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Declarations of trust signed shortly before an entrepreneur’s death were ‘sham’, the High Court has held in a decision with implications for solicitors and independent administrators
Teixeira v Moaven and others [2026] EWHC 1215 (Ch) concerned the estate of Abbas Moaven, who died of liver cancer in 2012 aged 44 years. The dispute centred on whether four London properties legally owned by Abbas actually belonged beneficially to him alone, or were held on trust in equal thirds for him, his brother Amir Moaven and their mother Shokouh Nazemi, who died in 2023.
Shortly before his death, while in hospital, Abbas signed declarations of trust confirming the four properties were to be held on trust for the three parties. Abbas’ widow, Gabriela Teixeira, successfully challenged the validity of the declarations, arguing they were a ‘sham’ and had no legal or equitable effect. Consequently, the properties fall within her late husband’s estate.
Thomas Middlehurst, partner at Ashfords (pictured), who acted for third parties in the case, said: ‘The decision is particularly significant because of what it says about the role of independent administrators.
‘The court recognised that personal representatives will often be expected to remain neutral where competing beneficiaries or alleged owners are fighting over an asset. However, the judgment makes clear that neutrality is not a rule to be followed mechanically.
‘For solicitor firms acting as independent administrators, the practical message is that the appointment is not a passive one. Administrators must get in and protect the estate. If there is credible evidence that estate assets have been wrongly diverted, concealed or placed beyond the estate through questionable documentation, simply standing aside may not be enough. The court expressly accepted that the administrators in this case could not be criticised for deciding that active involvement was appropriate and observed that it would very arguably have been wrong for them not to take and advance a view.
‘The judgment provides helpful support for professional administrators who, after careful analysis, conclude that the estate’s interests require them to pursue clarity, challenge suspect arrangements and support the recovery of assets for the benefit of those entitled to the estate.’
