The law in the UK works on the principle that an individual is entitled to dispose of their estate however they see fit; however, this means the courts have a limited power to make orders which interfere with the effect of a Will when there has been a failure to make reasonable financial provisions for those connected with the deceased. For example, blended families and cohabiting situations are increasing every year, but your Will is revoked the moment you get remarried. This means you might leave nothing to the rest of your family if your Will isn’t updated.
In 1975, The Inheritance (Provision for Family and Dependents) Act was produced to allow certain people to claim increased financial provisions from a deceased person’s estate where the Will or statutory rules fail to make a reasonable provision for them. Applicants must demonstrate that the provision, which might be no provision at all, is unreasonable and things that are considered by the courts are:
- Lifestyle of the applicant, and whether their lifestyle has changed since the passing of the deceased.
- Connection between the applicant and the deceased. Spouses and Civil Partners are the expected recipients, so any deviation has to be taken into account.
- The Financial value of the Estate.
And those who can make a claim are:
- the spouse or civil partner of the deceased
- the former spouse or civil partner of the deceased (as long as that person has not remarried/entered into a subsequent civil partnership)
- a person who, for the two years prior to the death, was living with the deceased as if they were a spouse or civil partner
- a child of the deceased
- a person who was treated as a child of the family by the deceased
- any other person who was being maintained, wholly or partly, by the deceased immediately prior to their death.
Section 11 of the Act is interesting as it added definition to claims made when property was contracted by Will. Claims can and have put original contracts aside in favour of the applicant, however, in the Sismey v Salandron [2021] case, the deceased had divorced his third wife, but had asserted that his son from that marriage should inherit his home. However, he later married again, which revoked the original Will and was left to the new wife as his sole beneficiary. The son made a claim to enforce the original agreement, which was counterclaimed by the new wife under the Provisions Act as a reasonable financial provision. In this instance, the judge found that the property was part of a negotiated settlement between the deceased and the previous wife, who did not pursue a claim to his pension, and awarded the property to the son. The Inheritance Act 1975 deliberately makes it difficult for people avoid its operation, as full enquiries take place during the process to protect the deceased’s assets.
This inheritance clause is something to be taken into serious consideration when defining the assets and beneficiaries of your Will. You want the utmost protection from those who might make a claim, as some beneficiaries may still be willing to take the risk. If you’d like to update your Will or protect your beneficiaries with a consultation on your documentation, contact us here today.