Promises Made Outside a Will can be Binding

Anyone who has seen the film “Monty Python and the Holy Grail” may recall the Lord of the Manor taking his son to the window and saying “One day son, this will be all yours!” to which the son replied “What, the curtains, Father?”  If the father reneged on that promise in his Will, his estate could be forced to honour it. Conditions apply.

When a person makes a promise causing another to act to his detriment due to that promise, it can be enforced under the doctrine of Equitable Estoppel.

From the cases, here are the situations to look out for:

 a)           A son works on a farm for low wages for years in reliance on a promise it will be left to him. It isn’t.

 b)           A person spends money, time, and effort on improving a property in reliance on a promise from the property owner that it will be left to him. It isn’t.

 c)           A niece cares for an elderly aunt relying on a promise that the house will be left to her. It isn’t.

The Plaintiff must prove that:

a)           He reasonably assumed that the person making the promise was serious;

b)           The defendant encouraged his expectation;

c)           He acted to his detriment as a result of that expectation; and

d)           It would be unconscionable for the promise not to be kept.

Minor expenditure by the Plaintiff is not enough.

 

The Court will not be a push over as one Judge said “It is notorious that some elderly persons of means derive enjoyment from the possession of testamentary power, and from dropping hints as to their intentions, without any question of an estoppel arising.”

 

Executors and Trustees are cautious as they can be personally liable. So once such a claim is made, it would be a brave decision to give money away without a court order. Therefore, a claim of Equitable Estoppel can act as a wild card causing a Trustee to exercise caution and not release the moneys. But if a claim is made without merit it is likely that costs of all the other parties will be awarded against the claimant.

Finally, the promise should be “clear and unambiguous.” Ideally, drink should not be involved.


© Paul.Brennan 2016. All rights reserved.

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