Case Study – Inheritance Act claim

We acted for the son of the deceased, who had had two children, and had excluded our client from his will, with the estate being valued at between £800,000.00 to 1 million.

Our client, in his 50s, was the only child from the deceased’s first marriage. In later life, the deceased moved to Brazil and had a daughter (with another partner, who was Brazilian). Our client had a history of long-term drug abuse since his teenage years and had many phobias and medical issues.

There was a specific exclusion clause in the will giving drug addiction as the reason for our client’s exclusion.

After our client’s father had moved to Brazil, he became estranged from our client but after the birth of his daughter in Brazil, reconciled with our client and later promised him a ‘substantial sum’ in his will. We advised our client to bring a claim under section 1(1)(c) of the Inheritance (Provision for Family and Dependants) Act 1975 against the estate. The estate also included a flat in Brazil, relevant because there are forced heirship rules under the Brazilian Civil Code, meaning our client could not be legally excluded under Brazilian law because a parent is legally obliged to bequeath at least 25% of any property to their children.

Our instructions came from our client’s mother, who had lasting power of attorney to deal with his financial affairs and welfare due to his drug addiction and other medical conditions.

We agreed to deal with this case on a ‘no win no fee’ basis.

Our approach

The challenges and legal issues to be addressed included:

• We wanted to negotiate a settlement with the other beneficiary but she lived in Brazil and didn’t speak any English;

• We had to act quickly as the Executors had already obtained probate so the starting point was that we only had 6 months from the grant of probate in which to settle our client’s claim. We ultimately persuaded the Executors to agree to sign a standstill agreement pausing the limitation period to give us more time to agree a settlement with the Brazilian daughter;

• Establishing the position regarding foreign assets in Brazil and whether the deceased’s will dealt with his assets abroad.

• Gathering evidence about our client’s financial needs to be taken into account under the 1975 Act. This included how additional finance would help him get private funded medical care tailored to his specific needs.

• Ensuring that our client received reasonable financial provision as an adult child under the 1975 Act.

Outcome

Our costs and success fee under the ‘no win, no fee agreement’ were deducted from the settlement figure but our client still benefitted significantly as a result. His settlement money was put into trust with his mum and half-brother as Trustees, so they could manage this for him and use it to pay for private counselling and rehabilitation. They could also buy him new white goods or a bike when necessary.

Reaching such an agreement has had a huge impact on our client’s life, as he is now able to properly grieve the loss of his dad and can also enjoy the security of the trust fund which represented the ‘substantial amount’ originally promised to him.

The Brazilian half-sister ended up with the whole of the Brazilian flat which she rented out to provide a regular income and to support her university studies. She also received a lump sum. A suitable and cost effective outcome was achieved and all parties are now able to walk away from the matter without incurring further substantial legal costs.