Gifting Property Shortly Before Death

It is not uncommon for people who are just about to die, to leave money, property and possessions to their friends and loved ones. This can cause legal problems however, if the "gifts in contemplation of death", as they are known, contradict the last will left by someone. 

A long running inheritance dispute worth £2.8 million, which invokes ancient Roman law, is now going to appeal.

Mr Al Mahmood died on 23 October 2020, two weeks after his wife had passed away. At the time of his death, Mr Al Mahmood was living with a friend, Mr Rahman. Mr Al Mahmood and his wife had come to rely on Mr Rahman for assistance in their old age.

Mr Al Mahmood had made a will in 2015, leaving his estate to his  brother in law, and his three daughters (Mr Al Mahmood's nieces).

During the COVID19 lockdowns, Mr Al Mahmood tried to execute a new will, making Mr Rahman the sole beneficiary of his estate. During lockdown, it was difficult to find witnesses to wills. Instead, Mr Al Mahmood sent a text to a will draftsman setting out his wishes.

Mr Rahman alleged that on 15 October and 23 October 2020, Mr Al Mahmood gave him all of his assets in the UK - including chattels, access to his bank accounts and all land and property registered to him. 

The Judge in the first claim, ruled that Mr Rahman validly inherited the entire estate because Mr Al Mahmood had made a ‘gift in contemplation of death’ (also known as a donatio mortis causa) which is an ancient Roman legal principle. This type of gift is given by a person who expects to die imminently, and it only takes effect upon their death.

The challenge for the court in Mr Al Mahmood's case was to interpret and apply such ancient legal principles to a modern, and unprecedented, context. Due to the importance of the legal precedent set by this case, Mr Al Mahmood’s family members have been granted permission to appeal the First Court's decision in the Court of Appeal, giving them the opportunity to examine the law in this area even further.

A case like this highlights the intricate balance between respecting the intentions of the deceased and protecting integrity of the deceased's estate, the rights of other potential heirs under the will or creditors, and ensuring the law is justly applied. The outcome will be very interesting for those practicing succession law. 

If you are involved in a dispute about a will, and would like to speak to an expert solicitor, contact us today.