Liza Anderson Case Study - Dispute Resolution Department

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Inheritance Act claim case study: securing fair provision for children left with limited inheritance

A child who has been left out of a Will, or who has received only limited financial provision, may be able to bring a claim against the deceased’s estate under the Inheritance (Provision for Family and Dependants) Act 1975.

Our contentious probate solicitor, Liza Anderson, recently acted for two children who had each been left a comparatively modest fixed legacy under their father’s Will. Most of the remaining estate had been left to another family member.

One of the children was under the age of 18, which meant that additional legal protections were required before any settlement could become binding.

Case summary

Type of claim: Inheritance Act claim
Clients: Two children of the deceased
Key issue: The Will provided limited fixed legacies to the children while leaving the substantial residue of the estate to another family member
Approach: Protective court proceedings followed by alternative dispute resolution and negotiation
Outcome: Agreement for the residuary estate to be divided equally between the two children, subject to estate liabilities, agreed exclusions and court approval of the minor child’s settlement

Can a child challenge a parent’s Will?

Yes. A child of the deceased, including an adult child, may be eligible to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975.

The fact that someone is disappointed with the contents of a Will is not enough on its own. The court must consider whether the Will, or the intestacy rules where there is no Will, failed to make reasonable financial provision for the applicant.

For most applicants, including adult and minor children, the court considers whether reasonable financial provision has been made for their maintenance.

Every case is assessed individually. The court may consider:

• the applicant’s current and foreseeable financial needs;
• their income, property and other financial resources;
• the size and nature of the estate;
• the financial circumstances of other beneficiaries;
• any responsibilities or obligations the deceased had towards the applicant;
• the relationship between the applicant and the deceased;
• any physical or mental disability affecting an applicant or beneficiary; and
• any other relevant circumstances or conduct.

The circumstances of the case

Under their father’s Will, each child had been left a relatively modest fixed sum. The substantial residue of the estate was due to pass to another family member.

The children brought a claim on the basis that the Will did not make reasonable financial provision for them.

The case involved a number of issues commonly encountered in inheritance disputes, including:

• the financial circumstances and future needs of the children;
• the nature of their relationship with their father;
• the value of the estate;
• liabilities that needed to be paid before the estate could be distributed;
• the treatment of assets or benefits passing outside the Will;
• the legal costs being incurred by the different parties;
• the need to protect the children’s position before the limitation deadline; and
• the additional court procedures required because one claimant was under 18.

The child who was under 18 brought the proceedings through a litigation friend. A litigation friend is an adult appointed to conduct legal proceedings on behalf of a child or someone who is unable to manage the proceedings themselves.

Protecting the children’s position

Inheritance Act claims are subject to an important time limit.

An application should normally be issued within six months of the date on which the Grant of Representation was obtained. Although the court has discretion to allow a claim after this deadline, permission should never be assumed.

Negotiations with executors or beneficiaries do not automatically stop the limitation period from running. It may therefore be necessary to issue protective court proceedings while discussions continue.

In this case, proceedings were issued to preserve the children’s position. The parties then agreed to pause the court process while they explored alternative dispute resolution and attempted to reach a negotiated settlement.

This avoided the immediate cost of preparing further evidence and allowed the parties to focus on finding a proportionate resolution.

The outcome

Following negotiations, settlement terms were reached under which the residuary estate would be divided equally between the two children.

This remained subject to:

• the payment of appropriate estate liabilities;
• certain agreed exclusions;
• the preparation of the necessary legal documents; and
• the court approving the settlement reached on behalf of the child who was under 18.

A Deed of Variation was prepared to record the proposed distribution of the estate. The Deed expressly stated that it would not become binding until the court had approved the settlement involving the minor child.

The case demonstrates how early legal advice, protective proceedings and focused negotiations can help resolve an inheritance dispute without the cost and uncertainty of a fully contested trial.

Why did the settlement require court approval?

Under Civil Procedure Rule 21.10, a settlement or compromise relating to a legal claim brought by or against a child is not valid without the approval of the court.

This requirement applies even where:

• the child’s parent or litigation friend supports the agreement;
• all parties and their solicitors believe the settlement is fair;
• the settlement has been reached without a trial; and
• the proposed outcome appears financially beneficial to the child.

Although a litigation friend can manage the proceedings on behalf of a child, they cannot finally bind the child to a settlement.

The court must independently assess whether the proposed terms properly protect the child’s interests.

What information will the court consider?

The documents required will depend on the circumstances of the case, but an application for approval will commonly include:

• the proposed settlement terms;
• a draft court order;
• an explanation of the claim and the estate;
• confirmation that the litigation friend approves the agreement;
• details of the child’s age and circumstances;
• relevant financial information;
• the documents and evidence relied upon by the parties; and
• a legal opinion addressing whether the settlement is in the child’s best interests.

In this case, Counsel assisted with the approval documentation. A tailored draft order was also prepared because the standard form did not fully reflect the nature of the inheritance settlement.

The court can approve the agreement, ask for further information, require amendments or decline approval if it is not satisfied that the settlement adequately protects the child.

What happens to inheritance money recovered for a child?

The court may also decide how money recovered for a child should be held or managed.

Depending on the settlement and the child’s circumstances, the court may direct that funds are:

• paid into court and invested;
• retained until the child reaches the age of 18;
• placed into an appropriate trust or investment arrangement;
• released in part for a particular purpose that benefits the child; or
• managed in another way approved by the court.

These safeguards help ensure that the child’s entitlement is protected and used for their benefit.

Can an Inheritance Act claim be settled without going to trial?

Yes. Many inheritance disputes are resolved through correspondence, negotiation, mediation or another form of alternative dispute resolution.

Reaching a negotiated agreement can allow the parties to:

• control legal costs;
• reduce delay;
• avoid the uncertainty of a court judgment;
• agree practical arrangements relating to property and estate assets; and
• preserve family relationships where possible.

However, settlement terms need to be drafted carefully. They may need to deal with estate liabilities, legal costs, tax consequences, personal possessions, the administration timetable and the responsibilities of the executors.

Where a child or protected party is involved, the settlement cannot safely be treated as final until the required court approval has been obtained.

What should I do if I have been left out of a Will?

Anyone who believes that a Will or intestacy has failed to make reasonable financial provision for them should obtain legal advice promptly.

Important initial steps may include:

1. Finding out whether a Grant of Probate or Letters of Administration has been issued.
2. Obtaining a copy of the Will.
3. Gathering information about the value and assets of the estate.
4. Preserving evidence about your relationship with the deceased.
5. Collecting evidence of any financial support or dependency.
6. Preparing details of your income, expenditure, property, debts and housing needs.
7. Checking the deadline for issuing a claim.
8. Avoiding reliance on informal negotiations if the limitation deadline is approaching.

Early advice can help establish whether there may be grounds for a claim and protect your position before important deadlines expire.

Frequently asked questions about Inheritance Act claims

Who can make an Inheritance Act claim?

Potential applicants include a surviving spouse or civil partner, certain former spouses or civil partners, an eligible cohabiting partner, a child of the deceased, a person treated as a child of the family and someone who was being maintained by the deceased immediately before their death.

Can an adult child challenge a Will?

An adult child can make an Inheritance Act claim, but being the child of the deceased does not automatically mean that a claim will succeed. The court will examine the adult child’s financial circumstances, needs, relationship with the deceased and the competing interests of other beneficiaries.

How long do I have to make an Inheritance Act claim?

A claim should normally be issued within six months of the date on which the Grant of Representation was obtained. Anyone considering a claim should seek advice well before the deadline.

Do negotiations stop the six-month deadline?

No. Correspondence or settlement negotiations do not automatically stop the limitation period. Protective proceedings may need to be issued even where discussions are continuing.

Does a settlement involving a child require court approval?

Yes. A settlement relating to a legal claim made by or against a child will generally require court approval before it is valid and binding.

Will an Inheritance Act claim have to go to court?

Not necessarily. Many claims are resolved through negotiation or mediation. However, court proceedings may still need to be issued to protect the claimant’s position or obtain approval of a settlement involving a child.

How Liza Anderson and our contentious probate team can help

Liza Anderson is a solicitor in our Dispute Resolution team who specialises in contentious probate and inheritance disputes.

Liza advises individuals, families, beneficiaries, executors and litigation friends in relation to:

• Inheritance Act claims;
• children and adult children left out of a Will;
• claims involving insufficient financial provision;
• challenges to the validity of a Will;
• executor and trustee disputes;
• claims brought against an estate;
• negotiations with beneficiaries and executors;
• mediation and alternative dispute resolution;
• Deeds of Variation; and
• court approval of settlements involving children or protected parties.

Liza understands that inheritance disputes often arise at an emotional and difficult time. She provides clear, practical advice and works with clients to identify the most proportionate way of resolving the dispute, whether through negotiation, mediation or court proceedings.

To discuss an inheritance dispute or arrange an initial appointment with our contentious probate team, contact Martin Tolhurst Solicitors on 01634 728111 or complete our online enquiry form.

This case study has been anonymised to protect client confidentiality. The outcome of every legal matter depends on its individual facts and circumstances. This article provides general information and does not constitute legal advice.