Widow seeks to avoid £300,000 inheritance tax bill due on a gift made by her late husband because the gift was made before they were married
The widow of one of the heirs to the JD Sports fortune is applying to the Court to rescind the gift of half of a £1.8 million family home after it left her facing an inheritance tax bill of £300,000.
Tom Makin, whose father David helped found JD Sports, gave half of the property to Kirsty Makin in 2017. They got married and shortly afterward, Tom was diagnosed with bone cancer and he passed away in 2019. If he had left her half of the property in his Will, there would have been no tax to pay as spouses are exempt from inheritance tax, however because they were not married at the date of the gift, the exemption does not apply.
The executors of Tom’s estate are applying to the High Court for the gift to be rescinded and declared a mistake as they claim it was made in the belief that it would not create an inheritance tax liability on his death. Kirsty Makin was quoted in the Times as saying, “We’d just bought our forever home; we’d had two beautiful children. It should have been the start of Tom’s life, not the end of it”.
Making gifts of cash, property or valuables either during a person’s lifetime or in their Will can have unexpected implications. If you are considering making such gifts, Dawson Hart would be happy to advise you to ensure that you can make a fully informed decision
For more information please contact Elizabeth Mitchell or call 01825 762281