Couples: What Constitutes Reasonable Financial Provision?

In the UK, there’s a long-established principle that individuals are entitled to leave their estate to anyone they choose. However, under the Inheritance Act 1975 (Inheritance Act), certain people can challenge the terms of a Will if they can demonstrate that their loved one’s Will has left them without “reasonable financial provision”.

Those eligible to apply to the Court include a clearly defined class of people, including married, civil, and unmarried partners or those recently divorced. So, for couples, what constitutes reasonable financial provision?

Reasonable Financial Provision

The concept of ‘reasonable financial provision’ differs depending on your relationship with the deceased person.

Married or Civil Partners

How much a claimant may receive from an estate depends on their status. A spouse or civil partner is entitled to “financial provision as is reasonable” in the circumstances, whether or not that provision is needed for their day-to-day upkeep.

An individual is classed as being ‘maintained’ if they were financially supported by the person who died (in some way) during their lifetime and that this support continued until death. Support includes regular financial payments or large gifts. Maintenance also includes allowing the claimant to live in their property rent-free or for a peppercorn or reduced rent.

However, the situation is more complicated if you were separated or going through divorce proceedings when your partner died. Depending on the circumstances, the Court may consider that your relationship had not formally ended. However, each case is different and is judged accordingly.

Unmarried or Cohabiting Partners

As with any applicant, the Court must first establish eligibility. For a cohabitee to be eligible, they must have lived in the same household as their partner, “husband and wife”, for two years immediately before their partner’s death.

Subject to this, under the terms of the Inheritance Act, unmarried partners or cohabitees are only entitled to the lower standard of provision from an estate. This means the claim is limited to what is strictly necessary for their maintenance rather than what is reasonable.

As you might expect, the Court assesses each case on its own merits but will consider the cohabitees:

1. Age
2. Length of cohabitation
3. Contribution to the care and welfare of their partner’s family
4. Financial needs and resources
5. Medical conditions, including any obligation owed to the cohabitee

Awards

Awards come in many guises. For example, the Court may order the sale or transfer of a property or the lifetime right to occupy. They may also consider awarding a one-off payment or regular sums. This approach is often used for vulnerable individuals struggling with access to large sums.

Remember, the Court is not there to make awards to those disappointed with the Will or those who can’t demonstrate the need for maintenance.

Our Advice

It’s no wonder that the number of Inheritance Act claims has risen. According to a survey (as far back as 2018), almost 80% of adults with children aged four or under didn’t have a Will, and only 30% of cohabiting adults “living as married” had one.

And worryingly, the Government is aware that cohabiting partnerships are also rising and are under-protected under intestacy laws. Yet in the autumn of 2022, they rejected a series of cohabitation reforms recommended by the Women and Equalities Committee. Their approach, they stated, would continue to be “cautious”.

So, to ensure your partner is adequately provided for, make a Will. Otherwise, your partner may face making a complicated, costly, and stressful claim under the Inheritance Act.

Take early specialist advice if you have a claim or are facing a potential claim against an estate in which you have an interest. Contact our specialist team today. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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