The Secret Will of Lucian Freud

The life of 20th Century artist Lucian Freud seems to have been as colourful in reality as it was on canvas, with the resultant issues concerning his estate continuing long after his death in 2011.

The grandson of Sigmund Freud and brother of writer and politician Clement Freud, Lucian moved to the UK from Germany in 1933 and became a British subject in 1939. Freud was known for his unusual painting subjects and somewhat unconventional lifestyle. He is known to have fathered fourteen children, two to his first marriage, and 12 to his various mistresses, although there have been rumours that he fathered many more.

In view of his wealth and rather complicated personal life you might assume Freud took great care in organising what would happen to his substantial estate on his death (it is thought that his estate amounted to in the region of £96 million) and, after payment of inheritance tax and a number of specific cash gifts in his Will, the balance was left to a ‘Secret Will Trust’.

A Secret Will Trust is created when the person who makes a Will (the Testator) leaves his estate (or a part of his estate) in his Will to someone (whom I will refer to as the Recipient) and then communicates to the Recipient his express wishes as to who is to benefit and in what share. So from the face of the Will it may appear that the Recipient is to benefit, but who actually benefits is a closely kept secret between the Testator and the Recipient. The Secret Will Trust is only valid if the Testator tells the Recipient who is to benefit during his lifetime and there is evidence available to support this happening. Freud did precisely this. He left the biggest proportion of his estate to his eldest daughter Rose Pearce and his solicitor Diana Rawstron. They then subsequently disclosed that they were to hold the remainder of the estate under the terms of a Secret Will Trust for others.

Given the size of the estate and the dynamics in Freud’s personal life perhaps it is not so surprising that a claim then ensued. One of Freud’s sons Paul McAdam Freud claimed that the Will was not valid. Fortunately for the Executors of Freud’s estate Judge Richard Spearman QC upheld the validity of the Will and the Secret Will Trust. If McAdam had been successful then the secret part of the Will would have failed and the majority of the estate would have been divided under the Intestacy Rules equally between Freud’s children, including McAdam.

Given the uncertainties about the number of children Freud could have potentially fathered and possible paternity issues, if the Will had failed then this could have created further problems for the estate. In practise we rarely come across Secret Will Trusts, and in most circumstances, we advise against it. They inevitably cause suspicion, animosity and upset, which is something that most Testators would want to avoid. T

hey also carry the risk of legal challenge. Not only could a beneficiary claim the Will was not valid, as McAdam did, they may also claim that reasonable financial provision had not been made for them under the Inheritance (Provision for Family & Dependents) Act 1975. That said, with the complexities of some family dynamics the Secret Will Trust may be a suitable solution for some.

For more information about Wills, Probate and Inheritance contact Katie Swift at Wilkinson Woodward on 01422 339600.