Have you been left without financial provision following the death of someone who maintained you financially? If someone who has been financially maintaining you dies and their estate fails to make adequate financial provision for you, either by their will or intestacy, the Inheritance (Provision for Family and Dependants) Act 1975 (“the Inheritance Act”) may enable you to bring a claim for reasonable financial provision from the estate.
This category of possible claimants under the Inheritance Act is essentially a “catch all”, for people who are not eligible under any other categories of claimants. For example, this includes individuals who were not a child, spouse, or cohabiting partner of the deceased, but were financially maintained.
“Immediately before the death of the deceased”
A successful claimant must be able to demonstrate that the substantial maintenance they received from the deceased was ongoing up until the deceased’s death. If, for example, the maintenance had ended months or years prior, this requirement is unlikely to be satisfied.
However, it is important to note that if the maintenance ceased for reasons connected with the deceased’s death, such as financial maintenance stopping when the deceased went into care or hospital, this is seen by the Court as a temporary deviation from the normal maintenance and does not bar a claimant from a successful claim.
Contributions must be substantial
The maintenance the claimant received must be a substantial contribution to them in money or money’s worth. The contributions must also be made towards the claimant’s reasonable needs, which includes housing.
It is also important that the maintenance is ongoing, as capital payments (such as one-off gifts of money or a property) do not necessarily constitute a contribution towards the claimant’s maintenance.
The contributions must also be evidenced as meeting the claimant’s ‘reasonable needs’. The key period for needs to be assessed is at the time of the deceased’s death, or a short period before this. However, the Court needs to take into account the claimant’s financial resources when making any decisions, and whether these are likely to significantly change following the deceased’s death.
For example, providing housing to a claimant who already owned their own property would not constitute maintenance for their reasonable needs.
Section 3 Factors
The Court will also have to balance the other factors of section 3 of the Inheritance Act when assessing a claim. These include the needs of the beneficiaries of the estate, the needs of any other potential claimants under the Inheritance Act, as well as the size and nature of the deceased’s estate. On this basis, the potential success, or failure of a claim, can be materially impacted by the needs of others, and whether the estate would be sufficient to reasonably provide for all possible parties.
What the Court can order
If a claim is successful, the Court must then go on to assess what amount should be awarded to the claimant. This will include the Court looking at the claimant’s actual financial circumstances, and needs. It will also be necessary for the Court to assess the actual level of responsibility that the deceased had assumed for the claimant, and what the deceased had considered their responsibility to the claimant to be.
The Court has broad powers as to what they can order in favour of the claimant, including:
- The payment of a cash lump sum from the estate.
- The transfer of property to the claimant, from the estate.
- Giving the claimant a right of occupancy of the deceased’s property.
- Giving the claimant an option to purchase the deceased’s property.
What the Court will order will be determined by the facts of each case, and what the maintenance requirements of the claimant are. It is at the Court’s discretion and dependent on the Judge dealing with the matter.
How can we help?
Claims under the Inheritance Act are complex. It is therefore always best to seek legal advice before even considering making a claim.
Our specialist Will, Trust, and Estate Disputes team at Sintons regularly advise and assist clients with Inheritance Act claims, whether bringing or defending claims. If you need advice in relation to an Inheritance Act claim, or any other contentious probate matter, please contact us for specialist advice. Our team is happy to discuss any concerns you may have. You will find our contact details on our website.
