A widow who had to pay interest on inheritance tax because of the negligence of her solicitor has been awarded £15,600 damages in the Circuit Civil Court.
Ms Maribel MacNeill, of Long Walk, Galway, had sued William B. Glynn & Co, solicitors, Augustine Court, Augustine Street, Galway. Mr David Hegarty, for Ms MacNeill, told the court that following the death of her husband, Seamus, his client had inherited about £350,000 which had been left in trust from her sister-in-law, Ms Maura Sweeney.
Mr Hegarty said Ms MacNeill had to pay £125,000 inheritance tax and a net additional outlay of interest of £15,600 to the Revenue Commissioners. She fell liable for the interest payment due to the failure of her solicitor, Mr Glynn, to advise her that the tax should have been paid within a three-to-four-month period of grace allowed by the Revenue. Judge Elizabeth Dunne, awarding a decree for the amount of interest and costs against the legal firm, said Mr Glynn was Mr Mac Neill's solicitor and Ms MacNeill had become his client following her husband's death. She said it was incumbent upon Mr Glynn to set out in some detail the likely scenario in relation to Ms Mac Neill's liability for inheritance tax.
When Ms MacNeill removed some documents from his office, Mr Glynn was aware the period of grace was running out. "It seems to me a solicitor signing off or terminating a relationship with a client should at that stage take steps to make sure they are aware of their legal responsibility in relation to the matters which they have consulted that solicitor for," Judge Dunne said.
She said Ms MacNeill had consulted Mr Glynn to deal with the administration of her husband's estate and to advise her as beneficiary of it. Failing to advise her that she still had a period of time within which to deal with the question of inheritance tax, and that if she did not do so within that period she would leave herself liable to interest, was negligent on the part of Mr Glynn.
