A Court of Appeal case that has pitched siblings against each other over their millionaire brother’s legacy should serve as a reminder to keep an up-to-date Will that clearly sets out your wishes rather than relying on family members to ‘do the right thing’.
The case involves a former divorce lawyer turned health food entrepreneur, Alan Lorenz, who built a considerable fortune selling weight-loss milkshakes after joining the Herbal Life company.
Reported as ‘abhorring tax’, Lorenz built a fortune that included a £3.5 million home in Malta, a £4 million home in central London, £8.8 million in cash and £2.1 million in rights to the health drinks company.
On his death, he left his entire estate to his Maltese partner having entered into a civil partnership with her just a few weeks earlier.
Lorenz has two brothers and a sister who have argued they have a right to half of their deceased brother’s estate, claiming Lorenz had trusted his partner to ‘do right’ by his family and divide his estate.
His ‘abhorrence’ of paying tax, they argue, meant he left his entire estate to his partner simply to avoid inheritance tax. They claim Lorenz created a ‘secret trust’ where his partner would inherit his estate on the condition that half would be shared with his siblings.
Earlier Wills drafted by Lorenz did leave his siblings a share of the estate, although later versions left his fortune entirely to his partner
The High Court dismissed the case, with the siblings’ appeal currently being heard by the Court of Appeal.
Sense and Sensibility
Fans of Jane Austen’s Sense and Sensibility will recognise the themes of moral integrity and choices under financial pressure. Whilst the novel may conclude that true fulfilment comes from a moral wisdom that combines hearts and minds, the law is decidedly black and white.
This case underlies the importance of taking good and early advice regarding your Will and tax planning. It is rarely sensible to trust people to ‘do the right thing’ and, as the siblings are discovering, it is extremely difficult – and costly – to try and prove the unclear or unwritten motives of deceased family members.
One of the best legacies a wealthy individual can do, irrespective of their position towards tax, is to leave a well-ordered estate that includes a Will with clear instructions as to your wishes.
Contact our Private Client Solicitors
If you are in need of advice or assistance on any of the legal issues mentioned in this article, please contact Olivia Meekin, Partner or any member of our experienced Private Client team on 020 7631 4141 or email privateclient@bishopandsewell.co.uk in the first instance.
The above is accurate as at 29 May.
The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
