Re: Ratcliffe clause?

Trusts Discussion
1

Hi,

I am dealing with a taxable estate where the residuary estate is divided unequally between charities and individuals. In the Will, this is the clause regarding the calculation of shares and IHT:

“In calculating the shares of my Trust Fund my Trustees shall not take into account any inheritance tax payable and attributable to my residuary estate and then after the division of the shares subject to inheritance tax shall have such tax attributed to them”

I presume re: Ratcliffe?

Has anyone seen this clause (maybe with additional words)? I’m wondering if some words were left out?

Thank you for any comments/advice.

Michelle

2

Sounds like Ratcliffe to me too, i.e. division before IHT. Wonder if there should be an extra “those shares” before “subject”.

I’ve seen precedent Ratcliffe clauses that talk about dividing the estate “without regard” to the payment of IHT, which in my view is just as bad.

3

Thanks Eddie.