Understanding “Reasonable Financial Provision” in a Will Dispute

Discovering that a will has left you without what you consider adequate financial provision can be deeply concerning. If you believe you have been unfairly treated, you might be considering a will dispute. The Inheritance (Provision for Family and Dependants) Act 1975 provides a crucial avenue for certain individuals to challenge a will (or the rules of intestacy if no will exists) on the grounds that it fails to make “reasonable financial provision” for them. At Van Eaton Solicitors, we understand the complexities surrounding such claims and aim to clarify this important legal concept.

This article will demystify “reasonable financial provision” in the context of a will dispute and explain the key factors the court will consider when assessing whether a will has fallen short of this standard. Understanding these principles is essential for anyone contemplating or facing a claim under the 1975 Act.

Defining “Reasonable Financial Provision” in a Will Dispute

It’s important to understand that “reasonable financial provision” isn’t simply about what an individual desires or feels they are entitled to. The legal definition varies depending on the applicant’s relationship with the deceased, a crucial aspect in any will dispute based on this ground.

For a Spouse or Civil Partner: The law sets a higher standard: “such financial provision as it would be reasonable in all the circumstances of the case for a husband or wife to receive, whether or not that provision is required for his or her maintenance.” This acknowledges the unique financial interdependence often inherent in marital relationships. The court may even consider what provision would be reasonable if the marriage or civil partnership had ended in divorce.  

For all other eligible applicants: A different, generally lower, standard applies: “such financial provision as it would be reasonable in all the circumstances of the case for the applicant to receive for his maintenance.” Here, “maintenance” is generally interpreted as a provision to cover the applicant’s everyday living expenses at a reasonable level, not necessarily to maintain a particular lifestyle they may have enjoyed previously. This distinction is vital to grasp when considering a will dispute.  

Who Can Claim for Reasonable Financial Provision in a Will Dispute?

Several categories of individuals are eligible to bring a claim for reasonable financial provision under the 1975 Act, potentially leading to a will dispute:

• The spouse or civil partner of the deceased.
• A former spouse or civil partner who has not remarried or entered into a new civil partnership.  
• Children of the deceased (including adult children).
• Stepchildren or individuals treated as children of the family.
• Anyone who was being maintained by the deceased immediately before their death.
• A cohabitant (living as husband and wife or civil partners) for at least two years prior to the death.

If you fall into one of these categories and believe the will has not made reasonable financial provision for you, you may have grounds to pursue a will dispute.

Factors the Court Considers in a Will Dispute

When considering a claim for reasonable financial provision in a will dispute, the court has broad discretion and will meticulously examine various factors outlined in Section 3 of the 1975 Act. These include:

• The applicant’s present and future financial resources and needs: The court will assess what income, capital, and earning capacity the applicant currently has and is likely to have in the future.
• The financial resources and needs of other applicants: If there are multiple individuals claiming under the Act, the court will consider the needs of each.
• The financial resources and needs of the beneficiaries of the estate: The court will also look at what the individuals who are due to inherit under the will stand to receive and their own financial situations.
• Any obligations and responsibilities the deceased had towards the applicant or any beneficiary: This includes moral obligations as well as legal ones.
• The size and nature of the net estate of the deceased: The amount of assets available for distribution will clearly influence what provision can be deemed reasonable.
• Any physical or mental disability of the applicant or any beneficiary: This can significantly impact their financial needs.
• Any other matter the court considers relevant: This allows for a flexible approach to consider the specific circumstances of each will dispute. This can include the conduct of the applicant or other parties in some cases.
• For spouses/civil partners: The court will also consider their age, the duration of the marriage or civil partnership, and their contribution to the family’s welfare.

Understanding these factors is crucial when evaluating the potential success of a will dispute based on a lack of reasonable financial provision.

What the Court Might Order in a Will Dispute

If the court finds that reasonable financial provision has not been made in a will, it has the power to make various orders to rectify the situation. These can include:

• Lump sum payments to the applicant.
• The transfer of property from the estate to the applicant.
• The settlement of property for the applicant’s benefit.
• The creation of a trust to provide for the applicant.
• Regular maintenance payments.

The specific order will depend on the individual circumstances of the will dispute and what the court deems necessary to achieve reasonable financial provision.