When a loved one passes away, the last thing you want to worry about is whether you’ve been fairly provided for in their Will. However, sometimes the distribution of an estate doesn’t meet everyone’s needs or expectations. This is where the Inheritance (Provision for Family and Dependants) Act 1975, commonly known as the Inheritance Act 1975, comes into play. This article will guide you through the ins and outs of this important legislation, helping you understand your rights and options.
What is the Inheritance Act 1975?
The Inheritance Act 1975 is a piece of legislation that allows certain categories of people to claim for reasonable financial provision from a deceased person’s estate. It applies to individuals who died while domiciled in England and Wales.
This Act serves as a safety net, ensuring that those who were financially dependent on the deceased aren’t left in a difficult situation. It can be particularly useful if you’ve been left out of a Will, aren’t inheriting under intestacy rules, or feel that your inheritance is insufficient for your needs.
Who Can Make a Claim?
You might be eligible to make a claim under the Inheritance Act 1975 if you fall into one of these categories:
1. Spouse or civil partner of the deceased
2. Former spouse or civil partner (if not remarried)
3. Child of the deceased (including adult children)
4. Cohabitee (living with the deceased for at least 2 years before their death)
5. Anyone financially maintained by the deceased
For example, let’s say Sarah lived with her partner John for 20 years, but they never married. If John dies without leaving anything to Sarah in his Will, she could potentially make a claim under the Act as a cohabitee.
What’s the Time Limit for Making a Claim?
You must typically file your claim within 6 months of the grant of representation being issued. This is an important document that gives the executor or administrator the authority to manage the deceased’s estate.
While the court can sometimes extend this time limit, it’s best not to rely on this. If you think you might have a claim, it’s crucial to seek legal advice promptly.
What Do You Need to Prove?
The core of your claim will be proving that the current distribution of the estate doesn’t provide you with “reasonable financial provision”. But what does this mean?
For most claimants, it refers to what’s reasonable for your maintenance. However, if you’re a spouse or civil partner, the interpretation is broader and isn’t limited to just maintenance.
Let’s look at an example. Tom’s father died, leaving everything to Tom’s stepmother. Tom, an adult with a disability that prevents him from working, might have a claim if he can show that his father’s Will doesn’t make reasonable provision for his maintenance needs.
What Factors Does the Court Consider?
When assessing a claim, the court looks at various factors, including:
1. Financial needs and resources of all parties involved
2. Any obligations the deceased had towards the claimant
3. The size and nature of the estate
4. Any physical or mental disability of the claimant or beneficiaries
5. Other relevant conduct or circumstances
For spouses and civil partners, the court also considers the “deemed divorce” test. This asks: what would the claimant have received if the relationship had ended in divorce rather than death?
For child claimants, the court will also look at any education or training needs.
What Orders Can the Court Make?
If the court decides in your favor, it has several options:
1. Periodic payments from the estate
2. Lump sum payments
3. Transfer of specific property to you
The court can make orders against the ‘net estate’, which includes not just assets in the Will, but also jointly owned property in some cases.
Challenges and Considerations
While the Inheritance Act 1975 can be a useful tool, it’s important to be aware of potential challenges:
1. Claims can be costly and time-consuming
2. They may cause family rifts
3. The outcome is never guaranteed
It’s also worth noting that if someone intentionally excludes you from their Will, they may take steps to make a claim more difficult. This is why clear communication about intentions during a person’s lifetime can be so valuable.
How to Start a Claim
If you believe you have a valid claim under the Inheritance Act 1975, here are the basic steps:
1. Seek legal advice as soon as possible
2. Gather evidence of your financial situation and needs
3. Try to negotiate with the executors or beneficiaries
4. If negotiation fails, file a claim with the court within the time limit
The Takeaway
The Inheritance Act 1975 provides an important safeguard for those who may have been overlooked or inadequately provided for after a loved one’s death. While it can’t solve every inheritance dispute, it offers a legal avenue for those in genuine need.
Remember, each case is unique, and the outcome depends on individual circumstances. If you’re considering making a claim or want to protect your estate against potential claims, it’s crucial to seek professional legal advice.
Glossary:
– Domicile: The country that a person treats as their permanent home
– Grant of representation: Legal document giving executors or administrators authority to manage an estate
– Intestacy rules: Laws determining how an estate is distributed when there’s no valid Will
– Net estate: The total value of the deceased’s assets, minus any debts or liabilities
At A.D.E Wills, we’re here to help you write your Will. If you are writing your Will and concerned about who may make a potential claim against your estate, contact us on 01865 507174 or at info@adewills.co.uk. Let us help you protect your legacy.
