Once I inherit my money, that’s it – right?

Not necessarily.

The Court of Appeal recently held that £2.2 million paid to Hilary Harrison-Morgan had to be repaid after she inherited it from her late ex-partner and co-habitant’s estate.

The late Dr Kahrmaan started a relationship with Hilary Harrison-Morgan and once this developed they began to cohabit and then later had twin sons together. They lived together in their London home in Belgravia. They split up in 2014 with the late Dr Kahrmaan returning to Germany.

Despite Miss Harrison-Morgan and her children living in the property a development company made an offer, the terms of which rested upon the property being sold with vacant possession.

Dr Kahrmaan died whilst such discussions were ongoing leaving all the parties involved in the lurch.

The appointed executors of the late Dr Kahrmaan’s estate were his daughters from his previous relationship. Miss Harrison-Morgan alleges she struck a deal with the executors, who had the requisite authority to enter into such a deal, that the profits of the house would be split between her and the late Dr Kahrmaan’s four children.

Once sold, the £4.4 million in profits was split in accordance with the purported agreement with £2.2 million being transferred to Miss Harrison-Morgan.

Following this, one of the executors, being Alice Kahrmaan commenced legal proceedings against Miss Harrison-Morgan on the grounds that there was an express common intention constructive Trust which already existed with the late Dr Kahrmaan’s business partner and such payment was illegal and in breach of the terms of the Trust.

When the matter went before the High Court, Miss Harrison-Morgan argued that the arrangement was made with the late Dr Kahrmaan on the basis that payment would be made to her if she complied with vacant possession, which she did.

On appeal, the Court of Appeal found in favour of the executor and ordered that the money should be returned to the pre-existing Trust intended for the four children of the deceased.

All orders were stayed until the final appeal is made with the case heading for the Supreme Court.

If you require legal advice or assistance in regards to contentious probate and Trusts or Inheritance Act Claims, please do not hesitate to contact a member of the Dispute Resolution Team here at Franklins Solicitors either on 01604 828282/ 01908 660966 or at litigation@franklins-sols.co.uk.