Inheritance Act Claims: Justice will be done
When we eventually die we should be able to leave all our worldly goods to whoever we choose, right? Wrong! A recent legal case has highlighted how the Inheritance (Provision for Family & Dependants) Act 1975 can be called upon to rectify estate distributions to ensure that justice is done.
The case involved a couple in their nineties who had been married for over thirty years. During this time Mrs W had nursed her husband through the loss of his sight. Mr W had paid all the household bills and financed their holidays. His state pension was paid straight into Mrs W’s bank account.
When Mrs W died in September 2007 Mr W was shocked to learn that her investments over the years had enabled her to amass a tidy £670,000. He was even more surprised to find out that she had not left any of it to him in her Will. Her fortune, which included the family home (registered in her sole name) had instead been left to Mrs W’s daughter by a previous relationship, with other financial gifts to grandchildren and charities.
A further blow for Mr W was that she had changed her Will only a year prior to her death. Under the previous Will he would have inherited £50,000 and would have been allowed to stay in the family home until he died; what lawyers call a ‘life interest’. It is believed that Mrs W had gone against her solicitor’s advice in changing the Will after her husband became legally blind as she thought he would die before her due to his health.
With just £40,000 in savings and surviving on a state pension Mr W was left homeless as a result of Mrs W’s Will. Mr W therefore brought a claim against his late wife’s estate for ‘reasonable financial provision’ under the 1975 Inheritance Act. After lengthy negotiations he received a sum of £225,000 in an out-of-court settlement. This enabled Mr W to purchase a house of his own.
So, whilst you can leave your estate to whoever you wish, the law is on hand to rectify particular injustices should the outcome be manifestly unfair.
Spouses have the strongest claim under the 1975 Inheritance Act but there are other categories of claimant including co-habitees, children and financial dependants. When an Inheritance Claim is brought against an estate the court will weigh up the needs and resources of the claimant with those who benefit under the Will (or Intestacy if there is no Will). However, as happened in this case, such claims often settle out of court with the costs of all parties being paid from the estate.
If you feel that you might have a claim against an estate and would like justice to be done then please contact us for a free assessment.
Comments
I separated from my husband
I separated from my husband and a decree nisi was issued but never made absolute. He has now died but I unerstand he did not make a will. His children from his previous marriage are saying that I am not entitled to any of his estate. Is that correct. If I am entitled, how can i make a claim?
my father passed away in june
my father passed away in june last year, my step mother for whom he was ,arried to for 25 years was sole benificery of his will. my father looked after myself and my children for many years providin me with a flat which i rented from him and finacially looked after us wen we needed it. my step mother now wants to sell my home do i hav a case in court under the 1975 act
It will depend upon the terms
It will depend upon the terms of the pension policy. Often such policies will pay out on a discretionary basis meaning they can determine who should inherit based upon who their criteria of the most appropriate beneficiary. However in most cases where the nominated beneficiary has pre-deceased they will pay the monies out to the deceased's executors to be incorporated into the rest of the estate.
If this is the case and you and your siblings are beneficiaries under his Will then you would then inherit the pension via his estate. If he did not leave a Will then his estate would pass under the intestacy provisions and as the children of the deceased whose spouse has predeceased you would each be entitled to an equal share of the estate.
I would suggest you contact the pension company and find out what the position is.
Hi, my father recently passed
Hi, my father recently passed away he has a pension as my mother passed away 3 months before my dad there is no next of kin. the next in line is myself and my brother and sister. will we be intitled to a pay out. even though henever put our names down. thank you
In summary:- Without being
In summary:-
Without being formally instructed we cannot provide definitive advice but the normal position relating to the law of intestacy is that a spouse is entitled to the first £250,000. Unfortunately decree nisi is not sufficient to stop this entitlement- only decree absolute is sufficient. However as a child of the deceased you are within a category of people entitled to challenge the estate under the Inheritance (Provision for Family and Dependants) Act 1975. Such claims by adult children are often difficult as the children are usually financially independent. However the Court will look at the financial needs and resources of each of the parties and weigh up whether reasonable financial provision ought to have been made for the children out of the estate.
The house would appear to be a separate issue as if it was still owned as "joint tenants" rather than as "tenants in common" then the whole of the house passes to the surviving owner outside of the estate of the deceased one. This means that any IHA claim you want to bring would only be against the assets in your father's estate that were not the house.
My father passed away at
My father passed away at easter. He left no will. My parents parted company 6 years ago and had had no contact for approx 4 years. They were due in court for 2nd FDR hearing 10 days after he died. Decree Nissi had been pronounced, but not decree absolute. My mother was the petitioner in the divorce. Since his death, my mother is saying she is NEXT OF KIN, HIS WIFE, HIS WIDOWER etc and is entitled to the whole of his estate (which falls under £250,000). Has this happened before and could I have a case? Joint tenancy on matrimonial home not severed.