The Inheritance Act of 1975 permits specific individuals to make claims against an estates left behind by someone who has passed away for "adequate financial support." These types of claims often come from grown-up children, live-in partners without marriage, and others reliant on the deceased for monetary assistance.
Although we all enjoy complete "freedom" when it comes to deciding who should inherit our assets and estate in this nation (unlike several countries in Europe), the 1975 Act empowers the courts (under suitable conditions) to reallocate what has been outlined in a will—or distribute according to intestacy laws if there isn’t one—by following specific criteria laid out in the same act.
The quantity of cases filed under the 1975 legislation has significantly risen during the past ten years.
There are typically three explanations offered for this phenomenon: firstly, the rising worth of properties (frequently due to substantial home equity) makes legal claims financially viable; secondly, contemporary family dynamics such as remarriages create conflicting interests; and thirdly, wills that lack proper drafting contribute significantly.
It could also be that individuals are currently more acquainted with this kind of claim via the narratives of others or online research.
Claims under the 1975 Act are occasionally filed together with other claims aimed at invalidating or altering a will, suing the individual who wrote the will, or seeking an advantageous stake in assets due to a pledge made by the deceased or contributing financially to the estate's property.
Most claims under the 1975 Act are resolved prematurely and prior to any trial through the submission of written settlement offers or during a mediation session.
The expenses related to legal proceedings can frequently be staggering (it's not unusual for them to reach six-figure sums) because preparing and defending such claims effectively requires substantial effort. These legal fees may occasionally be covered from the decedent’s estate or borne by the defeated party.
When determining whether to grant an award to a claimant under the 1975 Act, the court considers a broad range of criteria. The primary emphasis is placed on assessing the financial requirements and future prospects of both the claimant and other entitled beneficiaries as outlined in the will or through intestacy laws.
Claims made under the 1975 Act are typically very emotionally charged and filled with resentment. This often stems from the personal aspects involved in the proceedings (such as finances and health) considered by the court. relationship with the deceased —and the reality that the conflict frequently arises while the parties are still grieving over the loss of the deceased.
Legal disputes frequently revolve around principles and an alleged commitment to the deceased’s intentions or notions of equity, along with claims that the individual’s judgment may have been unduly influenced before their passing.
Although you cannot prevent someone from making a claim for adequate financial support from your estate under the 1975 Act, several measures can be implemented to lessen the probability of such a claim being made and decrease the likelihood of it being successful.
Initially, draft a will with the assistance of an expert. It’s surprising how numerous individuals either do not create wills at all or opt against hiring a professional will writer due to cost concerns.
Based on my experience, numerous claims (such as those covered under the 1975 Act) against an estate after someone has passed away might have been avoided or reduced if the individual had consulted with a competent lawyer to create their will. A will crafted by a professional significantly increases the likelihood of ensuring your assets are distributed according to your preferences and intentions.
Instruments like lifelong interest in properties along with discretionary trusts may be included to cater to the needs of rival family factions and minimize the hazard of spending tens or hundreds of thousands of pounds on legal costs, thereby diminishing your estate’s value.
Secondly, communicate thoughtfully and sensitively throughout your life with your family, loved ones, and other beneficiaries.
Occasionally, claimants who feel let down are not as preoccupied with the funds but rather distressed by the sense of being ignored or forsaken by the departed individual.
If you intend to leave a substantial amount to charity, or allocate more funds to one child than another, it’s important to discuss these decisions with your children. This way, they may comprehend your reasoning and have the opportunity to ask questions while you are still around to address them.
Many conflicts I encounter could have been prevented if the departed had communicated and clarified their decisions to those who anticipated receiving an inheritance.
Thirdly, and alongside the aforementioned advice, prepare a side letter or "expression of wishes" document. Human memory tends to weaken over time, and personal situations can evolve.
A letter expressing one's wishes, penned in simple, straightforward terms, can assist loved ones who remain after someone passes away in comprehending their final decisions regarding inheritance and how these should be implemented. This document can further aid in clarifying the reasons behind such choices made by the departed individual.
Although a letter of wishes does not have legal force, if the matter goes to court, a judge will have access to this letter to better understand the rationale behind the will.
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George Woodhead is a barrister affiliated with Selborne Chambers in London. His expertise lies in handling cases related to property, as well as matters concerning wills and trusts.
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