Rhatigan had offshore trusts

DECEASED PROPERTY developer Brian Rhatigan, whose will is the subject of a legal dispute, was questioned by the tribunal investigating…

DECEASED PROPERTY developer Brian Rhatigan, whose will is the subject of a legal dispute, was questioned by the tribunal investigating secret offshore Ansbacher accounts, the High Court heard yesterday.

Sharon Scally, solicitor and executor of the will, said Mr Rhatigan was questioned “by the Ansbacher tribunal” and the transcripts were made available to the Revenue who started an investigation into his affairs.

Ms Scally, principal of Amorys Solicitors, Sandyford, Dublin, was giving evidence on the fourth day of testamentary challenge proceedings over a May 2005 will made by Mr Rhatigan. The court has heard Mr Rhatigan declared assets of between €2 million and €3.3 million when making the will and had also set up a number of trusts, the value of which were unknown at the time of his death. His estranged wife claims the value is at least €6.7 million based on a Revenue assessment.

The main trust was a Cyprus-based “golden promise trust”, the court heard. There were also Isle of Man-based trusts called the “doni” and “dolphin” trusts, which also processed various assets and loans of Mr Rhatigan, including the proceeds of the sale of his former home, in Rathmichael, Co Dublin, where he lived with his partner Rachel Kiely and their two children.

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Ms Scally has brought proceedings seeking an order that the 23-page will be admitted as his last will and testament.

Mr Rhatigan’s estranged wife, Odilla Rhatigan, of Brennanstown Road, Cabinteely, Dublin, is counter-claiming her husband was not of sound mind when he made the will. She claims he had severe mental impairment due to motor neurone disease and was only able to communicate through hand signals and with a computer device.

Ms Rhatigan has also claimed, when their marriage broke down, Mr Rhatigan had promised her she would benefit from half of his estate if she did not pursue a legal/judicial separation. She alleges he put significant assets into trusts to defeat her legal right to her share of the estate.

Ms Scally has denied those claims and yesterday, denied she had a conflict of interest by being Mr Rhatigan’s solicitor and executor. She said Mr Rhatigan was questioned by the tribunal into Ansbacher and, as a result, the Revenue began its investigation but she did not think it raised a tax assessment against him until after his death. He was not in a physical condition to deal with the taxman before he died, she said.

Under cross-examination by Michael Counihan SC, for Ms Rhatigan, Ms Scally said she had met with a tax official after his death as part of the investigation into his affairs and later provided a report to them. She said that while she knew about the golden promise trust, she had been assured by Mr Rhatigan, when he was making his will, that he was not a beneficiary or a settlor (someone who had set up the trust).

Ms Justice Mary Laffoy remarked, that even at this point in the case, she was entitled to draw inferences that Mr Rhatigan had a lot more property than was in his will.The case continues.