The inheritance dispute case of Lothian v Dixon and Webb [2014] illustrates the problems that can arise if a loved one dies without an up to date Will.
Lothian v Dixon and Webb
Case background
Sisters, Mrs Lothian and Mrs Webb, had a cousin, who in 1983 made a Will leaving her estate to both sisters equally.
Over the years the cousin lost touch with Mrs Webb, but remained close with Mrs Lothian. When the cousin became terminally ill in 2010, she asked Mrs Lothian to come and live with her to help with daily tasks and the running of the seaside hotel that she owned. In return, she would leave Mrs Lothian her entire estate, worth over £1 million in company shares and other assets.
Mrs Lothian accepted the offer, despite it involving considerable upheaval. She moved from her home in Scotland, where her husband remained with his business, and nursed her cousin through illness as well as undertaking general duties for the hotel. Her husband also visited at weekends and performed general duties as required.
The cousin died two years later. Despite giving instructions to her solicitor for a new Will which reflected their arrangement, the cousin died without executing it.
Legal proceedings
Mrs Webb accepted that Mrs Lothian had kept her promise to the cousin, but argued that her sister had also benefitted from the situation through free board and lodging and using the hotel for family holidays. She argued that this counterbalanced the Lothians’ detriment, and therefore they should only be entitled to around £40,000 plus travel expenses.
The Judge, Roger Kaye QC, did not agree. He found that Mr and Mrs Lothian had significantly changed their lifestyle to help the cousin, at substantial detriment to themselves. They were compelled to live apart for two years, and by the time the cousin died Mrs Lothian had a number of health problems herself, including the need for a hip replacement which she had postponed in order to assist her cousin.
The Judge found that the board and lodging they had received did not count as:
“any kind of meaningful compensation or countervailing benefit for the open-ended commitment they gave at the outset and to which they both adhered”.
He found that the only appropriate award in this case was to grant Mrs Lothian the entire net residuary estate, after satisfying any legacies payable under the earlier Will.
Comment
The case of Lothian v Dixon and Webb demonstrates that in appropriate circumstances, the Courts are willing to uphold a promise made by a testator of a Will that is contradictory to their actual Will, if the promise was acted on by a party to their detriment.
However, this was not without much acrimony between the parties, lengthy litigation and no doubt time and expense for both sides, which stresses the importance of keeping Wills up to date.
How Nelsons can help
Kevin Modiri is a Partner in our expert Inheritance Disputes team.
If you need assistance or advice about an inheritance claims or drafting a Will, Nelsons has a team of expert solicitors in Derby, Leicester and Nottingham who specialise in this area and will be happy to discuss your situation.
Contact us via our online form or call 0800 024 1976 for information.