Is a promise of an inheritance legally binding?

The recently decided case of Horsford v Horsford (2020) serves as a useful reminder of the requirements for a proprietary estoppel claim.

Proprietary estoppel claims are becoming increasingly common in farming/agricultural circles. These cases can arise in the context of an inheritance dispute/will dispute or sometime during the lifetime of the parties.

In the Horsford case, the proprietary estoppel claim arose from a partnership dispute concerning a farm in Cambridgeshire. Marian and David Horsford purchased College Farm in the 1960’s. Marian was then gifted the adjoining Whitleather Lodge farm in the 1980’s. Shortly after this, the couple’s son Peter then joined the family farming partnership after he completed agricultural college and he subsequently worked on the family farm for many years.

The family partnership agreement provided that a partner could retire by notice, after which the remaining partners had the option to purchase their interest, in which case the partnership land was to be revalued and the price was payable in instalments over 5 years. After Marian’s retirement, Peter exercised the option to purchase. Marian sued for the amounts due to her from Peter. Peter then contended that he shouldn’t have to pay due to Marian’s repeated promises that he would receive her share of the partnership assets upon her death. Peter contended that he had relied upon these promises to his detriment.

The Court rejected Peter’s claim and he was ordered to pay Marian the sum of £2.5 million for her share of the partnership. The Judge concluded that the statements of intention made by Marian were not unequivocal promises. The Judge also stated that Peter had financially benefited from the partnership over the years and accordingly that he had not suffered any detriment by his work in the family farming business.

Our contentious probate solicitors say that a person considering a proprietary estoppel claim must carefully consider the following factors:

What promises/ statements have actually been made?

What statement has the promisor (the person making the promise) made to the promisee (person to whom the promise was made). What words were used and in what context? i.e. “one day this will all be yours”. Has the promisor put this in writing to the promisee or made a will backing up their intentions?

Have the promises/statements been relied upon?

Have other jobs/opportunities been turned down/not pursued by the promisee because of the promise to receive assets or perhaps a share of a business at some point? Is there any evidence of that? Has the promise worked for many years in the anticipation of what has been promised?

Has there been detrimental reliance?

Has the promisee accepted a lower wage or no wage in reliance of a promise to receive an asset/interest in a business or property? Has the promisee perhaps invested in a business for example purchasing stock or materials?

If the promise does not come to fruition would the promisee be left without a home or with no income/less income than expected?

All proprietary estoppel cases whether or not they arise in the context of an inheritance dispute will fall on their own facts. It is important to take advice from a specialist contentious probate solicitor.

If you would like information about disputing a will, probate disputes or inheritance disputes, please call 01902 424927 and ask to speak to one of our specialist contentious probate lawyers. Our team at George Green LLP are regarded as one of the Midlands' leading teams of will disputes and contentious probate solicitors.

We offer a free initial free telephone consultation and we can often act for clients who want to contest a will or commence an inheritance dispute/probate dispute on a no win no fee basis.

Alternatively, please e-mail us at contentiousprobate@georgegreen.co.uk providing a brief summary of the issues you wish to discuss with us, along with your contact details.

We have a dedicated practice team of contentious probate solicitors, covering all areas of the UK (with offices near Birmingham and in Wolverhampton) who are experienced in dealing with all types of contentious probate matters, including challenging a will and estate disputes.