The Gazette 1992

GAZETTE

SEPTEMBER 1992

Computerised Directory Service - Caution The Chairman of the Society's Registrar's Committee, Gerard services or products unless it has been directly involved in their design. Mr. O'Shea was informed that this

the inheritance and the insured. Section 130, therefore, provides relief to such cases by extending the relief to dispositions made by the spouse of the insured where both die within 31 days. At this stage, the legislation governing section 60 policies was sufficiently extended to cover most situations where an inheritance tax liability would arise. However, no provision was made for those disponers who wished to transfer assets during their lifetime. Section 119 of the 1991 Finance Act, introduced relief for certain life assurance policies, to enable the proceeds to be exempt from gift or inheritance tax, to the extent that the proceeds are used to pay gift tax or inheritance tax, in connection with a lifetime gift made by the insured within one year of the proceeds of the policy becoming payable. The legislation requires a minimum funding period for gift tax of 8 years. This means that the proceeds of the policy cannot be used for any assets transferred within this period. In addition to this the Revenue have issued strict guidelines, in terms of encashments taken from policies, and if not adhered to correctly, the policy could become non-qualifying. This section has also extended the use of existing section 60 policies to be used for the purposes of providing for gift tax. At this stage, there is reasonably well developed legislation to cater for most inheritance tax and gift tax scenarios, which allows for a certain amount of flexibility in the provision and use of section 60 and section 119 policies. However, it should be stressed that timing is of the essence in the use of such products for CAT planning. Time and time again, situations arise where a policy Finance Act, 1991 - Section 119

Griffin, is advising members of the profession to exercise caution if they are approached to subscribe to a computerised directory service. This follows reports that a number of solicitors in the Dublin area have been approached by an enterprise variously called Channel 7/ Eurovision/European Business Bureau. According to a recent article in the England and Wales Law Society Gazette, Channel 7 has been the subject of dissatisfaction amongst a number of solicitors in England and Wales. Representatives from ten English firms told of their experiences of having been canvassed to subscribe to an electronic advertising facility at a cost of up to £1,000 in the expectation of obtaining referrals. None of the firms, according to the author of the article, Evlynne Gilvarry, reported receiving any referrals on foot of their subscriptions. Recently a Dublin solicitor, Paul O'Shea, contacted the Law Society at Blackhall Place to say that he had been approached by a sales representative from Channel 7 (UK) Limited. "The gentleman's sales pitch was that his company required a firm of solicitors in Dublin for listing on his company's view data and information network. He explained that Channel 7 was very choosy as to what firms they would list because they wished to protect their own reputation. Our meeting started by way of an interview whereby the Mr. O'Shea said that he then became suspicious and when the representative gave him a copy of a letter written by the English Law Society he decided to phone the English Society's headquarters in London to check up on the situation. The Law Society of England and Wales has stated that it does not recommend representative asked me many questions about our firm".

was not the case with Channel 7. The letter issued by the Law Society was one from the Society's Ethics Committee pointing out that subscribing to Channel 7's electronic advertising facility would not breach the solicitors introduction and referral code, which, in any event, would have no application to foreign lawyers and that it was not a letter of endorsement. Paul O'Shea is not the first Irish solicitor to be approached. Another Dublin firm of solicitors has notified the Society that it too was approached (last Autumn) by a firm called Eurovision styling itself as "information providers on Channel 7". A principal in the firm said, "We were told by Eurovision that we had been selected on the basis of our reputation. We paid over a total of £602.58, including the VAT, for a six months subscription. We heard nothing from them since although we had written to them three times seeking a hard copy confirmation of the text that it was agreed would appear on screen about us. Finally I did receive a letter stating that Eurovision had gone into liquidation." representative of Channel 7. "He informed me that our firm was shortlisted from a list of ten firms and that he had no interest in having any other firm than ours on the listing". Paul O'Shea said that notwithstanding this sales pitch, he has little doubt that other Irish solicitors will be targetted. Gerard Griffin, Chairman of the Registrar's Committee, says "Obviously, it makes sense for solicitors to check out as fully as possible the credentials of any person or company who approaches them offering services of this kind". • 299 Paul O'Shea reports a similar method of approach by the

cannot be effected due to age or ill health. The best advice is to act now and identify those clients who may have a CAT problem and to plan accordingly. q