Earlier this year, my colleagues, Natalia Angelini and Sydney Osmar, in Hull on Estates Podcast – 682 – Hermes and Adult Adoption, discussed the legal test and implications of adult adoption in Ontario. This topic arose from the news cycle involving Nicholas Puech, an 80-year-old billionaire, who was in the midst of a succession plan which included adopting his 51-year-old gardener.
This blog delves deeper into Nicholas’ succession plan.
Nicholas Puech, a resident of Switzerland, is a fifth-generation descendant of the founder of the French luxury brand, Hermès. According to Forbes, Nicholas’ current net worth is approximately $14.7 billion USD.
Nicholas has never been married, has no children and is estranged from most of his family.
In December of 2023, it was reported that Nicholas had begun the process to adopt his former gardener, whom he planned to leave at least half of his large fortune.
Interestingly, this conflicted with a contract that he had entered, in which he would bequeath his fortune to a foundation, which he had founded in 2011 and funded since. The contract provides that Nicholas would leave his shares in Hermès to the foundation, unless he became a father, in which case the child would be entitled to a part of Nicholas’ estate.
When the news broke, the foundation released a formal statement, which included:
“The Foundation is legally bound to its founder through a contract of inheritance signed before a notary in September 2011. … From a legal point of view, a unilateral cancellation of the contract of inheritance seems void and unfounded. The Foundation has therefore opposed the cancellation of the contract ….”.
In Switzerland, a testator can distribute at least a part of their estate via a will or an inheritance contract. However, with the case of an inheritance contract, any amendment is only possible with the consent of all contracting parties.
The concept of inheritance contracts is not present in Ontario. In Ontario, the power to dispose of one’s property by will is provided under section 2 of the Succession Law Reform Act. The Act also addresses circumstances in which a will can be revoked or altered by a testator.
As there does not appear to have been any updates regarding Nicholas’ succession plan since, it will definitely be interesting to see how this situation develops, including whether Nicholas is successful in his adoption and how it impacts his succession plan going forward.
Thanks for reading and stay tuned!
Megan
Sources
https://www.forbes.com/profile/nicolas-puech/?sh=70192cc86601
https://isocrates.org/wp-content/uploads/Statement-1er-decembre-EN.pdf