Case Law Update: Charity Legacy Overturned

In the recent case of Ilott v Mitson, the Court of Appeal made an increased award of £163,000 to Mrs Ilott’s estranged daughter, despite Mrs Ilott’s will leaving her entire estate – valued at £500,000 – to three charities: the Blue Cross, RSPCA and RSPB.

Under the terms of the Inheritance (Provision for Family and Dependants) Act 1975 (the Act), qualifying family members may apply for an order on the grounds that the distribution of the deceased’s estate does not make ‘reasonable financial provision’ for them. Family members relying on the Act (with the exception of spouses/civil partners) are generally only successful in their claim if they receive some form of maintenance from the deceased, prior to their passing. The facts of this case make clear that the daughter was estranged, not dependant on her mother in any way and that there was a validly executed will in existence which deliberately omitted her inclusion. Despite this, the daughter made a successful claim in reliance on the Act which resulted in the court making an award for her maintenance. Crucially, the court found that the daughter’s living expenses should be met without affecting the state benefits on which she relied, and that each of the three charities had no demonstrable need or expectation of receiving the legacy.

This has raised concern within the sector over the impact on the receipt of charity legacies and the potential for charities to be embroiled in an increasing number of similar claims in the future, particularly where the charity concerned has no pre-existing relationship with the testator during their lifetime.

For further information on charity legacies and fundraising law please contact our charity law team on 01895 207809 or email charities@ibblaw.co.uk.