Will taxman be our guest?
Q. My partner and I own a small guest house in joint names. We both have two children from our first marriages. We made wills some time ago leaving everything to our trustees with the idea that everything will get shared between the four children when we have both gone. What is our position as regards inheritance tax?
A. I presume from your reference to “trustees” that you have set up discretionary will trusts, which is the best thing to have done from an inheritance tax point of view. Married couples can now transfer their inheritance tax allowances (currently £312,000 per person) to each other; but unmarried couples still need to use trusts to make use of both allowances, thereby maximising the inheritance of the next generation. If your combined estates are likely to exceed £624,000 it will be important to use Business Property Relief by ensuring that, on the first death, the first to die’s share of the guest house business passes into discretionary trust. This will ensure that if the survivor sells the business or stops operating it after the first death, the first to die’s share of the value of the business sale proceeds or the former business assets will be sheltered from inheritance tax on the second death.

Net result
Q. The tenants in the house next door have put a window in the side of their bungalow which forms the boundary with our property, with the result that they can see right into our kitchen and bathroom. The previous tenant signed an agreement preventing him from doing this, but we have contacted the landlord and he doesn’t want to know.
A. There’s probably a clause in your neighbours’ lease requiring them to obtain the landlord’s consent before carrying out any building work. But you can’t make the landlord enforce the terms of the lease. Unless the installation of the window contravenes planning laws or building regulations or a covenant in the title deeds to the house, you may have to invest in some net curtains. You have no automatic right to privacy.

Abandoned caravan
Q. A friend stores caravans in a field for an annual fee. One van has been there since he bought the field three years ago, and no-one knows who the owner is. I would like to buy it, but does my friend have the right to sell it to claim his fees?
A. The fact that your friend uses the sale proceeds to clear the arrears owed in respect of site fees (unless the sale is effected under a court order) would not necessarily prevent the van owner returning and reclaiming his caravan from you after you’d “bought” it. If the price you are paying for the van is fairly low you can probably go ahead without worrying too much about the owner of the van reappearing although. You could perhaps cover yourself by asking your solicitors to draw up a deed whereby your friend agrees to reimburse any loss you suffer as a result of having to hand the caravan back to the true owner.

Landed with debt
Q. My wife and I bought some land for £24,000 in 1994. At the time our son lent us £3,200 towards the purchase and a charge was registered at the Land Registry so he would get his money back. This is still in place and is preventing us selling the land, even though we repaid the loan years ago. We no longer see or hear from our son, so what can be done in the circumstances?
A. You need to provide evidence to the Land Registry that you have discharged the debt secured against the land. If you cannot obtain a duly signed discharge document from your son you will have to apply to the Land Registry for cancellation of the charge on the basis of a statutory declaration that no money is owing under the charge. The Land Registry will notify your son of the proposed cancellation and give him the opportunity to argue why the charge should remain. As long as you are able to produce evidence of repayment – for example a bank statement – the Registry will cancel the charge and the sale can go through.

Estate management
Q. My mother and my aunt are about to obtain letters of administration for the estate of my cousin, who died recently. However my uncle had an enduring power of attorney to deal with her affairs. Will my mother succeed if she applies for an injunction to prevent him taking any part in the administration?
A. Since your mother and aunt are applying for letters of administration (as opposed to a grant of probate) I take it the niece didn’t leave a will. In that case the closest family member to the deceased will be given authority to administer the estate. Your uncle no longer has authority to deal with his niece’s affairs, since power of attorney ceases on death. Where two people have an equal claim it’s usually just a question of who gets in first. If the three can’t get on it might be better for them to appoint a solicitor to deal with the estate.