Irrevocable agreement

Charles and others v Fraser [2010] EWHC 2154 (Ch); [2010] All ER (D) 68 (Aug); SJ 17 August p30

Two sisters had entered into an irrevocable agreement that the first sister to die would inherit the estate of the other, and the cumulative estates would pass to 15 specific individuals in various shares on the death of the survival. Despite the surviving sister having made a later will leaving her estate to a sole beneficiary, her estate fell to be distributed in accordance with the earlier mutual wills, and the beneficiary under the later will therefore held the proceeds of the estate on trust to be distributed in accordance with the terms of the earlier wills. In the event of any beneficiary having predeceased the surviving sister, their share would lapse and be taken by the remaining residuary legatees whose shares will be increased proportionately.