Inheritance Act Claims - Landmark Case
The UK Supreme Court (UKSC) handed down a landmark decision this week in the case of Hirachand v Hirachand which is sure to have an impact on Inheritance Act claims.
Claims under the Inheritance (Provision for Family and Dependents) Act 1975, can be brought by an eligible person, such as a child or grandchild of a deceased person, to bring a claim against the estate asking for reasonable financial provision, where the deceased has not done so, by either excluding them from the will, not providing enough in a will to cover the needs of that person, or by not leaving any will at all and the rules of intestacy applies.
In making a claim of this kind, the claimant would need to show that the deceased had supported the claimant with their needs and that without inheriting a sum, the claimant would be in difficulty.
Usually therefore, a claimant seeking reasonable financial provision, is unlikely to be someone who has enough money to support themselves and their own needs and it is for this reason that potential claimants would look for legal representation under a Conditional Fee Agreement ‘CFA’, known widely as ‘No Win No Fee’.
Solicitors can offer this service to clients where they believe the case has a strong chance of success and given that a case can rumble on for several months, even years, those solicitors will have carried out work during that entire time, without payment and with the risk that if the client loses the case, no fee at all will be received. To counteract that risk and to acknowledge the lack of payment for many months, a solicitor is entitled to charge a ‘Success Fee’, under the terms of the CFA. This means that if the client wins the case, the solicitor gets their fees paid plus an extra amount, usually charged as a percentage on top of the fees.
This can clearly be extremely helpful to those requiring the ability to make a claim but without the means to do so, and in claims such as Inheritance Act claims, it assists people in financial need, asking the court to make a decision to assist them financially.
However, this week, the Supreme Court has decided that CFA Success Fees are no longer recoverable from the estate, which means that the Success Fee must be paid by the claimant to his/her solicitor from the money received from the estate. Inevitably, there will be a decrease in speculative claims, and it will mean that beneficiaries to a will, will have less taken out of the estate pot before they receive their share.
If you have already signed a CFA with your solicitor that includes a Success Fee, the sum will no longer be recoverable from the estate.
The important message from this is that you should always speak to your solicitor about payment options and cost risks in any court action. Here at Lawson West we provide clear, transparent advice regarding costs from the very start of your matter, to give you confidence and a clear ability to make decisions about your potential claim.
Please call us on 0116 212 1000, or complete our free Contact Us form and we will get in touch as soon as possible.
View all
