Sarah O'Sullivan, Author at Tees Law

How to use the donation-partage (or gift with distribution)

Posted on 12 March 201723 March 2025 by Sarah O'Sullivan

The donation-partage (or gift with distribution) is a legal instrument under French law that allows individuals to distribute their assets among their children during their lifetime. It serves as both a lifetime gift and an anticipatory succession plan. This concept is especially relevant in France, where forced heirship rules apply, ensuring children (and in the absence of children, the spouse) receive a reserved portion of the estate.

In contrast to the UK, which lacks forced heir ship laws, the donation-partage is a strategic tool to prevent disputes and simplify the inheritance process. However, it is a complex legal arrangement that requires careful consideration and expert legal advice.

Key benefits of Donation-Partage

Minimises family disputes: By agreeing to the distribution during the donor’s lifetime, children reduce the likelihood of disagreements after the donor’s death. The process helps avoid joint ownership complications and lengthy succession procedures.
Tax advantages: Assets transferred via donation-partage are exempt from death duties. This can result in significant tax savings.
Control over distribution: Donors have the flexibility to allocate assets as they see fit, provided the reserved shares of children are respected. For example, if a French estate is valued at €300,000 with two children, each child is entitled to at least €100,000, while the remaining €100,000 can be freely allocated.
Valuation protection: The value of assets transferred through a donation-partage is fixed at the time of the gift. This contrasts with outright lifetime gifts, which are valued at the time of death, potentially creating unfairness in asset distribution.

Example of valuation discrepancy

Consider a scenario where a father gifts equal sums of cash to his two children. One child invests in property while the other spends their money. Upon the father’s death, the invested property may have appreciated, leading to a perceived inequality in inheritance. With a donation-partage, the valuation is frozen at the time of the gift, preventing such disparities.

Legal formalities

Notarial deed: A donation-partage must be executed before a notaire (a public official specializing in French law).
Spousal participation: If the couple’s matrimonial regime includes joint ownership, a joint deed is recommended to manage both individual and shared assets.
Acceptance requirement: All beneficiaries must accept the donation-partage. If one refuses, the agreement remains valid for the others. The refusing beneficiary retains the right to challenge the donation if it undermines their reserved share.

Special considerations

Reintegration of prior gifts: Outright gifts can be incorporated into a subsequent donation-partage, though they will be revalued at the time of reintegration.
Conditional clauses: Donors may specify that in the event a beneficiary predeceases them, the gifted asset reverts to the donor. Proper drafting is essential to prevent complications, particularly with jointly held assets.

Why choose Tees

While the donation-partage offers substantial benefits, it is a technical legal tool requiring professional guidance. If you are considering using this mechanism to secure your family’s financial future, seek advice from a legal specialist experienced in French inheritance law.

Understanding the Macron Law : Key changes

Posted on 12 March 201723 March 2025 by Sarah O'Sullivan

The Macron Law, passed in France in August 2015, was designed to reduce bureaucratic red tape. Named after French Economy Minister Emmanuel Macron, this legislation has significantly impacted various areas of French law, including real estate. One of its primary goals is to minimize court cases related to planning permission issues.

This article outlines the most notable changes affecting French property owners and potential investors.

Can my neighbour have my house demolished?

Previously, disgruntled neighbour could initiate frivolous claims to overturn planning permissions, often citing minor technicalities. While such cases were not always successful, they caused significant delays and financial loss.

Under the Macron Law, the right to request demolition is now limited to specific areas, including:

Natural reservations and protected perimeters
Coastal strips within 100 meters of the shoreline
Areas protected by the Mountain Law
Natural 2000 sites safeguarding rare species
Sensitive areas with environmental restrictions
Zones with classified heritage buildings

Additionally, two existing conditions remain in place:

The construction must have been completed in compliance with a planning permission that was subsequently revoked.
Any demolition claim must be filed within two years of the court’s final decision to cancel the planning permission.

These changes offer greater legal protection to property owners, reducing the likelihood of groundless claims.

Building on agricultural land

Before the reform, building in agricultural zones was restrictive. Only agricultural structures or the conversion of existing buildings were permitted, without external modifications.

The Macron Law has eased these rules. Property owners can now:

Build extensions to existing buildings
Construct annexes such as garages, swimming pools, and sheds

However, it remains essential to check local planning regulations (Plan Local d’Urbanisme) before proceeding with any project.

Planning permission timeframes

The law has also introduced streamlined approval processes. Standard planning applications must be processed within two months. For projects near listed buildings requiring approval from the Architect of the Bâtiments de France, the timeframe is capped at four to five months.

If authorities fail to respond within these periods, the application is deemed approved. Additionally, planning permissions are now valid for three years, with extensions available upon request at least two months before expiry.

Changes to renting laws in France

In areas of high housing demand, known as “tense zones,” rent control measures apply. These regulations prevent unjustified rent increases, using standardised benchmarks based on factors like location, size, and building age.

From August 2015, landlords must use a mandatory rental agreement template. Furnished rental contracts also require an inventory list to ensure compliance with minimum living standards.

Notice periods for tenants in tense zones have been reduced to one month, while landlords must provide three months’ notice in all cases, with limited exceptions. Additionally, landlords must return deposits within one month if no damage is found or within two months if issues arise.

Buying and selling property in France

The cooling-off period for buyers has been extended from seven to ten days, giving purchasers more time to reconsider without losing their deposit. Sellers can now provide necessary documents electronically with the buyer’s consent. When purchasing apartments, sellers must supply minutes from the last three general meetings of the co-ownership.

Notaire fees and real estate ethics

The Macron Law has also introduced reforms for notaire fees, ensuring they are reasonable and based on objective criteria. Additionally, a code of ethics for real estate professionals mandates honesty, transparency, and up-to-date legal knowledge.

Why choose Tees

Navigating French property law can be complex. Whether you are buying, selling, or renting a property, consulting a qualified French legal professional is highly recommended to ensure compliance with the Macron Law and other regulations. Tees legal advice will help you make informed decisions and safeguard your investment in France.

Avoiding trouble at the end of a commercial lease

Posted on 24 February 201720 March 2025 by Sarah O'Sullivan

We are regularly contacted by landlords and tenants about business lease problems. This is often related to a breach of an obligation relating to the condition of the property and often comes to light at the end of a lease.

What can go wrong?

A landlord and tenant enter into a lease for ten years and throughout that period the condition of the property deteriorates. The landlord does not inspect the property during this time so doesn’t know about the deterioration. The tenant, who sees the property every day, does not notice the gradual deterioration. The term expires and the tenant leaves.

For the landlord: When the lease expires the landlord must incur significant costs in instructing a solicitor and surveyor to set out their claim against the tenant for the tenant’s breach of repairing obligations. What if the tenant cannot pay? The landlord may be left meeting the cost of the repairs themselves if they are to re-let the property. Or they may receive a reduced price in the event of the property being sold. Statutory limitations on lease-end claims also mean that landlords can be left out of pocket.

For the tenant: They are likely to receive the landlord’s claim and they too have little option but to incur significant costs instructing professionals to assess the landlord’s claim, to make sure it is not overstated. They may then be liable for the cost of repairs, consequential losses that the landlord suffers (for example loss of rent), plus the costs incurred by the landlord in bringing the claim, as well as their own costs.

What could they do differently to reduce the risk of all this?

On the landlord’s side – there are usually a number of options provided for in the lease to ensure that the property is not allowed to deteriorate during the term. However, all of them require the landlord to be proactive during the term of the lease. This means the landlord should instruct an appropriately qualified surveyor to inspect the property at regular intervals (for example every two to three years).

Options available to the landlord during the term of the lease

Specific performance / injunction: a claim at Court to seek an Order that the tenant carries out specific works, takes steps to remedy defects which threaten to cause further damage or refrain from acting in a way which is causing damage to the property.

Forfeiture: a process by which the lease may be brought to an end if the tenant remains in breach of the lease. It involves giving a notice specifying the breaches followed by a Court hearing.

Notice of breaches: a process which involves giving a notice to the tenant specifying the breaches and giving a period within which the tenant must complete the works. If they fail to do so the landlord may enter and carry out the works themselves and claim the costs back.

Correct procedure

These remedies are subject to many statutory hurdles and restrictions so it is important to seek advice and follow the correct procedure. Failure to do this can result in the notices being invalid, the claim being unsuccessful, or a claim by the tenant against the landlord or indeed mean that some or all of the costs incurred by the landlord are not recoverable against the tenant.

What can the tenant do during the lease?

A tenant ought to take surveying and legal advice before entering into the lease in order to understand the full extent of their obligations.

Given the potential impact on the tenant’s business of the landlord taking one of the steps available to them in the event of a breach, the tenant is also well advised to be proactive during the term of the lease. Where there are obligations which are periodic (such as an obligation to decorate in the fifth year) the tenant should make sure they remember to do this when the date comes around.

The tenant should also have the property inspected by a professional during the lease and again around a year before the end of the term. This is to review whether there has been any deterioration and what works are required to bring the property up to the required standard.

Another good idea is to set up a fund into which regular payments are made to ensure that money is available to carry out required works.

Be proactive is the message

Early advice and proactive repair management is the best way for both landlord and tenant to protect themselves from the misery that breaches of repair obligations can bring.

Investment in British film or a tax avoidance scheme?

Posted on 24 February 201720 March 2025 by Sarah O'Sullivan

HMRC’s crackdown on tax avoidance schemes: What you need to know

HM Revenue and Customs (HMRC) has released a list of over 1,000 tax avoidance schemes it believes are deliberately designed to reduce tax liabilities. This move is part of a wider government effort to combat tax evasion and ensure fair contributions from all taxpayers.

Accelerated Payment Notices: What Are They?

Once granted new legal powers, expected to come into effect this week, HMRC will issue Accelerated Payment Notices (APNs). These notices require taxpayers to pay disputed taxes upfront, without waiting for a court ruling. HMRC has up to two years from the Finance Bill’s Royal Assent to issue APNs. It is estimated that approximately 33,000 individuals will receive these notices, resulting in billions of pounds in tax demands.

Recipients will have 90 days to pay, unless they formally dispute the validity of the notice. Refunds will only be issued if the court later rules in the taxpayer’s favor.

Understanding Scheme Reference Numbers (SRNs)

Each tax avoidance scheme on HMRC’s list has a designated Scheme Reference Number (SRN). Taxpayers must include the relevant SRN in their tax return. If your tax return contains an SRN, you may be subject to an accelerated payment demand.

Spotlight on Ingenious Film Partners 2

One high-profile scheme on HMRC’s list is Ingenious Film Partners 2. Marketed as a legitimate investment in British cinema, Ingenious Film Partners 2 reportedly generated excessive tax relief for its investors. While investors backed well-known films like X-Men: The Last Stand, Sunshine, and Hotel Rwanda, HMRC claims the scheme was structured primarily to reduce taxable income.

How the Scheme Worked:

Investors committed a minimum of £36,000.
Ingenious loaned an additional £64,000, increasing the total investment to £100,000.
Losses from the films were declared, resulting in approximately £90,000 in tax relief.
High-income taxpayers could offset these losses against their tax liabilities, securing quick tax refunds.

The legality of Ingenious Film Partners 2 is set to be reviewed by a tax tribunal in November.

Industry Response and Ongoing Disputes

Ingenious maintains that it genuinely supports the British film industry and claims its investment schemes have generated over £1 billion in taxable income. The company argues that the government’s actions are unfair and a blatant attempt to boost tax revenue. Investors have also expressed concerns about what they perceive as retrospective taxation.

With legal battles expected to intensify, taxpayers involved in similar schemes should seek legal advice and prepare for potential disputes with HMRC.

Final Thoughts

HMRC’s publication of tax avoidance schemes and the introduction of Accelerated Payment Notices signal a firm stance against tax evasion. Taxpayers are urged to ensure compliance and stay informed about any schemes they may be part of. For those impacted, legal guidance is recommended to navigate the complexities of tax law.

Making sense of compensation for fatal accidents

Posted on 24 February 201724 March 2025 by Sarah O'Sullivan

Losing a loved one is hard but can be even harder if caused by an accident. Amid the grief and confusion, other issues can surface, such as financial worries. While it might feel awkward to seek early advice on compensation claims it could help you to manage.

The role of post-mortems

An unexpected death may trigger a post-mortem. This is a medical examination to determine the cause of the death. Families can appoint a medical professional to attend. If they are dissatisfied with the findings, they can ask the coroner to arrange an independent examination. After the post-mortem, the coroner usually issues an interim death certificate, which allows the family to deal with financial matters and to bury or cremate the deceased. A final death certificate will be issued only after the inquest has delivered a verdict.

The role of inquests

All suspicious or unexpected deaths are reported to the local coroner. In the case of an accident an inquest will usually be called. This is not to establish fault but to determine who has died, where, when and how. The coroner will invite relevant parties to give evidence. For a family this is an opportunity to understand what happened and to ask questions. Legal representation can be useful, whether you intend to claim compensation or not – but good advice will help you decide if it is appropriate. After hearing the evidence, the coroner gives a verdict. The possible verdicts at an inquest include:

death by natural causes
accidental death
suicide
unlawful killing
lawful killing
industrial disease
an open verdict where the evidence is insufficient or inconclusive.

The rules on who can claim compensation after a fatal accident

The law of compensation following a fatal accident is complicated and includes rules on who can claim and what they can claim. First it has to be established that the accident was caused by some other party’s negligence. The estate of the deceased person can then claim for funeral expenses, pain and suffering if death was not immediate, and more. Everybody who dies leaves an estate even if they had no assets or will. Any compensation is distributed to the beneficiaries of the will or those identified by the intestacy rules.

Certain family members can claim bereavement damages, fixed at £12,980 where the deceased died before 1 May 2020 and at £15,120 where the death occurred on or after that date. The family members who can claim are:

a spouse
civil partner
the mother of a child who was under 18 and had never married or, if they were married, both parents of a child who was under 18 and had never married
If the death occurred on or after 6 October 2020, a cohabiting partner of the deceased will also be entitled to claim the fixed bereavement damages award provided they were living with the deceased for at least 2 years prior to their death.

Other people, including spouses, former civil partners, grandparents and siblings can also bring a claim if they can prove they were dependent on the deceased or could reasonably have expected to benefit in future. Their claims might include loss of income or free services such as childcare and domestic help.

All claims have strict time limits, so it is always best to seek specialist legal advice as soon as possible. At Tees we have an experienced team of experts who specialise in fatal accidents and are able to advise on Wills, probate, and financial worries; as well as supporting families with specialist advice through the inquest process and fatal accident compensation claims.

Call us on 080o 015 1165 for a free initial chat, at no obligation, or fill out our enquiry form and a solicitor will get in touch.

Tees settles three birth injury cases, winning £400k for clients

Posted on 24 February 201729 March 2025 by Sarah O'Sullivan

In the last twelve months, Janine Collier, Partner at Tees in Cambridge has settled three medical negligence cases concerning a failure to identify and repair perineal tears resulting in injuries to the anal sphincter complex following childbirth.

What is a perineal tear?

It is not uncommon to sustain a tear between the vagina and the anus during childbirth. First degree tears are so small and superficial (involving just the skin and the tissue surrounding the vagina) that few, if any, stitches are required. Sometimes, the tear extends further, into the muscles beneath the skin (a second degree tear) and this will need to be stitched and closed layer by layer. Around 4% of women suffer a more serious tear which extends to or through the rectum (third and fourth degree tears).

Why should perineal tears be repaired at the time of delivery?

Healthcare professionals generally accept that tears are most important to be identified and repaired at the time of delivery to reduce the risk of infection, recto-vaginal fistulae and various rectal symptomology, including faecal and flatus incontinence.

Obstetricians now undergo a rigorous training programme to minimise the chances of clinicians missing these tears after delivery; to ensure a good quality repair; and to maximise the chances of good continence following primary repair.

What are the consequences of missing a third or fourth degree tear at delivery?

Unfortunately, however, sometimes, these tears are still missed and notwithstanding a delayed repair (sometimes primary, sometimes secondary), the women suffer persistent and debilitating rectal symptomology which may include incontinence of flatus, faecal incontinence, passive soiling etc. Understandably, this has a significant effect on their lifestyle, their relationships with friends, family and Partners and, in some cases, their ability to work.

These women may be entitled to compensation to help them adapt to their situation; to fund future treatment; and to compensate them for any financial losses arising from their injuries.

How can we help you?

If you suffered a third or fourth degree tear; if this was not identified and repaired at the time of delivery; and if you suffer continuing problems as a consequence, please contact our Obstetric Anal Sphincter Injury expert, Janine Collier, for some initial advice. Janine is an expert in this field of medical negligence law. For an initial chat, you can call Janine on 01223 702303 or email janine.collier@teeslaw.com

Tees is proud to support The MASIC Foundation – a charity formed to support mothers with 3rd and 4th degree tears. Visit their website to find resources for support.

Free, confidential advice on medical negligence

£750,000 settlement after negligent knee replacement surgery

Posted on 26 January 201729 March 2025 by Sarah O'Sullivan

Tees secured a £750,000 settlement for a client whose knee replacement surgery was performed negligently.

The incident

Our client [E] underwent total knee replacement (TKR) surgery in March 2011. Unfortunately, a surgical error resulted in his knee and foot becoming misaligned. As a result of the surgery, E could turn his right foot 180 degrees so that it pointed directly behind him.

To correct the malrotation, E went through two painful revision knee replacement operations. He now suffers from chronic pain in his back and leg, and cannot walk long distances. The pain left him unable to work, forcing him to retire from a much-loved career operating military drones.

Seeking legal support

E contacted Tees Law about making a claim against the NHS Trust responsible for his knee surgery. Our expert team of Medical Negligence solicitors took his case on a ‘no win, no fee’ basis.

Building the case

Between 2012 and 2016, our team reviewed E’s medical records, obtained evidence from an expert Orthopaedic Surgeon, and drafted various witness statements from E’s friends and family to support his claim.

The Trust declined to send any statements or expert evidence in return and refused to admit responsibility for E’s injuries until April 2016. Even after admitting responsibility, the Trust continued to dispute the value of the claim.

Settlement achieved

In September 2016, just two weeks before trial, the Trust accepted our settlement offer. The £750,000 settlement will allow E to buy and adapt a bungalow. Due to the chronic pain in his leg, it is difficult for him to climb stairs, and we are confident that the move to a single-storey property will have a very positive impact on his quality of life.

Our specialist financial advisers provided E with independent financial advice to ensure that the substantial settlement will continue to support him.

Reflections on the case

“This was hard-fought and complex litigation in which the Trust accepted responsibility for the damage extremely late,” said the Tees lawyer in charge of the case. “In the end, the defence proved to be without foundation, and I was delighted that E received full compensation for his injuries with the opportunity to come back to court if he requires further surgery, such as an amputation or fusion, in the future.”

Client feedback

“We can’t thank you enough for your efforts in this marathon operation. The meeting went very well with Tees financial adviser, and we want to pursue some of the suggestions proposed, so we are going to be with Tees for some time to come,” said E, following the news that the settlement was accepted.

Free, confidential advice on medical negligence

If you believe you have suffered as a result of medical negligence, contact Tees Law for free, confidential advice. Our experienced solicitors are here to help you understand your options and seek the compensation you deserve.

Using Collaboration to achieve a ‘clean-break’ divorce

Posted on 24 January 201727 March 2025 by Sarah O'Sullivan

Collaboration is a route to resolution which, in the right circumstances, can help couples find an amicable solution when a relationship breaks down.

Background

Sue and James had been married for 23 years and have a 22 year old daughter and a 20 year old son.

For several years prior to instructing solicitors they had not been getting along and been living more and more separate lives under the same roof. They decided to separate and sell their jointly owned house which was too large for either of them with a view to going their separate ways.

Problems Faced

The overall assets, including pensions and James’ company interests totalled approximately £2 million. Sue had worked part-time during the marriage in an administrative position but had no recent skills.

Our Solution

Sue also went to see a collaborative lawyer and both were assessed as being suitable to be accepted as collaborative clients. They held a good deal of mutual respect for one another despite no longer wishing to remain together. Neither had an ‘axe to grind’ but they needed clarity and legal guidance and advice due to the complexity of the situation.

Over a series of 6 meetings (4-way meetings), we assisted Sue and James identify their assets and financial circumstances and needs. This included:

An independent company valuation was obtained early on through agreement and an expert jointly appointed
A full report as to pension sharing and how equality of income might be achieved
Looking at monthly budgets and needs
Looking at James’ and Sue’s housing requirements

Outcome

To conclude, a mutually agreed settlement was arrived at which took into account James’ wish to maintain autonomy over the significant company assets without claim from Sue. Sue took a higher amount from the non-company assets (house and savings) to provide her with enough to buy a new home with a fund sufficient to enable the clean-break on income which both wanted.

Sue and James agreed a ‘pension sharing order’ which was based on both having broadly similar income at retirement.

During the process, the ‘reason’ for the divorce was also agreed within the face to face sessions and papers drafted in between sessions. The two collaborative lawyers were also mindful throughout as to the potential need for counselling and this was discussed with Sue and James, who separately agreed this may assist them. By adopting this approach, it assisted them to stay focussed on the issues and facts, rather than the meetings becoming emotionally too charged.

If you want a lawyer to take a closer look at your situation, our family and divorce lawyers are based in:

Residential market improves as demand and mortgage rates align

Posted on 16 October 020225 March 2025 by Sarah O'Sullivan

Improving conditions in the residential market

According to Savills, activity in the residential property market is picking up as house prices continue to show modest growth.

In August, mortgage approvals were only 3% below pre-pandemic levels. In September, sales agreed and new instructions were 8% and 9% above their respective 2017-2019 averages, highlighting that supply and demand are growing together.

The boost in market activity coincides with a fall in mortgage rates – in August 2023, the average rate for a two-year fixed mortgage with a 75% loan to value (LTV) was 6.2%. In August 2024, this lowered to 4.8%.

Although conditions are improving, house price growth is expected to be limited due to the increased cost of living over recent years. Plus, general market growth will depend on Autumn Budget announcements and any potential reductions to Bank Rate and inflation.

Rental market update

The latest report from Zoopla has highlighted that rental inflation is slowing but tenant demand remains high.

Over the last year, rents have risen by 5.4%; while this is a significant increase, it is the slowest pace of growth in three years. Rental inflation is not slowing at the same pace as household inflation and earnings because tenant demand continues to outweigh the supply of rental properties. There are currently 25% fewer rental homes available than in 2019. This is partly due to landlords deciding to sell—a trend that could continue depending on what tax changes the Labour government may have in store.

September data shows that the average rent for new UK lets was £1,245 per month, but the cost varies significantly from region to region. According to Rightmove, the cheapest UK city for renters is Carlisle, whose average rent is £791 – 41% below the national average. Following closely behind is Hull (£804), Sunderland (£807) and Stoke-on-Trent (£863).

UK Finance’s recommendations for the Autumn Budget

UK Finance has made a series of recommendations to the Labour Party ahead of the Autumn Budget.

The trade association has suggested that the government introduce a Stamp Duty rebate scheme to motivate homeowners to upgrade their homes’ energy efficiency. The body also recommended that Stamp Duty bands be raised annually to correlate with increases in the average house price.

The Stamp Duty threshold for first-time buyers is set to be reduced in March 2025, meaning the tax will be payable when purchasing a property worth £300,000 or more. But UK Finance has urged the Labour Party to keep the threshold at the current higher limit of £425,000.

Chief Executive of UK Finance, David Postings, commented, “We have called on the government to not only introduce measures to bolster growth, but also a range of ideas to help support households and businesses up and down the country.”

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

All details are correct at the time of writing (16 October 2024)