fbpx

Hirachand v Hirachand: Supreme Court provides clarification for Inheritance Act claims and Section 5 financial assistance

The Supreme Court’s recent decision in Hirachand v Hirachand [2024] UKSC 43 offers vital clarity for anyone considering a claim under the Inheritance (Provision for Family and Dependants) Act 1975 (“the 1975 Act”). While it confirms that success fees cannot be included in a claimant’s maintenance award, it also strongly endorses a valuable tool for those struggling to finance their claim: the power to seek interim financial support from the estate under Section 5.

Success Fees: The Status Quo Remains

For more than a decade, the position on success fees has been settled by legislation. Under “No Win No Fee” Conditional Fee Agreements (CFAs), your solicitor’s success fee—if you win—must come out of your own share of the award. This is not new. The Supreme Court simply confirmed that claimants cannot skirt this rule by asking the court to treat success fees as part of their general “financial needs” under the 1975 Act.

The Power of Section 5

Lord Richards, delivering the leading judgment with which all other justices agreed, specifically addressed the significance of Section 5 of the 1975 Act. As he noted, where an applicant is in immediate need of financial assistance and the estate has property available, the court may order interim payments subject to such conditions as it thinks fit.

Crucially, the Supreme Court confirmed the correctness of Weisz v Weisz [2019] EWHC 3101 (Fam), where it was established that these interim payments may be ordered to fund an applicant’s legal costs in the proceedings. This provides a powerful tool for those who might otherwise struggle to pursue their rightful claims.

The Reality of Success Fees

The Supreme Court’s decision about success fees on no win no fee Conditional Fee Agreements (CFAs) doesn’t fundamentally change the existing position for claimants. As Lord Richards explained, while success fees were historically unenforceable at common law, they became permissible through the Courts and Legal Services Act 1990. However, since the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), success fees have not been recoverable from opposing parties.

The position therefore remains as it was: while success fees may be payable to your solicitors if your claim succeeds, these are paid from your award rather than by the other side. This has been standard practice for over a decade.

Practical Support Through Section 5

The real value in the judgment lies in its confirmation of Section 5’s scope. For those considering an inheritance claim who are worried about funding, a key point emerges: the court can order interim payments where you have immediate financial need and the estate has available resources. As confirmed in Weisz (and now endorsed by the Supreme Court), these payments can cover legal costs.

This is particularly significant because, as Lord Richards noted, many claimants under the 1975 Act have “severe health problems” and may have “insufficient income or assets to support” themselves. Section 5 exists precisely to help such individuals access justice.

The Path to Resolution

The judgment also emphasises that inheritance claims remain firmly within the Civil Procedure Rules (CPR) framework. This means several things for potential claimants: first, as Lord Richards explained, these claims are subject to the usual rules about costs and settlement offers. This provides structure and predictability to the process; second, practitioners understand that most cases resolve without reaching a final hearing. The Court noted that Part 36 offers (formal settlement proposals) are “invariably made in these claims.” This reflects the reality that experienced practitioners focus on achieving fair resolutions efficiently.

Moving Forward with Confidence

For anyone considering an inheritance claim, several positive messages emerge from the Hirachand judgment:

  • The availability of interim financial support through Section 5 is firmly established
  • This support can extend to funding legal costs where appropriate
  • The framework for resolving claims remains clear and well-established
  • The position on success fees simply continues as before

Early Steps

Given the six-month time limit noted in the judgment for bringing claims under the 1975 Act, seeking early specialist advice remains crucial. A skilled solicitor can help evaluate:

  • Whether an interim award might be appropriate in your circumstances
  • The various paths to resolution available
  • The most effective funding arrangements for your situation, including No Win No Fee CFAs available from C-PAID’s panel of specialist inheritance dispute solicitors.

The Future of Inheritance Claims

The Supreme Court’s decision maintains certainty in inheritance claims while confirming valuable support mechanisms for those in need. For individuals facing financial hardship following a bereavement, Section 5’s confirmed scope provides reassurance that support can be available when needed most.

Contact C-PAID Today

If you’re considering making an Inheritance Act claim on a No Win No Fee basis or need advice on any aspect of contentious probate, don’t hesitate to contact C-PAID. Our team of specialist solicitors and paralegals is ready to provide expert guidance and support throughout your case.

Phone: 0161 532 8111

At C-PAID, we understand that dealing with contentious probate issues and inheritance disputes including contesting a will can be emotionally challenging as well as legally complex. Our compassionate and professional approach ensures that you receive not only expert legal advice but also the support you need during this difficult time.

Don’t let uncertainty about your inheritance rights hold you back. Contact C-PAID today for a confidential discussion about your case and how we can help you achieve the best possible outcome. With our expertise in contentious probate and Inheritance Act claims, combined with our commitment to client care, you can trust C-PAID to guide you through even the most complex inheritance disputes.