In A Hamilton v C Hamilton and D Smith [2016] EWHC 1132 (13/05/2016) the High Court found that a foundation had been validly set up offshore and recommended that the interaction between the Liechtenstein Disclosure Facility (LDF) and inheritance tax (IHT) be reviewed given that the LDF had enabled a substantial amount to escape IHT.
D Hamilton had died a wealthy man. Prior to his death he had set up a foundation in Liechtenstein. On his death D’s interests in the foundation had passed to both his son and his daughter in dramatically unequal parts. This led to litigation by his son A Hamilton who was the recipient of the smaller share.
A. contended that the foundation had not been validly established as the assets transferred to it had remained completely within D’s control and its sole purpose had been tax evasion. The...
