The old estate Illugastadir on the Vatnsnes Peninsula is a historic place. It was the stage of a double murder tragedy in the early 19^th century when two men were killed in a fire started by a young couple on March 13^th, 1828. The two unfortunate, young people who killed the two men, stole all valuables, and set the fire to hide their tracks, were members of a larger group of enemies of the proprietor of the farm. After the misdeed, they were caught and sentenced to death and beheaded in the so-called Three Mound Area of the Lake Valley in 1830. This turned out to be the last execution carried out in Iceland.

Capital punishment was abolished after that, the axe, and the block are preserved in the National Museum of Iceland. Much has been written about this unfortunate incident and shortly before the turn of the 20^th century, the first film about it was made.
Hvammstangi