Let’s set the scene. An £18 million estate. A civil partnership signed weeks before death. Three elderly siblings. One inheriting partner. And a pile of Maltese property, Mayfair real estate, and Herbalife shares.
Cue EastEnders drums.
The late Alan Lorenz—former Herbalife executive, millionaire, and determined tax avoider—left behind a will, a civil partner, and a whole lot of questions. Now, thanks to a dramatic Court of Appeal ruling, his siblings are back in the game, seeking their alleged half of the estate.
So what went wrong? And more importantly, what can we learn from it?
💼 The Case in a Nutshell
Lorenz died in 2021, shortly after entering a civil partnership with his long-time partner, Sheila Caruana. He left everything to her—lock, stock, and £18 million barrel. But his siblings claimed he had always intended for Sheila to share the estate 50/50 with them.
The catch? That “instruction” was never properly documented.
Cue legal limbo, speculation about “secret trusts,” and enough legal fees to sink a small yacht.
The High Court originally sided with Caruana, ruling there wasn’t enough proof of a binding obligation to the siblings. But the Court of Appeal has now reinstated the claim, flagging compelling evidence that Lorenz did intend to provide for his family—just not in writing (so HMRC wouldn’t “catch wind,” allegedly).
⚖️ What’s a Secret Trust Anyway?
This case pivots on the idea of a secret trust—an agreement where someone inherits an estate formally but is expected to pass some or all of it on to others, based on the deceased’s unwritten wishes.
Think: “You get everything… but you know what to do.”
The problem? Courts hate vagueness. So if you’re trying to execute your multi-million-pound legacy on a wink and a handshake, don’t be surprised when lawyers and judges start sniffing around.
📚 The Takeaways for the Rest of Us
Here’s what this all means for anyone with a substantial estate—or frankly, anyone who doesn’t want their family reenacting Succession at the wake.
1. If You Want It Done, Write It Down
Lorenz was quoted as saying he didn’t want to put it in writing. That’s like building a mansion without a foundation and hoping gravity takes a day off.
Your intentions mean nothing if they’re not legally documented. If you want someone to inherit—and then gift to others—spell it out clearly in your will or via a legally recognised trust structure. Anything less is guesswork… and fuel for litigation.
2. Don’t Assume They’ll “Do the Right Thing”
“Sheila knows what to do.” Famous last words.
Verbal promises or vague understandings don’t cut it, especially when we’re talking millions. Trusts exist to enforce your wishes. Hoping someone will voluntarily give away half of a Mayfair townhouse? That’s optimism bordering on fantasy.
3. Estate Planning ≠ Tax Dodging
Lorenz had a well-documented aversion to tax. We get it—nobody likes giving up 40% to the taxman. But there’s a razor-thin line between planning and playing with fire.
Effective estate planning should aim to reduce tax legally—not hide intentions in secret side deals that crumble in court. The more “creative” your arrangements, the more likely they’ll be challenged… often successfully.
4. Civil Partnerships Have Big Legal Weight
One very modern twist: Lorenz and Caruana entered into a civil partnership just weeks before his death. That’s not just romantic timing—it’s a major legal and tax event.
Civil partnerships (like marriages) confer full spousal inheritance rights, including exemption from Inheritance Tax. So while it may have been a tax strategy, it also complicated matters for the siblings, who now have to argue against a fully legal partner with a valid will.
5. When There’s Big Money, Expect a Big Fight
A lesson as old as money itself: when the estate’s large, and the instructions are vague, someone is going to lawyer up.
And in this case, the Court of Appeal believes there’s enough smoke to look for fire. Which means a full-blown High Court trial unless the parties settle beforehand. Cue another round of legal chess… and potentially, more legal costs than a minor royal wedding.
🚨 Don’t Let This Be You
If you’ve got a significant estate—or if you’re advising someone who does—don’t leave things to chance. Secret trusts, handshake deals, and tax-dodging schemes may sound clever on paper, but they rarely survive the courtroom.
At GP Norgate, we believe estate planning should be strategic, watertight, and drama-proof. Want to make sure your wishes are honoured without a family feud or HMRC investigation? Let’s talk. We’ll help you protect your legacy with clarity, integrity, and a healthy respect for the rulebook.
After all, the goal is to leave a legacy—not a legal mess.
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