IHTM12241 | Succession: Scottish Prior and Legal rights: Example of legal rights calculations: The facts

George Black, a farmer, died on 18 August 2001, aged 64, domiciled in Scotland. He was survived by:

• Molly his widow

• Joan Stepdaughter over 18

• Mary natural daughter over 18

• John natural son over 18

• Jack Grandson aged 8} Child of legally adopted son James who died before George

• Jill Granddaughter aged 6} Child of legally adopted son James who died before George

Henry, a natural (but illegitimate) son over 18, also predeceased George. He left no children (or grandchildren).

George had made a cash gift of £150,000 to John in 1995. George’s estate consisted of:

• Moveable estate Value £2,400,000

• Heritable estate Value £3,000.000

• Total value £5,400,000

He left a Will. Subject to the payment of a cash legacy of £100,000 (free of tax) to Joan, he directed that the entire residue of his estate was to be divided equally between Molly and his younger brother, Robert, who also survived him.

At his death, George had a life interest (interest in possession) in his late father’s trust. The trust fund was valued at £2,500,000. Under the trust provisions, children Mary and John were each entitled absolutely to a one half share of the trust capital on George’s death.

He had also been entitled, up until his death, to a life interest in a fund ‘the Husband’s Fund’, valued at £1,000,000, settled by him under an ante-nuptial marriage contract drawn up between him and Molly before their marriage. Under the terms of this settlement, Molly became entitled to a life interest in ‘the Husband’s Fund’ with effect from George’s death.