The Supreme Court has recently made a long-awaited decision about legal costs in inheritance disputes.
The Inheritance (Provision for Family and Dependents) Act 1975
People use the The Inheritance (Provision for Family and Dependents) Act 1975 when they believe a will hasn’t made reasonable provision for them.
In a recent inheritance claim court case, Hirachand v Hirachand [2024], the Supreme Court delivered its landmark judgment in regard to the award of success fees in claims made under the 1975 Act. Those working in the legal sector, particularly in contentious probate, have been closely anticipating this ruling since the hearing in January 2024.
The Court ruled that for successful claims made under the 1975 Act, the financial award cannot include extra money to cover a success fee. A success fee is an extra fee you pay your solicitor if your case wins under a type of agreement called a Conditional Fee Agreement (CFA). This is also known as a “no win, no fee” deal.
The Court confirmed the law has clearly set this out for some time, and ruled that allowing people to claim these fees back would breach rules designed to keep legal costs fair and reasonable.
What does this mean for Inheritance Claims?
This ruling marks an important development for those pursuing claims under the 1975 Act, particularly when it comes to how these cases are paid for. It effectively aligns the funding of inheritance claims with the approach taken in other cases run under Conditional Fee Agreements (CFAs) and reflects a fair, ethical position.
Going forward, claimants using a CFA will need to pay any success fee from the amount awarded to them, rather than seeking additional funds from the estate. This decision is also likely to strengthen defendants’ positions, making it easier to defend less robust claims by highlighting potential cost risks for claimants.
To summarise:
- You can still claim for your basic legal costs in these cases
- You are not able to ask for extra money to cover a success fee as part of your inheritance award.
Our Contentious Trusts and Probate Team recently handled a case affected by this ruling and achieved a positive outcome for our client. The judge confirmed this wasn’t a new change in the law, but simply a clarification of how it applies.
How we can help
If you need advice about an inheritance dispute or legal costs, we’re here to help. Get in touch with our Contentious Trusts and Probate Team today.
Disclaimer
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The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional.