What Happens When Your Common Law Partner Dies Without a Will?
Key Contact: Janice Powell
What You Need to Know About 1975 Act Claims for Financial Provision
Failure to execute a will (make it legally binding) can have unexpected (and sometimes drastic) consequences. Janice Powell, our head of wealth, probate and trusts disputes, tells a cautionary tale.
Arlo was the long-term partner and common law husband of Sasha. At the time Arlo moved in with Sasha, he owned minimal assets. Beyond his contribution from his wages to the food bills, Sasha had paid all bills and fully met the cost of their joint lifestyle and provided accommodation for Arlo.
When they were both retired, and Arlo was aged 67, Sasha sadly died of cancer.
Sasha had shown clear intent of her intention to maintain Arlo by having prepared a home-made Will leaving everything to Arlo. However, in legal terms she died “intestate” (meaning she did not have a valid will). This is because her home-made will was invalid, as it was not executed.
Sasha had never married or had children. She was adopted and had no siblings to her knowledge. Accordingly, when she died, there were no known relatives to inherit.
However, intestacy rules meant that Arlo did not inherit. Instead, under the rules of the Inheritance (Provision for Family and Dependants) Act 1975 (the “1975 Act”), he was obliged to make a claim for reasonable financial provision against Sasha’s estate. As there were no known relatives, the estate would usually pass to the Crown. However, in view of Arlo’s 1975 Act claim, he was likely to receive the bulk of the estate and payment of his legal costs.
Unfortunately for Arlo, an heir hunter firm uncovered the existence of 12 remote relatives – two of whom lived in Australia – all of whom stood to receive a windfall inheritance from a lady they never knew existed.
Arlo had to endure the stress and upset of learning that his financial position was not secure, and the home in which he had resided for nearly 30 years, owned by Sasha, must be sold to pay the significant sum of inheritance tax due. He also had no money to pay solicitors fees.
We advised Arlo that he would be able to recover monies from the estate to enable him to obtain accommodation and monies to live on. We acted on a deferred payment of costs agreement on this expectation. Arlo’s claim was settled at mediation – but he had to move out of his home to enable it be sold to pay the inheritance tax and for his damages and costs claim.
Had Sasha executed a valid will via a solicitor or will writer, Arlo would have inherited her estate and would not have been forced to see it depleted by legal costs and shared with 12 distant relatives Sasha had never met. If they had married, Arlo would have inherited all her estate and married couples tax reliefs would enabled him to avoid paying inheritance tax.
No doubt Sasha would have been upset to see the effect of her failure to execute a valid will.
For advice regarding contentious probate issues, contact Janice Powell or Emily John.
