If you have not been included in the Will of a late relative, you may bring a claim for provision under the Inheritance (Provision for Family and Dependants) Act 1975 (Inheritance Act). Information about who can bring such a claim, and the circumstances under which they can do so is available here.
Financial disclosure in Inheritance Act claims
Inheritance Act claims do depend largely on the claimant showing that they have some financial needs. There is no clear line in the sand that determines whether a person is “in need” or not, and the extent of those needs, as everybody has a different life and financial circumstances. That said, there is a balancing act the Court must undertake to ensure that a successful claim does not undermine other beneficiaries too much, and protects those who have a higher need by reason of disability.
It follows that any claimant in an Inheritance Act claim must set out details of their financial circumstances in their evidence. This is one of the key factors the Court will decide on, and whilst many Inheritance Act claims settle long before they reach trial, a settlement can only normally be achieved if all those involved have a good idea of the evidence available to the Court should the case go to trial. Therefore, it is better to be full and frank about personal finances from the word go.
Understandably, some find this intrusive and it is not unreasonable to ask your opponent(s) to confirm in writing that they will agree to keep financial details, and supporting documents, confidential. The type of documentation people normally need to disclose includes:
- Payslips;
- Letters from the DWP setting out details of any benefits being claimed;
- Bank statements (usually for a 12 month period);
- Up to date invoices for utility bills;
- Receipts with details of expenditure;
- Share certificates for any shares owned;
- Title deeds of any property owned by claimant plus mortgage redemption statement;
- Valuations of motor vehicles and other assets; and
- Details of any other inheritance the claimant is due to receive.
Similarly, the claimant is entitled normally to see details of assets and finances from the estate. The main defendant in a claim under the Inheritance Act is normally the executor of the estate (or in cases where there is no Will, the personal representative/administrator), and whilst estate executors don’t have to disclose every single detail to a claimant, valuations of estate assets and estate accounts are usually the minimum expected.
Sharing details of personal finances is not always something people are comfortable with, but it is an essential part of Inheritance Act claims and therefore should be disclosed fully, at the point of sending the letter of claim. If a case does reach trial, or settlement discussions some way down the line, that financial information should be updated as appropriate.
Comment
Any individual seeking to bring an Inheritance Act claim must do so within six months of the grant of probate being issued, and proceedings cannot be started any later than that date otherwise they will be time-barred under the Limitation Act 1980. It is sometimes possible to bring an Inheritance Act claim out of time but you need to show a strong case and very good reason for not acting sooner, as well as applying to Court very promptly on discovering the limitation date has passed.
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If you have any questions regarding the subjects discussed in this article, please contact a member of our expert Dispute Resolution team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.
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