WAE 7 - IPFDA Flashcards
What are the three key conditions to apply under IPFDA?
- The deceased must be domiciled in the UK at the date of death.
- The applicant must be an eligible person (specific categories).
- The claim must be made within 6 months of the grant of representation.
What is domicile, and how does it affect IPFDA claims?
Domicile is different from nationality or residence.
Most individuals born and residing in the UK are UK-domiciled.
There are three types of domicile:
* Domicile of origin – Inherited from father (if parents were married) or mother (if not).
* Domicile of dependency – A child under 16 inherits the domicile of their parent if the parent changes domicile.
* Domicile of choice – Acquired by permanently emigrating with no intent to return.
Who are the eligible applicants under IPFDA?
- Spouse/Civil Partner.
- Former spouse/civil partner (not remarried/re-partnered).
- Cohabitor (lived with the deceased for at least 2 years before death).
- Child of the deceased (including adopted children).
- Person treated as a child by the deceased.
- Any person being maintained wholly or partly by the deceased immediately before death.
What is the deadline for making an IPFDA claim?
6 months from the date of the grant of representation.
Can the court extend the deadline for an IPFDA claim?
Yes, but the burden is on the applicant to show special reasons. The court considers:
* Whether negotiations started before the deadline.
* Whether the estate was already distributed.
* Whether refusing the claim would leave the applicant without financial recourse.
What are the two main grounds for an IPFDA claim?
- The will did not make reasonable financial provision for the applicant.
- The intestacy rules fail to make reasonable financial provision.
What assets form part of the ‘net estate’ under IPFDA?
- The normal succession estate.
- Property where the deceased held a general power of appointment (not exercised).
- Statutorily nominated property or DMC gifts (minus IHT).
- Severable share of joint tenancy (if ordered by court).
- Property disposed of during lifetime if the court invokes anti-avoidance powers.
What factors does the court consider when deciding an IPFDA claim?
- Competing interests of intended beneficiaries.
- The original wishes of the deceased.
- The size and nature of the estate.
- The applicant’s financial needs/resources.
- Any obligations/responsibilities the deceased had towards the applicant.
- Any disability of the applicant or beneficiaries.
What orders can the court make under IPFDA?
- Lump sum payment.
- Regular periodical payments.
- Transfer of property.
- Settlement of property.
- Acquisition of property for transfer.
- Variation of marriage/civil partnership settlements.
- Variation of trusts.
When does an IPFDA order take effect?
It takes effect from the date of the deceased’s death, meaning it is read back for tax purposes.
What is the court’s first question when considering an IPFDA claim?
Did the deceased fail to make reasonable financial provision for the applicant?
How is the assessment of reasonable financial provision carried out?
An objective assessment based on statutory criteria, considering the applicant’s financial needs and resources.
How does the standard of provision differ for spouses/civil partners?
- For spouses/civil partners, financial provision must be reasonable, whether or not the applicant was financially maintained.
- The court may apply a divorce comparison:
1. What would the applicant reasonably have received in a divorce settlement?
1. Factors considered:
Age & duration of marriage.
Contributions to the welfare of the family.
What factors does the court consider in cohabitee claims?
- Length of cohabitation.
- Applicant’s financial contributions to the family/home.
What factors does the court consider in child claims?
- Training/education needs of the child.
- Whether the deceased maintained the applicant before death.
- Whether the deceased assumed responsibility for the child’s maintenance.
- Any other person’s liability to maintain the child.
What does the court consider for dependents who were maintained by the deceased?
- Length & basis of maintenance before death.
- Whether the deceased assumed responsibility for the applicant’s maintenance.
What common factors apply to all IPFDA applicants?
- The applicant’s financial resources & needs (including future needs).
- The financial resources & needs of beneficiaries.
- The deceased’s obligations towards applicants & beneficiaries.
- The size and nature of the estate.
- Whether the applicant or beneficiaries have a disability.
- Any other relevant factors.
How does the court determine the size of an award?
- The applicant’s future financial needs are assessed.
- Divorce comparison for spouses – but no automatic assumption of a 50% share.
- Interests under discretionary trusts may not be considered reasonable provision.
What forms can an IPFDA award take?
- Lump sum payment.
- Regular maintenance payments.
- Transfer or settlement of property.
- Acquisition of property for transfer.
- Variation of trust/marriage settlements.
