If you have not received reasonable financial provision following the death of a loved one or an individual that you were dependent on, then you may be able to claim compensation through the Inheritance (Provision for Family and Dependants) Act 1975.
You might have unexpectedly lost a loved one without a will being created prior to their death. Alternatively, you may have been named in a will but have not received an adequate amount. Regardless of the situation, a claim under the Inheritance Act can help you secure a fair share of the deceased’s assets and wealth that better represents your relationship with them.
At Brown Turner Ross, our Wills, Trusts and Probate team can advise you on whether you would be eligible for an inheritance claim and guide you through the process of proving that you should be in receipt of reasonable financial provisions.
What is the Inheritance Act?
The Inheritance (Provisions and Dependants) Act 1975 allows specific individuals to claim a portion of a deceased individual’s estate in cases where no will exists, they have been omitted from a will, or if they did not receive a fair share of the estate.
This law protects dependents who have experienced an unexpected loss and may not be able to maintain their current standard of living. This may be because they have been left out of the will, a will hasn’t been drafted, or they simply have not been awarded sufficient money to achieve financial security.
The existence of this law not only provides additional protection for dependents but also highlights the importance of ensuring that you draft a will as soon as it is necessary to do so. If you have children or dependents of any kind, it is always recommended to work with a solicitor to draft a will.
It is important to note that not everyone can claim under this law, and specific criteria must be met before a claim can be made.
What is an Inheritance Tax Claim?
Before we discuss successful inheritance claims or how to defend inheritance act claims, it is essential first to understand what an Inheritance tax claim is and how it may impact involved parties.
An Inheritance Act claim, also referred to as a Family Provision claim, allows specific individuals who were financially dependent on the deceased to request reasonable financial support from the estate in cases where the will or intestacy laws do not sufficiently provide for them.
Who Can Claim Under the Inheritance Act 1975?
The Inheritance Act defines the classes of applicants who may bring a claim forward. Those who can file inheritance act claims include;
- The spouse or civil partner of the deceased.
- An unmarried former spouse or civil partner of the deceased (a claim can not be made if they have entered into a new marriage or civil partnership.
- Anyone who was living with the deceased for the two years before the death.
- A child of the deceased.
- A person who was classified as a child of the family by the deceased.
- Any other people who were financially maintained by the deceased prior to their death.
If you fall under the criteria above, you may be eligible to claim under the Inheritance Act 1975.
How to Claim Inheritance
If you fall under the above eligibility, have recently lost a loved one and feel as though you have not been appropriately compensated after their death, you may wish to claim inheritance.
Before starting any claim, it is recommended that you work with an experienced solicitor who can advise you through the process. Your legal representative will help you collate any evidence proving you are eligible to claim a portion of the deceased’s estate. The solicitor will also outline a sum that you feel you deserve.
It is also important to note that you have a time frame of six months to make a claim, so it will be in your best interest to contact a solicitor as soon as possible.
If the active beneficiaries of the estate disagree with your claim, you may proceed to court. However, it often works out much more favourably for both parties if a settlement is reached outside of court through mediation.
How Inheritance Law in the UK Works
When an individual dies with a will in place, the ownership of their estate is passed on according to the deceased’s wishes as specified in the will.
If someone passes away without a will, their estate is distributed according to intestacy laws. Typically, this means the estate will be allocated to their spouse or civil partner or to their nearest living relative.
In cases where no known relative or partner exists, the estate is then passed to the Crown and defined as ownerless property. The Inheritance Act allows those who believe they are entitled to a share of the deceased’s estate to claim their money.
What are the Factors of the Inheritance Act?
When someone makes a claim under the Act, the court will consider the following factors to determine whether to make an award and the proposed award amount.
Financial Needs and Resources of the Applicant
The court will examine the applicant’s current financial situation, taking into consideration their income, savings, property, and debts. They will assess their current financial standing and consider their future financial prospects.
The court will also consider their day-to-day needs, such as their rent or mortgage payments, to determine whether or not they require financial support.
This will also be considered if someone is already providing them with financial support from another source. If it is found that someone has limited earnings and the death may impact their standard of living, the court may be more likely to grant an award.
Obligations and Responsibilities of the Deceased
Another factor considered is any moral or legal duty the deceased had towards the applicant and other claimants.
For example, if the deceased had previously paid their rent or supported the applicant financially, they may be eligible for a state award.
If there is a special relationship between the deceased and the claimant, this may also be considered. For example, if the claimant was an estranged child of the deceased and they were not mentioned in the will, the court may decide that they had a moral obligation to provide financial support.
Size and Nature of the Estate
The size and nature of the estate are other factors that the court considers when deciding whether or not a claimant will be financially compensated.
They look at the estate’s value, including any property and savings that the deceased might have. The estate’s value can help them decide whether or not there are enough funds to cover the claim without unfairly impacting the other dependents.
If the estate is small, the court may not agree to grant the claim, which is, unfortunately, a common occurrence that leads to unsuccessful Inheritance Act claims.
Physical or Mental Disability
Physical and mental disability can also play a huge role in determining whether or not someone will achieve a successful claim.
If an applicant has a disability, the court will consider the applicant’s disability if it impacts their ability to earn a living or if they require additional care and support that incurs costs.
Due to the additional support they require, it is not uncommon for applicants with severe disabilities to achieve a successful Inheritance Act claim.
Inheritance Act Awards
A common misconception is that the Inheritance Act awards always come as a lump sum, which is not the case. If someone brings a successful claim under the Inheritance Act 1975, they may receive the following:
- A lump sum of money.
- A transfer of property.
- A regular income from the estate.
- A life interest in part of the estate.
The courts will assess each individual case to see which is the most suitable solution for the applicant.
How to Defend an Inheritance Act Claim
If you are a beneficiary of an inheritance and receive a claim against you regarding that inheritance, you should seek immediate legal advice and be prepared to cooperate by sending any relevant documents you have that contain information about the deceased’s estate.
Mediation may be recommended if the claimant has a relevant claim to the deceased’s estate, especially if the parties involved are family members. This can help reduce any conflict within the family and also reduce court fees.
How Successful are Inheritance Act Defences?
If you can accurately prove that the claimant has no right to financial provision from a deceased individual’s estate, then it is possible to defend an Inheritance Act claim.
The simplest defence for an Inheritance Act claim or for a contentious probate claim is one where you can prove that the claimant does not meet the eligibility criteria for making an Inheritance Act claim. However, it is unlikely to be as straightforward as this.
To defend against a claim, you must be able to prove that the deceased had no lasting responsibilities to the claimant and that the claimant does not require immediate maintenance, nor will need it in the future.
Is There a Time Limit on Claiming an Inheritance?
You have six months from the grant of probate to issue your Inheritance Act claim to the court.
It may be feasible to submit an inheritance claim beyond the six-month limit; however, you will require the express permission of the court and must justify the tardiness of your claim.
To avoid complications, it is recommended that you claim your inheritance as fast as possible. We will always suggest working alongside probate specialists, as they will not only advise you on claiming your inheritance but can also help you calculate any inheritance tax that you may be expected to pay on assets.
What is The Standard Court Fee For Inheritance Act Claims?
Something that you may need to take into consideration when putting in a claim is the court fees for inheritance claims. There are many factors that may influence your overall costs, and civil court fees can reach anywhere up to £10,000, which is why it is recommended to come to an agreement outside of court.
If the claim goes to trial, you will also need to pay a hearing fee, which can be up to £1,175; this does not even take into account solicitor’s fees, which differ from firm to firm.
Are Pension Subject to the Inheritance Act 1975?
As pensions are not automatically classed as part of an individual’s estate, it can be difficult to ascertain what type of pension an individual has or what they have instructed their pension provider to do with their retirement from the outside.
We advise that you seek legal advice if you believe that you may have a claim to a family member’s pension as part of your inheritance.
If you want to work with Brown Turner Ross for specialist probate advice, take a look at our website to find out more about our usual pricing strategy.
Can a Freezing Order Act on an Inheritance?
A freezing order is applicable to all of your assets exceeding a predetermined value, including any inheritance you may possess. It is always recommended that you seek advice from a solicitor to determine this value.
Can Grandchildren Claim Under the Inheritance Act?
A grandchild can only claim under the Inheritance Act if their parent died either before the individual whose inheritance is in question or before the grandchild turned 18.
Take Legal Advice With Brown Turner Ross
Through this blog, we hope to have provided you with the necessary information to form a better understanding of how to claim under the Inheritance Act and what this process entails.
If you are a claimant or you are looking for support to defend against a claim and you need legal representation, get in touch with the team at Brown Turner Ross today.