### Understanding Inheritance Act Claims and Their Impact on Charitable Legacies

In our [previous article](https://www.vwv.co.uk/news-and-events/blog/charity-law-brief/badly-drafted-legacies), our [Legacy Protection team](https://www.vwv.co.uk/law-sector/charity-lawyers/legal-advice/legacy-income-protection) explored some of the legacy protection issues that most commonly crop for charities and identified [Will disputes](https://www.vwv.co.uk/legal-services/private-client-law/contentious-probate-will-disputes) as a key area of concern.

We highlighted the case of Knipe v British Racing Drivers Motor Sport Charity & Others, involving a claim brought by the deceased’s partner under the Inheritance (Provision for Family and Dependants) Act 1975 (the Inheritance Act).

We now turn our focus to this particular type of claim, known as an ‘Inheritance Act claim’, and explore how it can affect gifts in Wills to [charities](https://www.vwv.co.uk/law-sector/charity-lawyers).

#### Who can bring an Inheritance Act claim?

The class of claimants is clearly defined as:

– spouses and civil partners including former spouses and civil partners
– children, including adult children and those treated as a child of the family by the deceased
– cohabiting partners of the deceased, as long as the cohabitation lasted 2 years or more and continued right up to the deceased’s death
– anyone else, who need not be a family member, but who was financially dependent upon the deceased up to the deceased’s death

These are all automatically eligible to bring a claim.

#### Does that mean a claimant will automatically succeed?

No. An eligible claimant will still have to demonstrate that they are not adequately provided for under the deceased’s Will.

#### Doesn’t a valid Will trump a claim?

Sadly for charities, if they are beneficiaries of the Will, it’s not quite that simple. The Inheritance Act acts as a form of safety net for eligible claimants if they can demonstrate to a court that financial provision should nonetheless be made for them from the deceased’s estate.

#### How much will typically be paid to a claimant if successful?

There is no set percentage or sum that will be paid out to a successful claimant. Outcomes in these cases are highly dependent upon the individual facts of each case.

#### Can these claims be settled out of court?

Absolutely. It is relatively rare for Inheritance Act claims to be decided at a contested trial as the courts encourage parties to settle these particular types of claims wherever possible through Alternative Dispute Resolution.

#### Is there a time limit on bringing these claims?

Claimants have six months from the date of the Grant of Probate to issue their claim at court. After which, they have a further four months to serve the claim on the executors and beneficiaries.

#### Will the estate pay for the legal costs of defending the claim?

No. The executors of the estate should remain neutral in such claims and are not permitted to use funds from the estate to defend a claim on behalf of beneficiaries.

#### Can defendant charities have the same legal representative to reduce costs in defending a claim?

Yes, as long as there is not a conflict of interests created by the same legal representative acting for both and as long as the beneficiaries agree on a joint approach as regards defending the claim.

#### What should we do if our charity is notified of a claim relating to a legacy?

Act quickly in seeking specialist legal advice. Claimants are required to provide a detailed Letter of Claim to the executors and beneficiaries before they issue proceedings at court.

If you are concerned about a potential Inheritance Act claim or another form of Legacy Dispute our [Legacy Protection team](https://www.vwv.co.uk/law-sector/charity-lawyers/legal-advice/legacy-income-protection) will be happy to provide free initial advice. Please contact Julia Hardy on 07798 646970, or complete the form below.

Understanding Inheritance Act Claims and Their Impact on Charitable Legacies

In a recent exploration by our Legacy Protection team, the complexities surrounding legacy protection for charities were brought to light, with a particular focus on Will disputes. A notable case, Knipe v British Racing Drivers Motor Sport Charity & Others, was highlighted, showcasing the challenges posed by Inheritance Act claims.

Such claims can significantly affect charitable legacies, potentially diverting funds intended for charitable causes to claimants deemed eligible under the Inheritance (Provision for Family and Dependants) Act 1975. This article delves into the intricacies of Inheritance Act claims and their implications for charities.

Eligibility for Inheritance Act Claims

The Inheritance Act specifies a clear set of individuals who may bring a claim, including:

• Spouses and civil partners, including former ones
• Children, including adult children and those treated as such by the deceased
• Cohabiting partners, provided the cohabitation lasted at least two years up to the deceased’s death
• Anyone financially dependent on the deceased at the time of death

However, eligibility does not guarantee success. Claimants must prove that the Will does not adequately provide for them, which might be easier to establish if they were entirely omitted from the Will.

The Challenge for Charities

For charities named in Wills, the principle of testamentary freedom is a fundamental starting point. However, the Inheritance Act can override this principle if a claimant successfully demonstrates a need for financial provision from the estate. This poses a significant concern for charities, as it can lead to the deceased’s wishes being seemingly overlooked.

The landmark case of Ilott v Blue Cross & Others in 2017 underscored the tension between testamentary freedom and the court’s discretion under the Inheritance Act. Despite the deceased’s explicit intention to benefit animal charities, the court awarded a portion of the estate to an estranged daughter, highlighting the complex balance courts must strike between competing interests.

Potential Outcomes of Inheritance Act Claims

The amount awarded to successful claimants varies widely, influenced by numerous factors, including the claimant’s financial needs, any disabilities, the deceased’s obligations, and the size of the estate. While it’s challenging to predict exact outcomes, legal experts can often provide a range of likely scenarios based on the case’s specifics.

Settling Claims Out of Court

Most Inheritance Act claims are settled through Alternative Dispute Resolution, such as mediation, to avoid the costs and uncertainties of a trial. This approach is encouraged by courts and can be conducted in person or via video link, considering current social distancing guidelines.

Time Limits and Legal Costs

Claimants have a six-month window from the Grant of Probate to issue their claim, with an additional four months to serve it on the executors and beneficiaries. While it’s possible to apply for an extension, court permission is required and not guaranteed.

Importantly, the estate’s executors cannot use estate funds to defend against a claim. Beneficiaries must cover their legal costs, although the court may order the losing party to pay the majority of the winning party’s costs.

Advice for Charities Facing Inheritance Act Claims

Charities notified of a potential claim should seek specialist legal advice promptly. Early expert assessment can identify the strengths and weaknesses of a claim, potentially averting court proceedings and saving costs.

For charities concerned about Inheritance Act claims or other legacy disputes, our Legacy Protection team is ready to offer initial advice and support.

This complex area of law underscores the need for careful drafting of Wills and the importance of legal advice in protecting charitable legacies against potential claims. As the legal landscape evolves, staying informed and prepared is crucial for charities looking to safeguard their legacy income.