Costs, Legal Fees, and Dispute Resolution in Inheritance Claims

The Inheritance (Provision for Family and Dependants) Act 1975 allows certain categories of people to bring a claim for financial provision from an estate if they have been left out of a Will or have not received reasonable financial provision.

The Act applies in England and Wales and commonly allows claims by spouses, civil partners, children, cohabiting partners and financial dependants. The court will consider the claimant’s circumstances, financial needs and the size and nature of the estate when deciding whether financial provision may be appropriate.

Strict time limits apply to claims under the Act and, in most cases, a claim must be brought within 6 months from the date of the Grant of Probate or Letters of Administration.

There are various funding options available for clients pursuing or defending an Inheritance Act claim. Depending on the circumstances, these may include:

• Private funding
• Conditional Fee Agreements (“No Win, No Fee” agreements)
• Deferred payment arrangements
• Fixed fee advice for certain stages of the matter
• Litigation loans
• Legal expenses insurance
• “After the event” insurance

The availability of funding options will depend on the merits of the case and the likely value of the claim. 

Specialist legal advice should always be sought before entering into any funding arrangement.

Legal costs and cost risks are an important consideration in any Inheritance Act claim.

Although the unsuccessful party may be ordered to contribute towards the successful party’s legal costs, this is not guaranteed and the court has a broad discretion when making costs orders.

The court will often consider:

• The conduct of the parties throughout the litigation
• Whether parties complied with court rules and directions
• Whether reasonable settlement offers were made or rejected
• Whether parties attempted mediation or other forms of ADR
• The proportionality of the legal costs incurred

Even where a claim settles before trial, parties will usually negotiate responsibility for legal fees and litigation costs as part of the settlement agreement.

Understanding potential legal costs and cost risks at an early stage can help claimants and beneficiaries make informed decisions about whether to pursue, defend or seek to settle an Inheritance Act claim.

Mediation is one of the most common ways of resolving inheritance disputes. It involves an independent mediator helping the parties explore potential settlement options in a confidential and without prejudice setting.

Mediation can be particularly effective in inheritance disputes because it may allow families to maintain greater control over the process and may help preserve relationships where possible.

Benefits of mediation may include:

• Reduced legal costs
• Faster resolution of disputes
• Greater flexibility in settlement terms
• Privacy and confidentiality
• Avoiding the stress and uncertainty of court proceedings

Many inheritance disputes can be settled at or shortly after mediation, avoiding the need for a final hearing.