Are promises about bequeathing family farms enforceable?

There have been many well-publicised cases involving family farms, where promises about who will inherit the land and business are not kept. What can be done legally in these circumstances.

How do disputes about farm inheritance arise?

There are many different reasons why disputes can arise concerning the passing on of a farm once the owner of the business dies. 

It is very common throughout the South West and further afield, for one of the children of the farmer to stay and work with parents on the farm. Often, the child can be persuaded to work on the family farm for a very low wage, if they are promised that they will inherit the land and the farm business. 

If the arrangement works, it can be fair, but what happens if promises are not recorded legally, if minds change, or if others in the family wish to dispute the arrangement?

Farm Inheritance Case Study

The case of Cleave v Cleave [2024] EWHC 2492 (Ch), involved a 52-acre family farm in Devon, and was the subject of a dispute which was head in court in 2024. The Cleave case offers valuable insight into the complexities of property law, particularly regarding promises of inheritance involving farms.

In this case, the Claimant argued that his parents had promised he would inherit the family farm, leading him to dedicate his working life to it. The Defendant, his mother, challenged this claim, alleging that the documents transferring the farm to him had been improperly executed and should be void due to undue influence an/or unconscionable bargain. She had also made a new will, leaving her estate to her sister-in-law’s grandson, reflecting a change in her intentions for the farm from the promise made to her son.

The Court found in favour of the son. The judge disagreed with the mother's claim that the documents had been improperly executed and witnessed. The judge was also convinced that the son had satisfied the requirements for a claim for proprietary estoppel. 

The son was therefore able to inherit the farm, as he had been promised all along.

This case highlights the complexities of property disputes, especially when family promises are considered in a legal context and demonstrates that it is crucial to ensure that promises involving inheritance or ownership of land are clearly and legally documented so as to avoid family disputes later on.

What is Proprietary Estoppel?

Proprietary estoppel is a legal concept which covers circumstances which mean the ownership of land can pass from one person to another as a result of informal promises, rather than the usual methods of paper-based legal transfers.

There are various elements which need to be satisfied, as in the Cleave case, for a claim of proprietary estoppel to be successful:

• Firstly, there has to be a clear representation of what was intended by one party to the other. In other words, there has to be a promise made by the owner of the farm that one of their children would inherit it, if they agree to stay and work there.
• Secondly, there has to be an element of reliance by the child of the farmer - they have to be able to demonstrate that the relied on the promise. In the Cleave case this was achieved by the Claimant showing that he had worked on the farm his whole life, and not in any other job. He had therefore clearly relied on the promise which was made to him.
• Thirdly, the reliance of the Claimant has to have been to their detriment. The Claimant in the Cleave case did not pursue a career or earn money elsewhere, if the promise had not been made to them. In other cases, a Claimant could prove that they had spent their own money investing in the farm, on the understanding that it would be their business one day.  

In very simple terms, proprietary estoppel covers circumstances where someone has been promised land, acted on that promise, and faced a disadvantage because they relied on the promise.

Get Help With Dispute About Family Farm

If you need help with a dispute about a family farm, we have decades of experience in this field and can help. Disputes can involve:

• proprietary estoppel claims where you have been promised you will inherit farm land;
• being disinherited if a sibling wrongly claims that they alone were promised they would inherit a farm;
• arguments about whether a will or a legal document transferring ownership of a farm has been dealt with properly; or
• defending a claim brought by someone who claims wrongly that they have the right to inherit your farm.

Contact one of our expert lawyers today to find out how we can help you with your farm dispute.