When Promised Inheritances Fail To Appear Proprietary Estoppel

What proprietary estoppel means in brief is that where you have been promised a particular inheritance, and in return have acted to your detriment or in some cases changed your life to keep your side of the bargain, then the legal doctrine of estoppel can potentially be called on to enforce your claim to benefit from the broken promise. Interestingly, such claims can be also be brought if the promised inheritance is clearly not going to happen during the promisors lifetime. For example, when a new Will is made, disinheriting the person promised the inheritance.

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Many of these types of case concern farms and businesses where someone has typically worked for low wages on the basis that they were to inherit the business. But it can be homes or other property.The key requirements for this sort of action are:

  • promise or assurance has been made
  • the promise was relied on
  • reliance on the promise caused the claimant to suffer detriment

What is a ‘promise’ in a proprietary estoppel claim?

One day, all this will be yours” is the way a promised inheritance is often brought up as evidence in estoppel cases. But the promise can take many forms, and written evidence is clearly

proprietary estoppel, promised inheritance
Avoid Court if possible!
stronger than verbal promises from the deceased, though not often available.  The judge will decide on the evidence how strong the promise or assurance was. Evidence from an independent third party in support of the claimant is very helpful especially if they have nothing to gain from the decision.It’s common that proprietary estoppel claims are very much a case of consideration and assessment of one party’s recollection of events against the facts and the recollection of those who usually have a competing interest. Indeed, the latest case at the time of writing was settled in the Supreme Court by a majority of 3 to 2 out of the five senior judges.   A layman probably could never even guess what the legal fees would have been by then.I should say that bringing a weak case could be ruinous, as it might well result in the other sides legal costs being awarded to YOU to pay, as well as your own costs. But it might enable a negotiated or mediated settlement before court costs. There are mediators who specialise in proprietary estoppel claims (and the agricultural sector, if relevant to the case.  But if you are concerned, it’s possible the very last paragraph may help.Detailed witness evidence is vital, and should be gathered at the earliest possible moment, as witnesses may be elderly. Where time is particularly short in terms of the life expectancy of a witness, video evidence may be accepted.

What is ‘reliance’ in a proprietary estoppel claim?

When a promise has been made, the claimant must believe the inheritance will materialise in due course. The court will also expect the claimant to have relied on the promise to influence decisions on life or career choices. Maybe, moving to a property as it is close the land or farm to which the claim relates in return for the promised inheritance.

 

What is ‘detriment’ in a proprietary estoppel claim?

Detriment is really loss of what could have been expected had the claimant not been relying on the promise. Often the claimant will have been working for some time at well below market rates in a bid to boost what they expect to be their inheritance, or giving up the prospect of a more lucrative career elsewhere in return for the promised inheritance. The Judge will review the extent of the effective loss the claimant suffered and will expect some evidence of it. Bear in mind that the claimant may also have gains to consider, such as free accommodation which reduces the overall loss.The judge will then consider the balance as part of the process of making a judgement concerning the inheritance.

How much is a claimant entitled to in a proprietary estoppel claim?

If all the elements of proprietary estoppel are established, and the court deems that it’s unconscionable to let the deceased break a promise, the judge will consider making an award. It may be for the full claim, or a part of it, or a financial alternative.The award, if any, will be what the court consider fair in all the circumstances.

How much does a proprietary estoppel claim cost?

Proprietary estoppel claims are usually defended, so there are substantial costs (which can reach 6 figures) on both sides, and the losing party will generally pay both sides costs, so read the paragraph about mediation, and the next paragraph too. Clearly, if the promised inheritance is not significant, it is important to weigh the situation carefully before going to court.

 

A proprietary estoppel claim is often linked to An Inheritance Act claim, as a fallback.

Which is claim for provision under the Inheritance (Provision for Family and Dependants) Act 1975. The reason for this is that if a claimant is not successful with their proprietary estoppel claim, it is quite possible that it will leave the claimant in a financial position such that he or she could properly bring a claim pursuant to the Act. If this is the case, it’s important to be aware of the period in which those claims should be made.

STEP Published some information on proprietary estoppel:

In Gladstone v White and others, solicitor Leigh White had moved into a GBP15-million stately home owned by a long-term friend, David Gladstone, after the death of White’s son in 2017. Later they fell out, causing Gladstone to remove her as trustee and beneficiary of the estate trust and ask her to leave. She refused and lodged a legal claim that, over the course of many years, Gladstone had promised she would inherit the property after he and his wife had both died. White had never been given any assurances in writing and Gladstone defended the claim by stating that he had never made any such promise or named her as beneficiary in any of his wills. White responded that he had simply forgotten his promise, claiming that she had given up her career to look after Gladstone, his wife and the house and that she had relied on his promise to her detriment.The England and Wales High Court (EWHC) found against White, ruling instead that Gladstone’s intention was that White would merely have ‘significant managerial role’ in running the property, which was Grade 1-listed. The EWHC ordered White to move out so that Gladstone could move back in. The estate remains in a discretionary trust for the benefit of Gladstone’s family.In Mate v Mate and others (2023 EWHC 238 Ch), the claimant was Julie Mate, one of five children of a dairy farming family. She alleged that her mother had promised her an equal share of the proceeds of selling any of the farmland. In 2007, she said, the farm ran into some financial difficulties and she was encouraged to look into development potential for the part of the dairy farm run by her parents and, after her father’s death, her mother and two brothers. She had engaged a planning consultant and worked with him for many years with a view to removing the land from the Green Belt to allow for its allocation for housing, with the intention of sharing the proceeds of sale equally among the family. However, in 2015 she discovered that her mother and brothers had agreed to sell part of the land to a developer for GBP9 million without informing her. She entered claims for both proprietary estoppel and unjust enrichment.She lost the proprietary estoppel claim because she was unable to prove that her mother had ever made such a promise or assurance. However, her claim in unjust enrichment won her an award of GBP652,000, since it was clear that her mother and brothers had been enriched by her work to make the farmland available for residential development. This enrichment was at Mate’s expense, as she had paid the fees of the planning consultant and spent considerable time on the project.’These cases confirm that the nature of any promise or assurance is fundamental to subsequently establishing a claim in proprietary estoppel’, notes law firm Mishcon de Reya. ‘Without this, the remaining limbs of the test do not require consideration by the court and any such claim will fail.’Should you wish to contact us on either topic, please give us a ring or email via our contact page.   There is more information about disputing a Will here.Free Probate Dispute Checker                 What is a Caveat?                            Contest a Will or Intestacy             Problems with Executors etc          When Promised Inheritances Fail to Appear     Claims for Support 

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