handed in your notice you won’t be able to claim compensation for your dismissal as long as they are paying notice pay. However you should ask a solicitor specialising in personal injury cases to investigate whether you have a claim against the firm for negligence. This is likely to centre on whether your employers knew, or ought to have known, that the castor was loose.
For more information on personal injury or injuries at work, contact our personal injury department today.
Q. We're planning to build a small porch extension up to the boundary. Now our neighbour says the boundary is in the wrong place and has taken part of the fence down. But it doesn't look right to me and there is no similar dog-legged boundary on the estate.
A. I don’t think your neighbour wants you to build the extension! So the boundary dispute may be a secondary issue. You should ask a solicitor to look at the plan of your property filed at the Land Registry. If the plan shows the boundary as a straight line, then this is conclusive and a letter from your solicitor asking the neighbour to restore the fence should be an end of the matter. A mediation service where you can find out what the real problem is may be the answer.
Q. My mother gave me her house in 2005. My current concern is that, if she needs to go into a care home, I will have to sell the property to pay for the care home fees. The house is now worth about £230,000. If I was to sell it, would I be liable for capital gains tax?
A. Since you have owned the property for five years it’s most unlikely that the local authority would be able to suggest that it should be available for payment of care home fees. However when you come to sell it, you will be liable for capital gains tax on any appreciation in value since 2005 if you already have a home of your own. So while your mother may have escaped liability for paying care home fees, the downside is that you may have to pay capital gains tax instead.
For more information on trusts and tax planning, contact us today.
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