Executor Guide to Claims Under the 1975 Inheritance Act

Are you an executor facing a claim under the 1975 Inheritance Act? Here’s what you need to know. Our Executor Guide to Claims Under the 1975 Inheritance Act will help you through a difficult and worrying time.

If you would like our advice straight away then please contact our Daisy Tester our Head of Contested Estates or Contact us today by calling 01273 604 123, emailing us at enquire@bbc-law.co.uk, or make an enquiry.

If you would like to know more first, then please read on.

Understanding the 1975 Inheritance Act Claim

The Inheritance (Provision for Family and Dependants) Act 1975 allows certain individuals to make a claim against an estate if they believe the will or the intestacy rules do not make reasonable financial provision for them. Eligible claimants include spouses, former spouses, children, individuals treated as children, dependants, and cohabitants.

Steps an Executor Should Take on Receipt of a Claim

Acknowledge the Claim and Seek Legal Advice

If you are administering an estate and receive a claim under the Inheritance Act, it is crucial to take immediate action. The first step is to acknowledge the claim and seek legal advice from a solicitor who specializes in this area. They will help you understand the merits of the claim, guide you through the legal process, and represent your interests.

Assess the Estate’s Value

You need to assess the value of the estate and understand the financial provisions made in the will or under intestacy. This includes identifying assets, liabilities, and any potential tax implications. Accurate valuation will help you gauge the impact of the claim on the estate. Ensure all distributions are put on hold until the claim is resolved.

Responding to the Claim

On acknowledging the claim, the next steps will be to assess the merits of the claim being made before providing a response. This involves compiling all relevant documents, evidence and valuations about the estate, the Will, and the claimant’s relationship with the deceased. This may include financial and medical records, correspondence, or evidence from family members or friends.

Involving the Beneficiaries

As the executor, you must act in the best interests of the estate and its beneficiaries. Keep them informed about significant developments, including claims made under the Inheritance Act. Consulting the beneficiaries at an early stage helps enable transparency and trust, allowing them to understand the nature of the claim and its potential impact on their inheritance.

Negotiate

In many cases, negotiation can lead to an amicable settlement without the need for court intervention. Mediation is often a cost-effective and less adversarial approach to resolve disputes. Consider the financial and emotional implications on the estate before proceeding to court, as significant sums could be spent on legal costs reducing the inheritance received by other beneficiaries and putting a strain on family relationships.

Prepare for Court

If negotiations fail, prepare for court proceedings if the claimant is pursuing their claim. This involves drafting legal documents, witness statements, and presenting evidence before the judge. Your solicitor will guide you through these steps and represent your case in court.

Case Studies

These are a couple of the smaller claims we have dealt with recently.

Case Study 1

We acted for the executor and sole beneficiary of her mother’s estate, where an Inheritance Act claim was made by her brother. The son was wholly reliant on state benefits and suffered from severe depression and PTSD. The estate had a net value of approximately £190,000. Settlement was reached out of court, and the matter was resolved swiftly within four months of receiving the Letter of Claim. The executor paid the claimant son £26,500 from the estate, reflecting just under 15% of the net estate.

Case Study 2

We again acted for the executor and beneficiary of her mother’s estate, where an Inheritance Act claim was made by her brother. The son was provided 5% of the estate under the deceased’s Will but still made a claim asserting this was insufficient. The estate had a net value of approximately £340,000. The son issued court proceedings; however, the matter was settled at mediation before attending trial. The settlement saw the son receiving £51,000 from the estate, reflecting approximately 15% of the estate.

Conclusion

Receiving an Inheritance Act claim requires careful consideration and a strategic response. By understanding the claim, seeking legal advice, and navigating the legal process with diligence, you can protect the estate and ensure fair provision for all parties involved.

Need Assistance?

If you are an executor facing a claim under the 1975 Inheritance Act, don’t navigate this complex process alone. Contact our experienced legal team today for expert advice and representation. We are here to help you every step of the way.

Contact us today by calling 01273 604 123, emailing us at enquire@bbc-law.co.uk, or make an enquiry.