The case of Miles v Shearer [2021] offers significant insights into the application of the Inheritance (Provision for Family and Dependants) Act 1975, particularly concerning claims by adult children against a parent’s estate.
Miles & Anor v Shearer [2021] EWHC 1000 (Ch)
Background
Tony Shearer, a successful businessman, passed away in 2017 at the age of 68. He was survived by his second wife, Pamela, and two adult daughters from his first marriage: Juliet Miles, aged 40, and Lauretta Shearer, aged 38. Throughout their upbringing, both daughters benefited from private education and substantial financial support. In 2008, Tony gifted Juliet £177,000 and Lauretta £185,000, subsequently informing them that this marked the end of his financial assistance. Following his death, his estate, valued at £2.2 million, was bequeathed entirely to Pamela, with no provision for his daughters.
The claim
The daughters filed claims under section 1(1)(c) of the Inheritance Act 1975. Their claim argued that their father’s Will failed to make reasonable financial provision for them. Lauretta wanted to buy out her ex-husband’s share of her property and to provide for a repayment mortgage rather than an interest- only mortgage whilst Juliet sought funds for housing and retraining as a dog trainer. At the time, Juliet had an autistic child and resided with her mother, and had £175,000 in capital, whereas Lauretta had a salary of approximately £70,000 and held £300,000 in property equity.
Court’s decision
The Court dismissed both claims. It concluded that Juliet lacked a genuine need for maintenance, given her living arrangements and potential earning capacity as a dog trainer. Regarding Lauretta, the Court determined that her requests did not constitute “maintenance” under the Act. The judge emphasised that their father had no legal obligation to support his adult daughters, especially after making substantial gifts in 2008 and clearly communicating his intent to provide no further financial assistance.
Implications
This case highlights the challenges adult children face when applying for an award for financial provision under the Inheritance Act 1975 even where the estate is substantial. The ruling highlights that:
- Adult children must demonstrate a genuine financial need for maintenance;
- Where a parent has clearly stated their intentions, these communications can significantly influence the Court’s decision; and
- When substantial provisions have been made during the deceased’s lifetime, their wishes will be taken into account and prioritised in cases such as this.
Comment
This case demonstrates the importance of the necessity for claimants to support their claim for financial needs effectively and serves as an important reminder of clear testamentary intentions.
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Kirria Hearn is a Trainee Solicitor in our expert Dispute Resolution Team.
For more information regarding the subjects discussed in this article, please contact Kirria or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.