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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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My wife held a 50 % share in my company with me her husband

Customer Question

My wife held a 50 % share in my company with me her husband owning the other 50%
The wifes share was held in trust for another party who contributed virtually nothing to the company.The company was struck off in the UK
in the year 2000.
The company was then reformed overseas with myself being the sole owner.
My wife died in October 2012
We have had no communication with the other party for 15 years
Can you please advise the legal position and has the other party still got a claim
Submitted: 4 years ago.
Category: Law
Expert:  Max Lowry replied 4 years ago.

Max Lowry :

Hi, welcome to the site. My name is Max and I will help you with your question.

Max Lowry :

If you have started up a new company abroad, then this is completely different to the company in the UK, and there should be nothing stopping you from doing this.

Max Lowry :

Did you have any specific concerns about this or queries?

JACUSTOMER-z900ol6p- : Hi
JACUSTOMER-z900ol6p- : dear sir
Max Lowry :


JACUSTOMER-z900ol6p- : does the party for whom my wife held the trust share still have a legal claim on her estate
Max Lowry :

The person who benefitted from the trust share can only claim against the share. Holding a share on trust does not give them right to look to your estate or your wife's estate.

JACUSTOMER-z900ol6p- : It has beem
JACUSTOMER-z900ol6p- : It has been 15 years since we last heard from him
Max Lowry :

And what is he now saying?

JACUSTOMER-z900ol6p- : Still nothing
JACUSTOMER-z900ol6p- : Does he have any claim against the new company formed overseas and owned entirely by me or does his claim only extend to the uk compsny
Max Lowry :

Does he say he has a claim against the overseas company and if so, on what basis?

JACUSTOMER-z900ol6p- : I have had no communication with him for 15 years.Is there a statute of limitations for breach of trust in the uk
Max Lowry :

Yes, there is. it is 6 years from the date of the breach of trust.

JACUSTOMER-z900ol6p- : as we stopped paying him his share in 1996 then can I assume he has no recourse to any action.
Max Lowry :

I expect you're probably right yes, although you'll aprecicate that I don't know nearly enough about the detail to say much more than that.

Max Lowry :

Generally, though, after 6 years, so long as you don't try and conceal things or commit fraud, that's the limitation period. After that, it's over, no action can be started.

JACUSTOMER-z900ol6p- : Thanks
Max Lowry :

You're welcome.

Max Lowry :

Is there anything else you would like me to answer for you about this?

JACUSTOMER-z900ol6p- : I have to submit my wifes inheritance tax return and am not sure how to proceed
JACUSTOMER-z900ol6p- : Do I tell the uk tax authorities about this.He has made no contribution to the profits of the company and had no involvement for 20 years
Max Lowry :

Tell them about what? What is the question on the tax form?

JACUSTOMER-z900ol6p- : If she held anything in trust .The amount is quite significant but why should he have any rights when he contributed virtually nothing
Max Lowry :

Fairness is not the issue. The issue is whether it was held in trust - i.e. it doesn't belong directly to her and thus would not be subject to tax. You have to be honest and open with the authorities. At the end of the day it doesn't mean he can get anything, he is prevented from bringing the claim if it's statute barred.

JACUSTOMER-z900ol6p- : Ok thanks for your advice.I will see a UK solicitor
Max Lowry :

Thank you. Would you please rate the answer as highly as you can for me.

Max Lowry :

If you need to ask anything else about this later just let me know.

Max Lowry :

Thank you.