WAE 7 - IPFDA Flashcards
(15 cards)
What are the three key conditions to apply under IPFDA?
- The deceased must be domiciled in the UK at the date of death.
- The applicant must be an eligible person (specific categories).
- The claim must be made within 6 months of the grant of representation.
What is domicile, and how does it affect IPFDA claims?
Domicile is different from nationality or residence.
Most individuals born and residing in the UK are UK-domiciled.
There are three types of domicile:
* Domicile of origin – determined at birth from father’s domicile if parents were married or mother’s if not
* Domicile of dependency – if relevant parent changes domicile this will also apply to children’s domicile if under 16
* Domicile of choice – by emigrating with the intention of never returning
Who are the eligible applicants under IPFDA?
- Spouse/Civil Partner.
- Former spouse/civil partner (not remarried/re-partnered).
- Cohabitor (lived with the deceased for at least 2 years before death).
- Child of the deceased (including adopted children).
- Person treated as a child by the deceased.
- Any person being maintained wholly or partly by the deceased immediately before death.
What is the deadline for making an IPFDA claim?
6 months from the date of the grant of representation.
Can the court extend the deadline for an IPFDA claim?
Yes, but the burden is on the applicant to show special reasons. The court considers:
* Whether negotiations started before the deadline.
* Whether the estate was already distributed.
* Whether refusing the claim would leave the applicant without financial recourse.
What is the main ground for an IPFDA claim?
- The will/intestacy rules fail to make reasonable financial provision for the applicant
What assets form part of the ‘net estate’ under IPFDA?
- The normal succession estate.
- Property where the deceased held a general power of appointment (not exercised).
- Statutorily nominated property or DMC gifts (minus IHT).
- Severable share of joint tenancy (if ordered by court).
- Property disposed of during lifetime if the court invokes anti-avoidance powers.
What factors does the court consider when deciding an IPFDA claim?
- Competing interests of intended beneficiaries.
- The original wishes of the deceased.
- The size and nature of the estate.
- The applicant’s financial needs/resources.
- Any obligations/responsibilities the deceased had towards the applicant.
- Any disability of the applicant or beneficiaries.
What orders can the court make under IPFDA?
- Lump sum payment.
- Regular periodical payments.
- Transfer of property.
- Settlement of property.
- Acquisition of property for transfer.
- Variation of marriage/civil partnership settlements.
- Variation of trusts.
When does an IPFDA order take effect?
It takes effect from the date of the deceased’s death, meaning it is read back for tax purposes.
How is the assessment of reasonable financial provision carried out?
An objective assessment based on statutory criteria, considering the applicant’s financial needs and resources.
Standard of provision for spouses/civil partners and former spouses?
- For spouses/civil partners, standard of financial provision has to be reasonable, regardless of maintenance.
- The court may apply same standard to:
1. former spouse/civil partner who was not remarried,
2. divorce happened within 12 months of death, and
3. no order of financial provision was made - Court must consider:
1. Applicant’s age & duration of marriage.
2. Applicant’s contributions to the welfare of the family.
What factors does the court consider in cohabitee claims?
- Length of cohabitation.
- Applicant’s financial contributions to the family/home.
What factors does the court consider in child claims?
- Training/education needs of the child.
- Whether the deceased maintained the applicant before death.
- Whether the deceased assumed responsibility for the child’s maintenance.
- Any other person’s liability to maintain the child.
What does the court consider for dependents who were maintained by the deceased?
- Length & basis of maintenance before death.
- Whether the deceased assumed responsibility for the applicant’s maintenance.
