The Low down on Marital Inheritance Claims

As the complexity of family finances and relationships grows, so too does the number of cases where spouses are pursuing financial claims against their deceased partner’s estate.

Reasons included:

(a)    The increase in property prices over recent years mean that estates are worth more than they ever have been historically. 

(b)    Family life is becoming increasingly more complex than it has been previously. Second marriages and relationships have led to more diverse family set-ups. For example, a second spouse and children from a previous marriage are both likely to expect to benefit from a Will, even extended families who live away and don’t have much contact with the testator.

(c)    A greater expectation of being the beneficiary of an inheritance coupled with the economic climate means that relatives and dependants can feel disappointed with what they have inherited. 

The Inheritance (Provision for Family and Dependants) Act 1975 (“IPFDA”)

Losing a loved one is never easy and it can be even more distressing if their Will does not provide for you as a surviving spouse. Thankfully, the IPFDA offers a crucial opportunity to ensure that you receive fair financial provision, helping you achieve the security you need during this difficult time.

This Act allows the court to intervene and mandate ‘reasonable financial provision’ for surviving spouses. It’s a legal pathway to ensure that you aren’t left in a worse financial position than if the marriage had ended in divorce.

The court addresses two key questions:

1)      Did the deceased fail to make reasonable financial provision for their spouse?

2)      If not, what reasonable financial provision should be made for the spouse?

The court has the power to order a variety of financial remedies, such as lump sum payments, periodical payments, or property transfers.

When determining a claim, the court considers several factors:

·       The applicant’s financial needs and resources

·       The needs of other applicants and beneficiaries

·       The size and nature of the estate

·       The deceased’s obligations to the claimant

·       Any special needs or disabilities of the claimant

·       Other relevant factors, including the conduct of the parties involved

As a surviving spouse, you are in a strong position. The Act ensures that the financial provision you receive is not just limited to basic maintenance needs but reflects what is reasonable in all circumstances. This often results in a more comprehensive provision than what would have been achieved through a divorce.

A key component of the Act is the “divorce cross-check.” The court will consider what financial arrangement would have been made if the marriage had ended in divorce. This ensures that you are not disadvantaged by the fact that your spouse has passed away, rather than the marriage ending in separation.

The court typically begins by looking at matrimonial assets - those acquired during the marriage. For long-term marriages, even assets initially considered non-matrimonial might be included in the provision. The matrimonial home is treated with special consideration and is often deemed a jointly owned asset, even if legally registered solely in the deceased’s name.

For further information please contact John Lambe