1975 Inheritance Act - No win no fee

Just_tis

I am writing to you  to raise a serious concern about the operation of the Inheritance (Provision for Family and Dependants) Act 1975 and the unintended consequences it can have for families administering estates

.My siblings and I are currently executors and beneficiaries of our late father’s estate. We are responsible for administering the estate in accordance with his will and ensuring that all legal obligations are met.

However, we are now facing a claim under the Inheritance (Provision for Family and Dependants) Act 1975 from a stepchild of our father who lived with him for a relatively limited period many years ago and who was already left a legacy in the will.

The estate itself is relatively modest and largely consists of our father’s home, which we have recently had to sell in order to settle the estate. Despite our efforts to act responsibly and in accordance with the law, we now face the very real possibility that a significant proportion of the estate could be consumed by legal costs associated with defending this claim

.One aspect that feels particularly unfair is that the claimant is being represented on a “no win, no fee” arrangement with her solicitors. This means that she is able to pursue litigation without personal financial risk, while the estate and its beneficiaries face the possibility of very substantial legal costs even if we have acted entirely properly in carrying out the wishes expressed in our father’s will

.In practical terms, this creates a situation where families can feel pressured to settle claims purely to avoid the financial risk of prolonged legal proceedings. Even when a claim appears weak, defending it can cost tens of thousands of pounds. For modest estates such as ours, this means that the estate itself may effectively be eroded by legal fees.In our particular case, the estate is currently worth in the region of £220,000. However, if the case proceeds to a full court hearing, the combined legal costs on both sides could potentially approach or even exceed this amount. This means that there is a very real risk that the entire estate could be lost to legal costs alone, leaving nothing for the beneficiaries despite our father’s clearly expressed wishes in his will.

This situation places executors and families in an extremely difficult position. Even when they have acted properly and responsibly, they can be forced into a position where settling a claim becomes the only financially sensible option simply to protect what remains of the estate.

I fully appreciate that the legislation was originally introduced to protect vulnerable dependants who might otherwise have been left without reasonable provision. However, it appears that the way in which the law currently operates can unintentionally encourage claims to be pursued against relatively modest estates, particularly where claimants are able to rely on “no win, no fee” arrangements.

Just_tis

This is a letter I have written to my MP, various new outlets, and anyone that I think could help. It is something I am trying to bring out in the open, as in al honesty you couldn't make it up

I am writing to you as a constituent to raise a serious concern about the operation of the inheritance (Provision for Family and Dependants) Act 1975 and the unintended consequences it can have for families administering estates.
My siblings and I are currently executors and beneficiaries of our late father’s estate. We are responsible for administering the estate in accordance with his will and ensuring that all legal obligations are met. However, we are now facing a claim under the Inheritance (Provision for Family and Dependants) Act 1975 from a stepchild of our father who lived with him for a relatively limited period many years ago and who was already left a legacy in the will.
The estate itself is relatively modest and largely consists of our father’s home, which we have recently had to sell in order to settle the estate. Despite our efforts to act responsibly and in accordance with the law, we now face the very real possibility that a significant proportion of the estate could be consumed by legal costs associated with defending this claim.
One aspect that feels particularly unfair is that the claimant is being represented on a “no win, no fee” arrangement with her solicitors. This means that she is able to pursue litigation without personal financial risk, while the estate and its beneficiaries face the possibility of very substantial legal costs even if we have acted entirely properly in carrying out the wishes expressed in our father’s will.
In practical terms, this creates a situation where families can feel pressured to settle claims purely to avoid the financial risk of prolonged legal proceedings. Even when a claim appears weak, defending it can cost tens of thousands of pounds. For modest estates such as ours, this means that the estate itself may effectively be eroded by legal fees.
In our particular case, the estate is currently worth in the region of £220,000. However, if the case proceeds to a full court hearing, the combined legal costs on both sides could potentially approach or even exceed this amount. This means that there is a very real risk that the entire estate could be lost to legal costs alone, leaving nothing for the beneficiaries despite our father’s clearly expressed wishes in his will.
This situation places executors and families in an extremely difficult position. Even when they have acted properly and responsibly, they can be forced into a position where settling a claim becomes the only financially sensible option simply to protect what remains of the estate.
I fully appreciate that the legislation was originally introduced to protect vulnerable dependants who might otherwise have been left without reasonable provision. However, it appears that the way in which the law currently operates can unintentionally encourage claims to be pursued against relatively modest estates, particularly where claimants are able to rely on “no win, no fee” arrangements.
I understand that there has been increasing discussion among legal professionals and policymakers about whether aspects of this legislation may require review to ensure that it continues to protect genuine dependants without creating disproportionate financial risks for ordinary families administering estates.
I would therefore be very grateful if you might consider raising this issue or supporting a review of how the legislation operates in practice, particularly in relation to the disproportionate impact of legal costs on ordinary families administering modest estates.
Thank you for taking the time to read this letter. I would very much appreciate any guidance you may be able to provide and whether this is an issue that could be raised more broadly within Parliament.

Boohoo

https://forums.moneysavingexpert.com/discussion/6659376/1975-inheritance-act-no-win-no-fee

This is a wall of text.

Ywill have to break this down into paragraphs to make it easier for people to read and give advice.

Ayr_Rage

Please edit with paragraphs.

Who are you writing to?

A no win no fee law firm wouldn't take on a case without a good possibility of success.

Either settle out of court or take your chances.

Just_tis

https://forums.moneysavingexpert.com/discussion/comment/81920783#Comment_81920783

I am writing to you  to raise a serious concern about the operation of the Inheritance (Provision for Family and Dependants) Act 1975 and the unintended consequences it can have for families administering estates

.My siblings and I are currently executors and beneficiaries of our late father’s estate. We are responsible for administering the estate in accordance with his will and ensuring that all legal obligations are met.

However, we are now facing a claim under the Inheritance (Provision for Family and Dependants) Act 1975 from a stepchild of our father who lived with him for a relatively limited period many years ago and who was already left a legacy in the will

.The estate itself is relatively modest and largely consists of our father’s home, which we have recently had to sell in order to settle the estate. Despite our efforts to act responsibly and in accordance with the law, we now face the very real possibility that a significant proportion of the estate could be consumed by legal costs associated with defending this claim

.One aspect that feels particularly unfair is that the claimant is being represented on a “no win, no fee” arrangement with her solicitors. This means that she is able to pursue litigation without personal financial risk, while the estate and its beneficiaries face the possibility of very substantial legal costs even if we have acted entirely properly in carrying out the wishes expressed in our father’s will.In practical terms, this creates a situation where families can feel pressured to settle claims purely to avoid the financial risk of prolonged legal proceedings.

Even when a claim appears weak, defending it can cost tens of thousands of pounds. For modest estates such as ours, this means that the estate itself may effectively be eroded by legal fees.In our particular case, the estate is currently worth in the region of £220,000. However, if the case proceeds to a full court hearing, the combined legal costs on both sides could potentially approach or even exceed this amount. This means that there is a very real risk that the entire estate could be lost to legal costs alone, leaving nothing for the beneficiaries despite our father’s clearly expressed wishes in his will.

This situation places executors and families in an extremely difficult position. Even when they have acted properly and responsibly, they can be forced into a position where settling a claim becomes the only financially sensible option simply to protect what remains of the estate.I fully appreciate that the legislation was originally introduced to protect vulnerable dependants who might otherwise have been left without reasonable provision

. However, it appears that the way in which the law currently operates can unintentionally encourage claims to be pursued against relatively modest estates, particularly where claimants are able to rely on “no win, no fee” arrangements.I understand that there has been increasing discussion among legal professionals and policymakers about whether aspects of this legislation may require review to ensure that it continues to protect genuine dependants without creating disproportionate financial risks for ordinary families administering estates.

I would therefore be very grateful if you might consider raising this issue or supporting a review of how the legislation operates in practice, particularly in relation to the disproportionate impact of legal costs on ordinary families administering modest estates.Thank you for taking the time to read this letter. I would very much appreciate any guidance you may be able to provide and whether this is an issue that could be raised more broadly within Parliament.

oldernonethewiser

As Ayr_Rage asks, who is this addressed to?

Just_tis

it was a letter that has been sent out to our MP and anyone else that I have considered relevant. I am just trying to raise awareness as you honestly couldn't make it up

That is the problem that is happening no win no fee solicitors are taking these cases on, ours relates to a step sister that only lived with my dad for 3 years. She has had no contact for around 30 years. My dad left a will, she was left a legacy in his will. But she can still raise a claim, has a very weak case

Yes we can hope to settle out of court, but are liable for her legal costs to date. Of which we don't know what they are, but negotiate on these after the event

She is on a no win no fee, so she can push this all the way to court, wont cost her anything, to be awarded a small amount with us accruing large legal costs. If we lose we pay her fees. If we win, we lose as she will be unable to pay our fees

we have been told court fees could cost up to 100k

Just_tis

https://forums.moneysavingexpert.com/discussion/comment/81920796#Comment_81920796

it was a letter sent to our MP and anyone else I considered relevant. I am trying to raise awareness of what is happening. As you couldn't make it up and also if anyone else has been through this

GrumpyDil

As mentioned above solicitors don't generally do no win no fee unless they are relatively confident in the basis of the claim.

What view has your solicitor taken of the claim?

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/81920804#Comment_81920804

You're only liable for her costs if you agree to that as part of the settlement. Have you sought legal advice on the claim? What did that advice say?

Emmia

What would giving them what they want cost? Is that less than the possible legal costs?

If so, you may want to avoid the stress and settle - with their legal costs (the no win solicitor fee) to come out of their share.