PT-2024-000461 - [2025] EWHC 2285 (Ch)

John Keeling Walker died on 13 January 2002 (“the deceased”) leaving a will dated 24 October 2001.

At the time of his death, the deceased and his third wife, Violet Walker (“Vicki”), lived at Fairfield, Lyndon Road, Hambleton, Rutland, LE15 8BG (“the Property”). They held the Property as tenants in common in equal shares. Following his death, his equal half share of the Property passed to his estate to be administered in accordance with the terms of his will.

Under the terms of the deceased’s will the claimants (his daughters) (“JSH” and “Ms Cosnier” and together “the claimants”) together with Vicki (their stepmother) were appointed as executors. Vicki remained an executor until July 2023 when she was removed at an uncontested hearing. She subsequently died on 15 September 2023 aged 97. Stephen Bradshaw, her son, is her executor (“Mr Bradshaw”). Vicki’s estate/Mr Bradshaw are not a party to these proceedings.

Under the terms of the will Vicki and a Mr Ian Neal, a solicitor at Hegarty & Co, (“Mr Neal”) were appointed as the (original) Rutland Trustees of the will trust, the Rutland Trust. In the events that have occurred, the defendants (“MKD” and “SHW”, together “the defendants”) consider themselves to be the present Rutland Trustees of the Rutland Trust.

For these purposes, the relevant provisions of the will are set out at Clause 9 and Clause 10. In particular Clause 9 provides:

“I GIVE to my Rutland Trustees all my share and interest in equity as beneficial tenant in common in the proceeds of sale and in the net rents and profits until sale of the freehold dwellinghouse and premises as Fairfield Lyndon Road Hambleton in the County of Rutland and all other (if any) my interest therein or all that my estate and interest in the dwelling which may be my main residence at the date of my death together with all garden land appurtenant thereto (hereinafter called “the Rutland Property”) upon the following trusts in accordance with the following provisions:-

(A)

My Rutland Trustees shall hold my interest in the Rutland Property upon trust for sale with full power to postpone the sale

(B)

Without prejudice to the trust for sale my Rutland Trustees shall allow my said wife [Vicki] to reside in the Rutland Property or any property which may from time to time be purchased in lieu thereof…

(G)

…the trusts hereof shall not benefit in any way from the effect of the reliefs and exemptions for inheritance tax purposes of which my wife’s free estate may be entitled and that any advantage of reliefs and exemptions shall not in any way accrue to the benefit of the trusts hereof.”

By clause 10 of the will the sum of £300,000 (“the Cash Sum”) was given to the Rutland Trustees to pay to Vicki the income from it for life and at Clause 10(C), a similar provision to 9(G) was included as to the benefit of reliefs and exemptions.

Following Vicki’s death, the net proceeds of sale of the Property, and the Cash Sum, were to be held by the Rutland Trustees upon the trusts in Clause 12 of the Will, i.e. for the claimants in equal shares absolutely.

The Rutland Trust was therefore a life interest trust to enable Vicki to continue to live in the Property during her lifetime and to provide her with income.