A leading member of the team was instructed by brothers who wished to defend a claim brought by their stepmother against the Estate of their late father.
The Estate was valued at in excess of £2.5 million and a significant asset within the Estate was the family home – a bespoke property on the coast valued at over £1.5 million.
The stepmother was in her 70s and suffering from the early stages of dementia. She brought a claim on the basis that she wished to remain in the family home but had been left insufficient provision under the terms of her husband’s Will to allow her to afford her care needs. She had sold her own property and used those funds to pay for care during the dispute and had no income to rely on in the future.
Both of our clients had their own financial needs. It was accepted that the stepmother needed additional provision but disputed that she should stay in the family home as it was considered unsuitable for her, dangerous in places and in need of renovation and improvement works the Estate could ill afford. In addition the parties had to consider the impact on the stepmother of having to move out of the property so that essential works could be undertaken.
Proceedings were issued under the Inheritance (Provision for Family and Dependants) Act 1975 and the matter defended.
This was a complex case and required a report on condition and prognosis to be prepared to inform the parties as to the likely timescale for the progression of the stepmother’s dementia and the extent to which her care needs would be likely to increase over time. This information was important in assessing the actual needs of the stepmother and her ability to make out the claim she was bringing.
Ultimately we were able to resolve the claim at mediation with the Court later to approve the settlement reached between the parties.
The stepmother was persuaded to move out of the family home into smaller, more appropriate accommodation and for provision to be made for her ongoing care needs. Our clients retained a significant portion of the Estate, with a property portfolio being retained by them and a division of the net proceeds of sale of the family home to be paid over also.
Our clients’ costs were met from the Estate on this occasion.
This case shows the complex nature of the issues that may crop up. Our clients could see that their stepmother had a valid claim but the claim itself was put forward on a flawed basis given the actual needs of the stepmother and without consideration of the needs of our clients.
We were able to use mediation to avoid a costly trial and to achieve a resolution that provided for the needs of all parties.
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