Thinking of bringing or defending an Inheritance Act claim? What you need to know

In a landmark ruling, the Supreme Court has clarified how ‘no win no fee’ agreements are to be treated in inheritance claims going forward.

The long awaited and unanimous judgment means that success fees paid to lawyers who succeed in ‘no win, no fee’ cases on top of their regular fees, can no longer be recovered from the defendant’s estate as part of an award.

Instead, claimants who have brought a successful claim under the Inheritance (Provision for Family and Dependants) Act 1975, will have to pay the success fee themselves, out of their award.

What is an Inheritance Act claim?

The Inheritance (Provision for Family and Dependants) Act 1975 allows certain categories of people – spouses, cohabitees, children or anyone maintained by the deceased – to claim for increased financial provision in certain cases.

This could be if someone close to them died without making reasonable financial provision for them in their Will, or if they died without making a Will and no provision is made under the rules of intestacy.

Obviously, for many people finding themselves in this position, money is extremely tight – hence the need for maintenance – and funding a claim can be extremely difficult. One way to get round this has been the option of entering into a ‘no win no fee’ or conditional fee agreement (CFA) with their legal representatives.

What are the implications of this Supreme Court ruling?

It has certainly divided opinion and led to calls for procedural reform for Inheritance Act claims.

Some say that it will hinder access to justice for some claimants, who due to their financial circumstances have no option but to pursue a claim using a ‘no win no fee’ or CFA agreement.

Others say it is a welcome move for beneficiaries of estates defending such claims, who won’t lose money from their inheritance as a result of a success fee being awarded, and that it could also lead to a reduction in speculative claims.

• The change to the law highlights the need for specialist legal advice including looking at the outset for an interim award to help with funding, as well as considering mediation as a high priority.

What happened in this Inheritance Act case?

Sheila Hirachand, aged 50, had lived with her father until she was 30 and been supported by him throughout her postgraduate studies.

In 2010 however, they fell out and she stopped speaking to both her parents. She developed mental health difficulties, was unable to work and existed on benefits with her two children.

When her father, Navinchandra Hirachand, died he left his widow, Nalini, his entire estate of £554,000. By this time, Nalini could not look after herself and lived in a care home costing £52,000 a year.

Shelia, facing extreme financial hardship, brought her case for maintenance on a ‘no win no fee’ basis.

At the High Court, she successfully argued that her father’s Will had not made adequate financial provision for her and was awarded £138,918 including an allocation of £16,750 towards the payment of her lawyers’ success fee as part of her financial needs.

Her mother, Nalini, appealed but the Court of Appeal upheld the decision.

However, the Supreme Court unanimously allowed the appeal, ruling that success fees do not constitute a ‘financial need’ under the 1975 Inheritance Act with Judge Lord Richards emphasising that the concept of maintenance within the Act should not be extended to cover litigation costs, particularly success fees.

As a result, the £16,750 success fee earmarked by the High Court and payable to Sheila as part of the ‘no win no fee’ agreement with her lawyers, will be deducted from the original award and must now be paid by Sheila personally.

What is the history of ‘no win no fee’ in Inheritance Act claims?

‘No win no fee’ agreements were first used in the Personal Injury field of litigation with claimants regularly expected to recover their success fee plus their regular costs as part of a costs order.

Success fees were intended to compensate the lawyer for the risk of getting nothing if they lost the case and for having to wait until the end of often lengthy litigation to get paid at all.

As they began to be used in Inheritance Act claims, lawyers agreed to take on a case acknowledging that they would not receive their fees upfront as usual or receive a success fee if they didn’t win the case.

The ‘no win no fee’ scenario was changed for personal injury claimants with the amendment of the Courts and Legal Services Act 1990 to prevent parties from recovering success fees as part of a costs order.

The Supreme Court ruling brings Inheritance Act ‘no win no fee’ claims in line with the principles of this Act.

What does this Inheritance Act ruling mean going forward?

‘No win no fee’ agreements will still exist and lawyers will still take them on.

What it does mean though, is that any award to clients who win their case will no longer include any contribution to the success fee. This will now have to be paid entirely out of the award received.

Early legal advice is, as ever, vital. Mediation to resolve disputes quickly and before they end up in court, will play an even more important role than it does currently.

An encouraging note is the Supreme Court’s approval of the use of Section 5 (1975 Inheritance Act) orders to fund a claimant’s legal costs in such proceedings, something which is expected to become widespread practice in the future.

Get in touch

If you want to contest or defend an Inheritance Act claim, please contact Wards Solicitors’ Contentious Trusts and Probate Team.

Our lawyers are members of the Association of Contentious Trusts and Probate Specialists (ACTAPS), the Society of Trust and Estate Practitioners (STEP), The Association of Lifetime Lawyers (previously Solicitors for the Elderly) and the Law Society’s Probate Panel. All demand an elevated level of expertise and up to date knowledge from their members.

Wards Solicitors has recently been named Regional Law Firm of the Year by Bristol Law Society and our Wills, Probate and Mental Capacity team has scooped the Devon and Somerset Law Society’s Private Client Team of the Year.

We are also praised by the Legal 500 Guide 2025 for our extensive probate disputes presence across the South West advising on contentious estate administration matters, Court of Protection issues and challenges to the validity of Wills with a large roster of clients.

Partners Ian Williamson and Emma Kerry are both highlighted as key lawyers.