Inheritance Act 1975

Question 1

Inheritance (Provision for family and dependants act 1975)

Answer 1

Allows a person to apply to the court for a benefit from the estate.

People who feel left out of the will or not satisfied with the amount they received.

Question 2

Who can claim under the inheritance act 1975

Answer 2

1. Spouse/CP
2. Former spouse/CP who has not remarried
3. Child
   4 any person who was treated as a child by the deceased e.g. step child
4. Who was maintained financially by the deceased
5. Living with the deceased for 2 years in the same household - for those who have not finalised their marriage/CP

Question 3

What is the time limit for making an application under the inheritance act 1975?

Answer 3

6months from the date of the grant of representation.

Application can be made before the grant is issued.

Question 4

How will the court determine whether the will/intestacy makes reasonable financial provision for the applicant?

Answer 4

1. Financial resources and needs.
2. Deceaseds obligations (legal and moral).
3. Size and nature of the estate.
4. Physical/mental disability.
5. Anything else which may be relevant e.g. conduct.

Question 5

What’s the difference between post death disclaimers and post death variations?

Answer 5

Post death disclaimers - if you reject the asset then it can pass as though the original beneficiary had pre deceased.

Post death variations - someone who has gained a benefit can direct where the benefit is to go and on what terms.

Question 6

What will happen in terms of inheritance tax if you was to disclaim of varie your legacy?

Answer 6

Would be regarded as PET and would be chargeable if you was to die within 7 years. - this would mean the legacy would be taxed twice (once on the testators death, then a second time on PET).

Question 7

How can you avoid having the legacy taxed twice?

Answer 7

Can have variations ‘read back’ into the will (as if the testator gave the legacy direct to the new beneficiary).

However to be satisfied, it must be
1. In writing and signed by the original beneficiary.
2. Within 2 years of deceaseds death.
3. Is not made for a consideration in money or money’s worth.
4. Must state s142 IHTA 1984 applies.