Learning Outcomes
After reading this article, you will be able to identify who may bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975, explain the statutory factors the court must consider when assessing such claims, and apply these principles to SQE1-style scenarios. You will also understand how the court balances the needs of applicants and beneficiaries, and the practical implications for estate distribution.
SQE1 Syllabus
For SQE1, you are required to understand the operation of the Inheritance (Provision for Family and Dependants) Act 1975, especially the factors the court must consider when determining whether reasonable financial provision has been made for eligible applicants. In your revision, focus on:
- the categories of persons entitled to apply for provision under the Act
- the statutory factors the court must weigh when assessing claims (including financial needs, obligations, size of estate, and disabilities)
- how the court balances competing interests of applicants and beneficiaries
- the practical impact of these claims on estate administration and distribution
Test Your Knowledge
Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.
- Who is eligible to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975?
- List three statutory factors the court must consider when deciding whether to make an order for financial provision under the Act.
- True or false? The court must always prioritise the applicant’s needs over those of other beneficiaries.
- What is the significance of the size and nature of the estate in an Inheritance Act claim?
Introduction
The Inheritance (Provision for Family and Dependants) Act 1975 (“the Act”) allows certain people to apply to the court for reasonable financial provision from a deceased person’s estate if the will or intestacy rules do not make such provision. The Act gives the court discretion to vary the distribution of the estate, balancing the deceased’s wishes with the needs of eligible applicants and other beneficiaries.
Key Term: reasonable financial provision
The standard of provision the court considers appropriate for an applicant under the Act, based on their category and circumstances.
Eligible Applicants
Only specific categories of people may apply for provision under the Act. These include:
- spouses or civil partners of the deceased
- former spouses or civil partners who have not remarried or entered a new civil partnership
- cohabitants living with the deceased as spouse or civil partner for at least two years before death
- children of the deceased (including adopted children)
- persons treated as a child of the family
- anyone maintained (wholly or partly) by the deceased immediately before death
Key Term: applicant
A person entitled to apply for financial provision from the estate under the Act.
Statutory Factors Considered by the Court
When deciding whether to make an order for financial provision, the court must consider all the circumstances of the case. Section 3 of the Act sets out a list of statutory factors that guide the court’s assessment.
Financial Resources and Needs of the Applicant
The court examines the applicant’s current and foreseeable financial position, including:
- income and earning capacity
- assets and property
- debts and liabilities
- reasonable living expenses
The aim is to determine whether the applicant’s needs are met by the provision (if any) made for them.
Key Term: financial needs
The applicant’s present and future requirements for maintenance, support, and living expenses.
Financial Resources and Needs of Other Applicants and Beneficiaries
The court must also consider the financial position of any other applicants and all beneficiaries under the estate. This ensures that provision for one person does not unfairly prejudice others.
Obligations and Responsibilities of the Deceased
The court assesses any legal or moral obligations the deceased had towards the applicant or other beneficiaries. This may include:
- duties as a spouse, parent, or carer
- promises or assurances made to the applicant
- contributions made by the applicant to the deceased’s welfare or estate
Size and Nature of the Net Estate
The value and composition of the estate affect what provision can reasonably be made. The court considers:
- total value of assets
- liquidity (how easily assets can be converted to cash)
- existing liabilities and debts
If the estate mainly consists of illiquid assets (such as a family home or business), the court may need to find solutions that avoid forcing a sale.
Key Term: net estate
The total value of the deceased’s assets after deducting debts, liabilities, and funeral expenses.
Physical or Mental Disability
Any physical or mental disability of the applicant or a beneficiary is a relevant factor. The court will consider:
- current and future care needs
- impact on earning capacity
- availability of state support
Any Other Relevant Circumstances
The court has discretion to consider any other matter it deems relevant, including the conduct of any party or the deceased’s reasons for making (or not making) provision.
Worked Example 1.1
Scenario:
A widower dies leaving his entire estate to his adult son. His daughter, who is disabled and unable to work, receives nothing. She applies under the Act.
Answer:
The court will consider the daughter’s financial needs (including her disability), the son’s financial position, the deceased’s obligations as a parent, and the size of the estate. The court may order provision for the daughter if it finds the will did not make reasonable financial provision for her maintenance.
Worked Example 1.2
Scenario:
The deceased leaves his estate to his new spouse, excluding his adult child from a previous marriage. The child is employed and financially independent but claims under the Act.
Answer:
The court will consider the child’s financial resources and needs, the spouse’s needs, the deceased’s obligations to both, and the size of the estate. If the child is self-sufficient, the court may find that no further provision is reasonable, especially if the spouse has greater needs.
Exam Warning
The court does not automatically favour the applicant. It must balance all relevant factors, including the needs of other beneficiaries and the deceased’s wishes. Adult children who are financially independent will rarely succeed unless there are special circumstances.
Revision Tip
For SQE1, memorise the statutory factors in section 3 of the Act and be able to apply them to different applicant categories and fact patterns.
Key Point Checklist
This article has covered the following key knowledge points:
- Only certain categories of people can apply for provision under the Inheritance (Provision for Family and Dependants) Act 1975.
- The court must consider all the circumstances, including statutory factors such as financial needs, obligations, and the size of the estate.
- The court balances the needs of the applicant with those of other beneficiaries and the deceased’s wishes.
- Physical or mental disability of any party is a relevant factor.
- The court has discretion to consider any other relevant matter, including conduct.
Key Terms and Concepts
- reasonable financial provision
- applicant
- financial needs
- net estate