Understanding Inheritance Claims under the Inheritance Act 1975

Understanding Inheritance Claims under the Inheritance (Provision for Family and Dependants) Act 1975

In the UK, unlike many other European countries, individuals have testamentary freedom.  This means that you can choose to not leave provision for your spouse or children.

However, in some circumstances, the law allows certain family members and dependants to ask the Court for financial provision from the estate under the Inheritance (Provision for Family and Dependants) Act 1975. 

Who Can Make a Claim?

The Act allows certain categories of people to apply to the Court. These can include a spouse or civil partner, a former spouse, children, cohabitees or anyone financially dependant upon the deceased.

Being in the category of potential claimants does not automatically guarantee a successful claim and it must be proved that the individual challenging the estate was not left reasonable provision.

What Does “Reasonable Provision” Mean?

For a spouse or civil partner, the Court generally has a wider approach to what may be reasonable. For other applicants, the question is usually whether the estate provides what is reasonably required for their maintenance.

The Court Will consider matters such as the applicant's financial resources and needs, the financial position and needs of other beneficiaries, the size and nature of the estate, the deceased's obligations and responsibilities, and the conduct of those involved.

What Can the Court Order?

If the Court decides that reasonable financial provision has not been made, they can alter how the estate is distributed.  This can include allocating assets to the applicant, a one off payment from an estate or regular maintenance payments.

How do I Prevent a Claim Against my Estate?

It is not possible to completely prevent someone bringing a claim but the risk can be mitigated:  

• Use a Solicitor to draft your Will.  A Solicitor Will be able to offer tailored advice as to your circumstances and their file Will document details of your circumstances and wishes, which can be crucial evidence that the Will was done of your own free Will and without coercion. 
• Make a statement of reasons to be kept with your original Will.  Include your reasons for excluding any family members as well as the positive reasons you are choosing to leave provision for your chosen beneficiaries.
• Incorporate a no contest clause within your Will.  Whilst a no contest clause is not always enforceable, the threat of losing what benefit is being left under a Will is often enough to deter a challenge against an estate.