Inheritance Act Claims
When someone dies, their estate is generally distributed according to their Will or, where there is no valid Will, the rules of intestacy. However, there are circumstances where a person may believe that the provision made for them is not sufficient to meet their financial needs.
The Inheritance (Provision for Family and Dependants) Act 1975 provides a legal framework under which certain people may be able to make a claim for reasonable financial provision from an estate. These claims can arise where someone was financially dependent on the deceased or had a particular relationship with them.
Inheritance Act claims can be complex and highly sensitive, particularly where family members disagree about how an estate should be divided. The circumstances of the deceased, the claimant and the estate all need to be carefully considered.
Understanding Inheritance Act Claims
Inheritance Act claims may arise where someone believes that a deceased person’s Will, or the intestacy rules, has failed to make reasonable financial provision for them. Eligibility and the potential outcome of a claim depend on the claimant’s relationship with the deceased, their circumstances and the relevant legal requirements.
Claims for Financial Provision
Claims for Financial Provision
Claims for financial provision seek reasonable provision from a deceased person’s estate under the applicable legislation. The assessment may involve considering the claimant’s financial needs, the size of the estate, the deceased’s obligations and the circumstances of other beneficiaries.
Claims by Spouses and Partners
Spouses and certain partners may be eligible to claim where they believe the estate has not made reasonable financial provision for them. The nature of the relationship, financial arrangements, individual resources and other relevant circumstances may affect the claim.
Claims by Children
Children of the deceased may be eligible to bring a claim for financial provision, depending on their circumstances and the relevant statutory requirements. Factors such as their age, financial needs, dependency and relationship with the deceased may be relevant when assessing their position.
Claims by Dependants
Individuals who were financially maintained, wholly or partly, by the deceased may be eligible to seek provision from the estate in certain circumstances. Evidence of financial support, household expenses and other arrangements may help establish whether a claim can be brought.
Disputes About Estate Provision
Estate Provision Disputes
Estate provision disputes can arise when a person believes they should have received greater financial provision than the Will or intestacy rules provide. Resolving these disputes may involve considering the available estate assets, the claimant’s needs and the interests of other beneficiaries or potential claimants.
What the Court May Consider
When determining an Inheritance Act claim, the court may consider a range of factors prescribed by the legislation.
These can include the financial resources and needs of the claimant and beneficiaries, the obligations and responsibilities of the deceased towards the claimant and beneficiaries, the size and nature of the estate and other relevant circumstances.
The court may also consider matters such as the physical or mental disability of a person who is a beneficiary and other factors that may be relevant to the particular circumstances.
Because every estate is different, it is important to assess the specific facts rather than assuming that a particular outcome will apply.
Evidence and Supporting a Claim
Evidence can play an important role in an Inheritance Act claim.
A claimant may need to provide information about their income, expenditure, housing needs, assets, liabilities and other financial circumstances. Evidence concerning the relationship with the deceased and any financial support provided may also be relevant.
Information about the estate is equally important. This may include the value of property, savings, investments, pensions, business interests and other assets, together with any liabilities.
Careful preparation can help ensure that the relevant financial and personal circumstances are properly presented.
Responding to an Inheritance Act Claim
If you are an executor or beneficiary and someone brings an Inheritance Act claim against an estate, you may need to consider how the claim affects the administration and distribution of the estate.
An executor may need to take care before distributing assets where a potential claim has been raised. Beneficiaries may also need advice about their position and how a claim could affect their inheritance.
The appropriate response depends on the circumstances of the claim and the estate. Legal advice can help establish what steps should be taken and whether the matter may be capable of resolution without court proceedings.
Negotiation and Mediation
Inheritance disputes do not always have to be resolved through a contested court hearing.
Depending on the circumstances, negotiation or mediation may provide an opportunity for the parties to reach an agreement. This can sometimes help preserve family relationships and reduce the time and costs associated with litigation.
Mediation allows the parties to discuss their respective positions with the assistance of an independent mediator. Any agreement reached can then be considered in light of the legal position and the circumstances of the estate.
Where an agreement cannot be reached, court proceedings may be necessary.
Time Limits for Claims
When determining an Inheritance Act claim, the court may consider a range of factors prescribed by the legislation.
These can include the financial resources and needs of the claimant and beneficiaries, the obligations and responsibilities of the deceased towards the claimant and beneficiaries, the size and nature of the estate and other relevant circumstances.
The court may also consider matters such as the physical or mental disability of a person who is a beneficiary and other factors that may be relevant to the particular circumstances.
Because every estate is different, it is important to assess the specific facts rather than assuming that a particular outcome will apply.
Protecting the Estate
Executors have responsibilities when administering an estate, particularly where there may be potential claims against it.
Before distributing an estate, it can be important to establish whether any claims or disputes may affect the beneficiaries’ entitlement.
This is particularly relevant where the deceased’s family circumstances were complicated, where someone was financially dependent on them or where a potential claimant has raised concerns about the provision they have received.
Taking appropriate advice can help executors understand the potential risks and determine how to proceed with the administration.