Inheritance Act Claims: A Guide For Personal Representatives
Acting as a personal representative (‘PR’) of an estate, whether as an executor named under a Will or an administrator if there is no Will, is not an easy task. It becomes harder where there is an Inheritance Act claim made against the estate that the PR might have no idea about before agreeing to take on the role.
In this article, we explain what personal representatives need to know about Inheritance Act claims and their duties throughout the process.
Who can make an Inheritance Act claim?
A claim under the Inheritance (Provision for Family and Dependants) Act 1975 allows certain people to ask the court for reasonable financial provision from an estate if the will (or intestacy) does not meet their needs. Potential claimants include a spouse or civil partner, a former spouse or civil partner who has not remarried, a cohabiting partner of at least two years, children (including adult children), someone treated as a child of the family, and anyone who was being maintained by the deceased.
When can an Inheritance Act claim be made?
In Inheritance Act claims, the claimant must typically issue a claim within six months of the grant of probate or letters of administration. The court has discretion to extend this deadline. A claim may be made before the grant is made. Once a claim has been issued, the claimant has four months to serve the court papers, so it is possible that the PRs know nothing about the claim until 10 months after the grant, although generally speaking, a PR will not be personally liable if they distribute the estate after six months if they are not aware that any claim has been made.
How should personal representatives respond to Inheritance Act claims?
Ideally, the claimant will send a letter of claim with plenty of time before the deadline. This gives the PRs time to take advice from a specialist contentious probate solicitor.
The PRs should adopt a neutral stance, which means not taking sides between the claimant and the beneficiaries, pausing or limiting distributions until the claim is resolved, facilitating sensible disclosure and proportionate alternative dispute resolution and seeking the court’s directions where appropriate to navigate difficult judgment calls. The PRs should prepare estate accounts to be disclosed to the parties and to the court in due course.
It is vital that you remain neutral throughout Inheritance Act claims. Personal representatives should ensure they continue to administer the estate appropriately while protecting the interests of both the beneficiaries and the estate.
What if a personal representative is also a beneficiary?
In many cases, one or all of the PRs may be beneficiaries of the estate and will be personally affected by the claim. They might want to take advice about how the claim affects them personally and whether they will be able to continue to act as a neutral PRe.
Can Inheritance Act claims be resolved without going to court?
The court expects parties to explore alternative dispute resolution. Mediation is common and can save costs if used at the right time with proper financial information. If the claimant is a minor or lacks capacity, any settlement may require court approval; PRs should take advice from a specialist probate solicitor on the correct approval route.
Who pays the costs of an Inheritance Act claim?
The costs of Inheritance Act claims can be high. PRs are generally entitled to their reasonable costs from the estate if they act properly and neutrally but this is always in the discretion of the court. They should act reasonably, take and follow specialist advice, and consider seeking the court’s directions where appropriate.
Next steps for personal representatives
If you are acting as a personal representative and an Inheritance Act claim has been made against the estate, it is wise to seek specialist legal advice at the earliest available opportunity. By speaking to a specialist contentious probate solicitor, you can be certain that you understand your duties, protect the estate and minimise the risk of personal liability.
At GA Solicitors in Plymouth, our contentious probate team are highly experienced in advising executors and personal representatives on Inheritance Act claims and estate disputes. Whether you are aware of a claim being made or want to get ahead of any future issues, please contact our specialist team by calling 01752 203500 or emailing enquiries@GAsolicitors.com.
All content on this website (inclusive of guides, blogs and imagery) is strictly copyrighted by Gill Akaster LLP, trading as GA Solicitors. It is not to be used by any third party without prior contact and permission. Any requests for content should be sent to katy.mckenna@GAsolicitors.com.