Disputes over the distribution of an estate after someone has died, also known as contentious probate, are becoming more common. Second marriages, blended families and stepchildren, long-term cohabiting partners, and informal caring arrangements are more common than they were a generation ago. These more complex family dynamics are, in part, adding to an increasing number of inheritance act claims.
In a previous blog, we looked at the grounds for contesting a Will and who is eligible to make a claim. In follow-up, our contentious probate team takes a close look at one of those reasons in more detail, ‘reasonable financial provision’ under the Inheritance (Provision for Family and Dependants) Act 1975.
What is the Inheritance Act 1975?
The Inheritance (Provision for Family and Dependants) Act 1975 gives certain people the right to ask the court to step in if they believe they have not been left reasonable financial provision. This could be in an existing Will, or, if there is no Will, under the rules of intestacy.
In England and Wales, there is no forced heirship system, meaning you are generally free to leave your estate to whoever you choose. You can leave everything to a charity, a friend or carer, or exclude family members entirely.
However, if someone who depended on you, or who falls within one of the categories set out in the Act, has not been provided for (intentionally or not), the court has the power to change how the estate is distributed. There are two main situations where an Inheritance Act Claim can arise:
- When there is no valid Will, and the intestacy rules apply
- There is a valid Will, but it does not make reasonable provision for someone eligible to claim
Who Can Claim Under the Inheritance Act 1975?
Similar to rules surrounding who can contest a Will, only certain people are eligible to make a claim under the Inheritance Act. These individuals include:
- A spouse or civil partner
- A former spouse or civil partner (provided they have not remarried or entered into a new civil partnership)
- Someone who lived with the deceased as a partner for at least two years immediately before their death
- A child of the deceased
- A person treated as a child of the family, such as a stepchild
- Anyone who was being financially maintained by the deceased at the time of death
Maintenance usually means proof of regular financial support rather than the occasional gift or financial contribution.
It is also worth confirming that there is no such thing as “common law marriage”. If you are not married or in a civil partnership, even if you have been together for decades, you do not automatically inherit under the intestacy rules if your partner dies without a Will. However, some cohabiting partners may still be able to bring a claim under the Act.
Sometimes people also mention promises that were made during the deceased’s lifetime, for example, a promise that a property or piece of land would be left to them. Where someone has relied on that promise to their detriment, a different type of claim (known as proprietary estoppel) may arise. Please read our article: ‘Inheritance Claims Based on a Promise – What Is Proprietary Estoppel?’ for further information.
Is There a Time Limit to Make a Claim?
Yes, in most cases, there are strict time limits. Under section 4 of the 1975 Act, claims for reasonable financial provision must be made within six months from the date of the Grant of Probate (or Letters of Administration). After the six-month time limit expires, a claim can only be made in certain circumstances and with permission from the court. Typically, the court expects claims to be made within the required time limits, and there is no guarantee that extra time will be granted. If you are considering making a claim, early advice and action are highly recommended.
What Does “Reasonable Financial Provision” Mean?
Reasonable financial provision is the key question in any Inheritance Act claim. For spouses and civil partners, the court sometimes applies the “deemed divorce” approach. In these cases, the court considers what would be reasonable in all circumstances, not just what is needed for day-to-day maintenance, much as finances or assets might be considered on divorce. For other people making a claim, the matter is more limited, focused solely on what is deemed reasonable for their maintenance. For example, the court can look at a range of factors, including:
- The financial position and future needs of the person bringing the claim
- The financial circumstances of other beneficiaries
- The size and nature of the estate
- Any disabilities affecting those involved
- The overall circumstances of the case
No two cases or individuals’ circumstances are the same. The court’s role is to balance the competing needs of the beneficiaries and those making a claim, and reach a fair outcome based on the facts.
Will an Inheritance Act Claim Have to Go to Court?
Not always, and that should be the aim. Inheritance Act Claims can be resolved through Alternative Dispute Resolution (ADR) methods such as negotiation or mediation. Courts actively encourage parties to try to settle disputes without a final hearing, particularly when family relationships are involved.
However, if ADR is unsuccessful and an agreement cannot be reached, court proceedings may be necessary.
Contentious Probate Claims
Inheritance Act claims can be complex, so specialist advice is important whether you are bringing a claim or defending one. At Bowsers Solicitors, our contentious probate team will always aim to resolve your dispute using ADR methods, but, where needed, can provide the guidance you need to take your matter to court.
We have considerable expertise in resolving Inheritance Act disputes relating to Wills and lack of financial provision, and we have represented a diverse range of clients, including beneficiaries, families, and individuals. In addition, we can assist in defending against challenges to a Will or the distribution of assets.
If you are looking for contentious probate advice, please contact our experienced lawyers and chartered legal executives today on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk.
Alternatively, you can fill in our contact form.
