Paul Hewitt. Recent legacy cases from the courts lesson for legacy marketing?

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1 Recent legacy cases from the courts lesson for legacy marketing? Paul Hewitt

2 Recent Legacy Cases from the courts - lesson for legacy marketing? 1975 Act claims including Ilott v Mitson Charity Commission guidance Probate Disputes Lessons

3 Inheritance (Provision for Family and Dependants) Act 1975 reasonable financial provision

4 Wright v Waters

5 Ames v Jones Lifestyle choice London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

6 Ilott v Mitson

7 Ilott v Mitson (cont.) First Instance 2007

8 Ilott v Mitson (cont.) 2 stage test: a) Does the Will (or intestacy rules) make reasonable financial provision for the applicant? If not, b) Should the Court exercise its powers under the 1975 Act and, if so, in what manner?

9 Ilott v Mitson (cont.) First Instance High Court

10 Ilott v Mitson (cont.) High Court Court of Appeal First Instance

11 Ilott v Mitson (cont.) High Court Court of Appeal High Court First Instance

12 Ilott v Mitson (cont.) High Court Court of Appeal High Court Court of Appeal First Instance

13 Ilott v Mitson (cont.)

14 Ilott v Mitson (cont.) The Charities do not make any case that they have resources or needs to be taken into account For the Charities, any money from this estate is a windfall. The only beneficiaries are the Charities, who can have no expectation either: the deceased had no connection with the Charities. [The Charities] have no demonstrated need or expectation. since [the Charities] do not rely on any competing need they are not prejudiced by what may be a higher award than the court would otherwise need to make.

15 Ilott v Mitson (cont.) High Court Court of Appeal High Court Court of Appeal Supreme Court First Instance

16 Charity Commission Guidance Trustees have a duty to protect or secure their charity s assets and, where necessary, to recover, assets belonging to the charity; taking or defending legal action might be one way to fulfil this duty London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

17 Charity Commission Guidelines cont. A charity s funds must be spent on carrying out its aims and the trustees have a duty to act in the best interests of their charity a decision to take or defend legal action must be made exclusively in the best interests of the charity, having considered whether or not another course of action is available London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

18 Charity Commission Guidance cont. In making their decision, the trustees should: take and consider legal advice consider and assess the economic prospects of success or failure and the impact on the charity consider whether their intended actions are proportionate in the circumstances decide whether it is necessary or appropriate to ask for the commission s consent or advice London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

19 Charity Commission Guidance cont. Whatever the outcome of legal action, the downsides are typically that it will cost the charity time and money and may have a negative impact on its reputation even if the charity wins it may not recover all its legal costs London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

20 Charity Commission Guidance cont. Unless time constraints for bringing or responding to an action prevent it, the commission will expect trustees to explore and, if appropriate, rule out all other reasonable options open to them to resolve the issue, such as alternative dispute resolution or agreeing a legal compromise London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

21 Charity Commission Guidance cont. Unless a charity has the necessary in house experience, in order to make a proper decision it will usually be appropriate to take and consider professional legal advice, as well as whatever other specialist advice they might need to inform their decision London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

22 Charity Commission Guidance cont. Transparency about the reasons for taking legal action is very important in explaining why the trustees decided on this course of action the trustees must be able to justify their decision because the charity s actions may have an impact on the charity s reputation and supporters London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

23 Charity Commission Checklist London l Geneva l Zurich l Milan l Padua l New York l Greenwich l New Haven l San Francisco l Hong Kong l Singapore l BVI

24 Seals v Williams Judicial Early Neutral Evaluation The Court giving its two penny worth

25 Chekov v Fryer

26 Dellal v Dellal

27 Dellal v Dellal (cont.) The model The designer The actress

28 Dellal v Dellal (cont.) Jack m1. Zehava r. Katya Douglas m2. Ruanne Guy Lorraine Diane Gabrielle Jasmine Rowan Zack Catherine

29 Dellal v Dellal (cont.) Probate million Rich List million

30 Kebbeh v Farmer and Others Domicile

31 Brussels (iv) Domicile

32 Wooldridge v Wooldridge A few million quid more widow 1975 Act claim

33 Williams v Martin Meaning of household

34 Lewis v Warner Meaning of Maintenance...exceptionally, there has been a failure to make reasonable financial provision for someone...not short of money

35 Lloyd v Jones Voices of Anglers Will survives despite fears of Saddam Hussein

36 The Royal Society v Robinson When United Kingdom includes Jersey and the Isle of Man

37 Further Lessons