Keating v Withy King Trustees Ltd & Anor

Facts

Caroline Brown died on 1 September 2021, leaving an estate of about £15,000,000 to her four children in equal shares. Significant tax liabilities were known from the outset, but proved greater than anticipated and are currently estimated at around £8,000,000. On 13 November 2023, when the liabilities were thought to be about £7,000,000, the four children reached a settlement agreement distributing £2,500,000 to each child, made up of various properties with balancing cash adjustments; the agreement expressly provided for a clawback in respect of inheritance tax and anticipated that one would likely be needed. The four children were then the named executors, the estate being administered under a power of attorney granted to a solicitor, Nia Wharry. Ms Keating received assets to the net value of £2,500,000, including 44 and 44A Dukes Avenue. On 13 February 2025, on the application of Ms Keating's sister Monica, Master McQuail removed the executors and Ms Wharry and appointed Withy King Trustees Ltd as administrators. After Withy King indicated a shortfall requiring repayment by the beneficiaries, transactions placed the properties in Ms Keating's company, Brown Keating Holdings Ltd, and charged them to NatWest for £539,400, paid to Ms Keating. Trower J granted an interim injunction on 24 July 2025, satisfied there was a risk of dissipation. Ms Keating applied on 27 April 2026 to vary it so as to permit marketing and sale.