Ahmad & Ors v Akhtar

Where an intestate leaves no issue or parents but a surviving spouse, the residuary estate is divided after the spouse’s statutory prior entitlement. One half is held for the spouse absolutely and the other half on statutory trusts for the intestate’s whole-blood siblings. A sole legal owner is prima facie the absolute beneficial owner. A person claiming a beneficial interest bears the burden of proving that the legal owner held the asset on trust. A failure to provide evidence supporting that claim means the claim fails.

The claim concerned the estate of Zafar Ahmad, who died intestate without issue or surviving parents. The claimants were his surviving siblings, and the defendant was his widow and administratrix.

The disputed assets were a freehold property and bank and building society accounts standing in the deceased’s sole name. The defendant claimed a beneficial half share in those assets. She failed to comply with orders requiring evidence and disclosure, and the issues were directed to be tried on the claimants’ evidence alone. The central questions were whether the assets were jointly owned beneficially or belonged solely to the deceased.

1. Statutory entitlement. Under sections 46 and 47 of the Administration of Estates Act 1925, where an intestate leaves no issue or parent but a surviving spouse, the residuary estate is divided after the spouse’s prior entitlement to personal chattels and £200,000. One half is held for the spouse absolutely and the other half on statutory trusts for the whole-blood brothers and sisters.
2. Beneficial ownership. A person who is the sole legal owner of property is prima facie its absolute beneficial owner. The person asserting a beneficial interest must prove that the legal owner held the property on trust.
3. Application. The property and the sums in the Barclays Bank and Chelsea Building Society accounts stood in the deceased’s sole name. The defendant produced no evidence or documents establishing that he held any of those assets, or any share in them, on trust for her. She therefore failed to discharge the burden of proof.
4. Disposition. The claimants were entitled to a declaration that the disputed assets were the sole property of the deceased.

First instance decision. No appellate history is stated in the judgment.