“One day, all this will be yours” can be legally binding. Under proprietary estoppel, if you repeatedly promise a child or employee that they will inherit the farm, house or business, and they rely on it to their detriment — years of low pay, a career given up — the court can override your Will.
- Three elements: assurance, reliance and detriment.
- Guest v Guest [2022] UKSC 27: the starting point is the promise itself, adjusted so the person receives no more, and no sooner, than promised.
- Winter v Winter [2024] EWCA Civ 699: a lifetime committed to the family business can be detriment, even where the pay was reasonable.
The planning lesson: say what you mean, put real commitments in writing, make sure your Will matches what you have told the family, and record your reasons if you are treating children differently. A promise that sits alongside a matching Will rarely ends up in court.
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Six short reads each week on tax, Wills, family wealth and running a business, from John Ireland. Since 1996, three decades of protecting families.