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Financial Provision Claim

Also known as: Family Provision Claim, Inheritance Act Claim, 1975 Act Claim

Definition

A financial provision claim is a legal application under the Inheritance (Provision for Family and Dependants) Act 1975 to vary a deceased person's estate when insufficient provision has been made for eligible family members or dependants.

Understanding financial provision claims matters whether you're making a will or believe you've been inadequately provided for—the 1975 Act creates an important exception to testamentary freedom that can redirect inheritance regardless of what a will says.

What Does Financial Provision Claim Mean?

A financial provision claim is a legal mechanism under the Inheritance (Provision for Family and Dependants) Act 1975 that allows certain individuals to challenge the distribution of a deceased person's estate. The claim can be made whether the deceased left a valid will or died intestate (without a will), and succeeds when the court determines the estate fails to make "reasonable financial provision" for the applicant. The Act creates an important exception to testamentary freedom—the principle that you can leave your estate to anyone you choose—by recognizing moral and financial obligations the deceased owed to specific categories of people. Critically, "reasonable financial provision" has two different meanings under Section 1 of the Act: for surviving spouses and civil partners, it means appropriate provision in all circumstances (not limited to basic needs), while for all other eligible claimants, provision is limited to "maintenance"—covering everyday living expenses, not luxuries or comfortable lifestyles. As the Supreme Court clarified in Ilott v The Blue Cross [2017] UKSC 17, maintenance "cannot extend to any or everything which it would be desirable for the claimant to have" but equally "is not limited to subsistence level."

Six categories of people can make financial provision claims under Section 1(1) of the 1975 Act: spouses or civil partners, former spouses or civil partners who haven't remarried or entered a new civil partnership, cohabitees who lived with the deceased "as husband and wife" for at least 2 years immediately before death, children (including adult children), stepchildren or anyone treated as a child of the family, and anyone being wholly or partly maintained by the deceased immediately before death. You must start a claim within 6 months from the date the Grant of Probate or Letters of Administration is issued—this time limit is strictly enforced, and while the court has power to allow late claims in exceptional circumstances, this rarely happens. The court has wide discretion when evaluating claims, examining the Section 3 factors including the financial needs and resources of the applicant and all beneficiaries, any obligations the deceased had toward the applicant, the size and nature of the estate, any physical or mental disabilities, and any conduct that makes provision more or less reasonable. Anna, 52, lived with her partner David for 9 years in his house. When David died unexpectedly without a will, leaving a £380,000 estate (house worth £320,000, savings £60,000), his adult daughter from his first marriage inherited everything under intestacy rules. Anna faced homelessness but successfully claimed as a cohabitee under Section 1(1)(ba), receiving £140,000—enough to purchase a modest flat and provide 2 years of living expenses while she adjusted to independent living.

Financial provision claims carry significant practical and emotional implications. Legal costs are substantial—often consuming 20-30% of the estate's value—and success is never guaranteed, as the court has wide discretion when applying the Section 3 factors. Crucially, legal costs do NOT automatically come from the estate. The usual rule applies: the losing party pays the winner's costs, at the court's discretion. If you bring a claim and lose, you may have to pay both your own legal fees AND the estate's legal fees, which can total £50,000-£100,000+ in complex cases. Rebecca, 45, hadn't spoken to her mother Patricia for 20 years after a family argument. Rebecca was a successful solicitor earning £95,000/year, owned her home outright, and had substantial savings. Patricia died leaving her £600,000 estate to charity. Rebecca claimed as a child under Section 1(1)(c), but her claim failed—she could not prove maintenance needs as a financially independent adult. The court dismissed Rebecca's claim and ordered her to pay the estate's legal costs (£45,000) plus her own legal costs (£38,000), totaling £83,000. Most claims settle through mediation to preserve estate value and family relationships, though the threat of litigation alone can pressure estates into settlements. For will-makers, understanding financial provision claims is essential—proper estate planning with legal advice can minimize claim risks by making adequate provision for those with potential claims, or documenting reasons for limited provision. Anyone considering a claim should seek specialist legal advice immediately, as the strict 6-month time limit is rarely extended, and late applications require court permission with compelling justification.

Common Questions

"Who can make a financial provision claim against an estate?"

Six categories can claim: spouses or civil partners, former spouses who haven't remarried, cohabitees who lived with the deceased for 2+ years, children (including adults), stepchildren treated as family, and anyone financially dependent on the deceased. Each category has different eligibility requirements and standards of provision under the Inheritance (Provision for Family and Dependants) Act 1975.

"How long do you have to make a financial provision claim?"

You must start a claim within 6 months from the date the Grant of Probate or Letters of Administration is issued. The court can allow late claims in limited circumstances, but you need permission and must show good reasons for the delay. Time limits are strict, so act quickly if you believe you have a claim.

"What does 'reasonable financial provision' actually mean?"

For spouses and civil partners, it means provision appropriate to their circumstances (not just basic maintenance). For all other claimants, it's limited to maintenance—covering everyday living expenses, not luxuries. The court examines your financial needs, the estate's size, other beneficiaries' needs, and what the deceased owed you morally and financially when deciding what's reasonable.

Common Misconceptions

Myth: Anyone can challenge a will and make a financial provision claim

Reality: Only six specific categories of people can make a claim under the Inheritance (Provision for Family and Dependants) Act 1975: spouses or civil partners, former spouses/civil partners who haven't remarried, cohabitees who lived with deceased for 2+ years immediately before death, children (including adult children), stepchildren or those treated as children of the family, and anyone being wholly or partly maintained by the deceased immediately before death. Friends, distant relatives, and carers with no financial dependency cannot claim, regardless of moral expectations or promises made. The distinction between financial provision claims (limited eligibility) and will validity challenges (different grounds) confuses many people.

Myth: The estate automatically pays all legal costs if I make a claim

Reality: Legal costs do NOT automatically come from the estate. The usual rule applies: the losing party pays the winner's costs, at the court's discretion. If you bring a claim and lose, you may have to pay both your own legal fees AND the estate's legal fees, which can total £50,000-£100,000+ in complex cases. Even successful claimants may not recover full costs. Only in exceptional circumstances might the estate pay costs regardless of outcome, typically when the will-maker's conduct caused the claim. Some people assume estate disputes follow different cost rules than other civil litigation, but the "loser pays" principle applies.

  • Reasonable Financial Provision: The legal standard applied in every financial provision claim—the central concept the court evaluates when determining whether the estate has made adequate provision for the applicant.
  • Inheritance Act 1975: The enabling legislation that creates the right to make financial provision claims and establishes eligibility categories, time limits, and court powers.
  • Disinheritance: The circumstance that often triggers financial provision claims—when someone is completely excluded from a will, creating the situation where eligible claimants may successfully argue for reasonable provision.

Need Help with Your Will?

Understanding financial provision claims is crucial for effective will planning. If you have a complex family situation, second marriage, or are considering excluding someone, professional guidance helps minimize dispute risks after you're gone.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.