23rd July, 2025
In estate planning, what you put in writing matters – but so do the promises you make.
The 2024 High Court case of Kramer v Stone is a powerful reminder that verbal promises, especially those made about inheritance, can carry serious legal weight. Even when they aren’t in a Will, such promises may be enforced through a legal principle called estoppel.
What Is Estoppel?
Estoppel is a legal rule that stops someone from going back on a promise if:
- The promise was clearly made;
- Another person relied on it;
- That person would suffer a loss if the promise isn’t honoured.
There are different types of estoppels, but two are most relevant when it comes to estate planning:
- Equitable estoppel occurs when someone makes a promise about future rights or property, and another person acts on it. For example, if a parent promises a child a house, and the child relies on that promise, the parent may be stopped from denying it later – even if it’s not written down.
- Estoppel by deed happens when a person signs a deed promising property or rights – sometimes even property they don’t yet legally own. Once the deed is signed, they usually can’t deny that promise, protecting the person relying on it.
Both types of estoppels help prevent unfair outcomes and protect those who honestly trust and act on promises.
What Happened in Kramer v Stone?
David Stone was a farmer who had worked under a sharefarming agreement on Dame Leonie Kramer’s property. She told him he would inherit the farm when she passed away. Based on that, Mr Stone stayed for more than 20 years, worked hard, and didn’t take better-paying jobs elsewhere.
Despite her promise, Dame Leonie’s Will gave the farm to someone else when she died. He then went to court to argue that the promise should still be honoured – and the court agreed.
What Did the Court Decide?
The High Court of Australia found that:
- There was a clear and serious promise.
- Mr Stone had relied on it reasonably.
- He suffered disadvantage because of that reliance.
- It would be unfair not to uphold the promise now.
The court said Dame Leonie didn’t need to keep encouraging him over the years. Nor did she need to know all the details of how he relied on her words. The fact that she made the promise, and that he changed his life because of it, was enough.
Why Does This Matter for Estate Planning?
This case shows that estate planning isn’t just about what’s written in a Will. It’s also about:
- What’s said and promised during life.
- How others rely on those promises.
- Whether those actions result in real sacrifice or loss.
If you’ve made or relied on informal promises, you could end up in a legal dispute. In many cases, courts will enforce those promises, even if they conflict with what is written in a Will.
Read the full decision here.
How to Avoid Problems Later
To reduce risk and confusion, it’s important to:
- Be careful about making promises regarding property or inheritance
- Ensure all gifts or transfers are clearly documented
- Make sure your will matches your intentions
- Get legal advice before making significant decisions
How We Can Help
At Castrikum Adams Legal, we help families and individuals create strong, fair estate plans. We work to prevent disputes by aligning your documents, intentions, and any past commitments. Whether you’re drafting a Will or sorting out family agreements, we’re here to guide you through.
📞 Contact us today on 66871167 to protect your wishes and avoid legal surprises later.
The content of this Blog does not constitute legal advice, is not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any specific matters you or your organisation may have.