When a person makes a will, they think that their wishes would be put into effect and that their assets will go to the people and organisations that are mentioned in the will. It is this 'peace of mind' that is often stressed as one of the reasons to make a will.
We have reported in previous newsletters of a seemingly regular stream of cases where a will is challenged after someone has died.
It is possible for a family member to challenge a will under the Inheritance (Provision for Family and Dependants) Act 1979 if they consider that they have not had 'reasonable financial provision' made for them.
Melita Jackson left her entire estate in her will to three charities: the RSPB, Blue Cross and the RSPCA. She died in 2004. In 2007, Melita's estranged daughter, Heather Illott challenged the will claiming that she had been unreasonably excluded.
This was an argument worth having as Melita's estate was worth £486,000. She had obviously anticipated a problem because Melita left a letter with her will explaining why she was leaving her estate to the charities and not her daughter.
At first instance the Judge awarded Ms Illott £50,000, which the Court of Appeal increased to £163,000. Part of the reasoning for the latter decision was that Melita had no relationship with the three charities during her lifetime. Perhaps unsurprisingly, the charities took their appeal to the highest court - the Supreme Court.
The Supreme Court accepted that Ms Illott should have had some financial provision and reinstated the original £50,000 sum and left the rest to the charities in accordance with the will. The Court said:
"Charities depend heavily on testamentary bequests for their work, which is by definition of public benefit and in many cases will be for demonstrably humanitarian purposes.
More fundamentally, these charities were the chosen beneficiaries of the deceased. They did not have to justify a claim on the basis of need under the 1975 act, as Mrs Ilott necessarily had to do."
The sad consequence of such cases is that much if not all of the money in the estate can be spent on legal fees arguing who should receive it.
There are steps that you can take to try to protect your assets after death if you want to exclude close family members from your will.
To discuss this or other will related matters, contact us.