If an application under the Inheritance (Provision for Family and Dependants) Act 1975 is successful, the Court can order a range of awards, including a lump sum or periodic payments, the transfer of property, or a lifetime right to live in a property (with the property reverting to the estate upon the applicant’s death).
Parties are often able to reach an agreement prior to an inheritance dispute trial, which can save thousands of pounds in legal costs. This case study illustrates the importance of considering tax implications when parties agree a settlement which involves a life interest in a property.
Resolving life interest settlement disputes a case study
A recent referral highlighted some interesting estate complications and not just in terms of tax.