How Successful Are Inheritance Act Claims?

The Inheritance (Provision for Family and Dependants) Act 1975, often shortened to the Inheritance Act, is a key piece of legislation in England and Wales that allows specific individuals to challenge the distribution of an estate. When someone has not been reasonably provided for in a Will or under intestacy rules, the Act provides a legal route for making a claim.

Inheritance disputes can be emotionally challenging, involving complex family relationships and financial pressures. Many individuals wonder: How successful are Inheritance Act claims? This article explores the factors influencing success, key legal considerations, real-life examples, and practical advice for anyone considering making a claim.

What Is the Inheritance Act 1975?

The Inheritance Act enables eligible individuals to challenge a Will (or lack of a Will) if it does not make reasonable financial provision for them. It applies to both testate estates (where a Will exists) and intestate estates (where no valid Will is in place).

While the testator’s wishes are generally respected, the law recognises that in certain circumstances, fairness must prevail. This is particularly relevant where individuals are financially dependent on the deceased but were excluded or inadequately provided for.

It is important to note that the Inheritance Act only applies to estates in England and Wales. Scotland and Northern Ireland have separate legal frameworks for inheritance disputes.

Who Can Make an Inheritance Act Claim?

The Act limits claims to certain categories of individuals who had a meaningful relationship with the deceased or were financially dependent on them. Eligible individuals include:

  1. Spouses or Civil Partners: A current spouse or civil partner at the time of death.
  2. Cohabiting Partners: Someone who lived with the deceased for at least two years immediately before death as a spouse or civil partner.
  3. Former Spouses or Civil Partners: Former partners can claim, provided they have not remarried or entered into a new civil partnership.
  4. Children: This includes minor children, adult children, stepchildren, and adopted children.
  5. Children of the Family: Individuals treated as children of the deceased, even if not biologically related (e.g., stepchildren).
  6. Financial Dependents: Individuals who were financially supported by the deceased at the time of their death.

If you do not fall into one of these categories, you cannot make a claim under the Inheritance Act, regardless of the circumstances.

What Does the Court Consider When Deciding a Claim?

The success of an Inheritance Act claim depends on several factors. Each case is unique, and the court exercises wide discretion to ensure fairness. When deciding a claim, the court will assess the following:

  1. The Financial Needs and Resources of the Applicant: The claimant’s income, assets, debts, and future financial needs are considered.
  2. The Financial Needs and Resources of Beneficiaries: The court must balance the claimant’s needs with those of existing beneficiaries.
  3. The Deceased’s Obligations and Responsibilities: The extent to which the deceased had a duty to provide for the claimant.
  4. The Size and Nature of the Estate: A larger estate may allow for greater financial provision, while a smaller estate limits the options available.
  5. Any Physical or Mental Disabilities: The court takes into account any disabilities of the claimant or other beneficiaries that affect financial needs.
  6. The Conduct of the Claimant or Beneficiaries: Relevant conduct, such as financial irresponsibility or neglect, may influence the court’s decision.

The court’s priority is to ensure that reasonable financial provision is made for those who need it, while balancing the interests of all parties involved.

How Successful Are Inheritance Act Claims?

The success of an Inheritance Act claim depends on the merits of the case and the strength of the evidence presented. While some cases are clear-cut, others are complex and require careful judicial assessment.

Let’s consider two key cases that illustrate the range of outcomes:

Kaur v Singh

  • Facts: Mrs Kaur, the widow of the deceased, was completely left out of her husband’s Will. The estate was left entirely to the couple’s sons.
  • Outcome: The judge awarded Mrs Kaur half of the net estate. Key factors included:
    • The estate was built up during the marriage.
    • Mrs Kaur had fully contributed to the marriage over 66 years.
    • The “divorce cross-check test” showed she would have been entitled to half the estate in a divorce.
  • Lesson: In straightforward cases involving a surviving spouse, claims under the Inheritance Act are often successful.

Larsen v Annan

  • Facts: Two sons challenged their father’s Will after receiving only £10,000 each. The majority of the estate went to their sister. The deceased’s decision was influenced by the sons’ past behaviours (manslaughter and gambling).
  • Outcome:
    • One son’s claim was successful due to his disability, and he was awarded an additional £25,000 in a discretionary trust.
    • The other son’s claim was unsuccessful, as the court deemed the £10,000 sufficient.
  • Lesson: Success depends heavily on individual circumstances, such as financial need, disability, and conduct.

Time Limits for Inheritance Act Claims

If you intend to make a claim under the Inheritance Act, you must act quickly. The time limit for making a claim is 6 months from the date of the Grant of Representation (the legal document authorising estate administration).

  • Late Claims: In exceptional cases, the court may allow a claim beyond this period if justice requires it. However, this is rare and not guaranteed.
  • Advice: If you believe you have a claim, seek legal advice as soon as possible to avoid missing the deadline.

How Much Can Be Claimed?

The amount awarded under the Inheritance Act varies significantly between cases. The court has wide discretion to make an award that it deems fair and reasonable. Factors that influence the award include:

  • The size of the estate.
  • The financial needs of the claimant.
  • The financial situation of other beneficiaries.
  • The relationship between the claimant and the deceased.

Courts can make a range of orders, such as:

  • Lump sum payments.
  • Regular maintenance payments.
  • Transfer of property.

In most cases, the award will reflect the claimant’s reasonable financial needs, rather than granting a large portion of the estate.

What Are the Costs of Making an Inheritance Act Claim?

Inheritance disputes can be expensive, with legal costs quickly mounting. However, there are several funding options available to claimants:

  1. No Win, No Fee: Legal fees are only payable if the claim is successful.
  2. Pay at the End: Legal costs are deferred until the claim is resolved.
  3. Legal Insurance: Some claimants may have insurance that covers inheritance disputes.

It is worth noting that unsuccessful claims may result in the claimant paying the legal costs of the other parties. As such, careful consideration is essential before pursuing a claim.

Alternatives to Court

Court proceedings can be costly, stressful, and time-consuming. For this reason, it is often advisable to explore alternative solutions:

  1. Negotiation: Parties may reach an agreement without court intervention, saving time and money.
  2. Mediation: A neutral mediator helps parties resolve the dispute amicably.
  3. Settlement Agreements: A legally binding agreement can be drawn up to formalise any resolution.

Settling out of court is often the most practical and cost-effective option, especially where relationships need to be preserved.

How to Improve the Chances of Success

If you are considering an Inheritance Act claim, the following steps can improve your chances of success:

  1. Seek Legal Advice Early: Consult an experienced inheritance lawyer to assess the strength of your claim.
  2. Gather Evidence: Provide financial records, details of your relationship with the deceased, and evidence of dependency.
  3. Act Quickly: File your claim within the 6-month time limit.
  4. Consider Alternative Dispute Resolution: Attempt negotiation or mediation before pursuing court proceedings.
  5. Be Realistic: Understand that awards are based on “reasonable financial provision”, not necessarily what you feel entitled to.

Conclusion

Claims under the Inheritance Act 1975 can be successful, but the outcome depends on the unique facts of each case. Courts carefully balance the financial needs of the claimant against the interests of other beneficiaries and the overall size of the estate.

While clear-cut cases, such as those involving spouses or financially dependent individuals, are more likely to succeed, claims involving adult children or estranged family members can be more complex.

If you believe you have not been reasonably provided for, seeking early legal advice is essential. Remember that while claims can be expensive, alternative options like negotiation and mediation can help resolve disputes amicably and cost-effectively.

Ultimately, success in an Inheritance Act claim lies in presenting a strong case supported by evidence, acting within the required time frame, and understanding the court’s emphasis on fairness and financial need.

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