An issue that can arise is when a parent, who has made a will leaving their estate between their children equally but then later during their lifetime, makes a significant gift to one of their children. The sibling who didn’t receive a lifetime gift might argue that an allowance should be made during the distribution of the estate to ensure fairness.
What’s the legal position?
The law presumes that a parent did not intend to provide for the same child twice. This is based on a principle called ‘double portions.’
Essentially, if a parent gives their child a substantial gift while they are still alive, the principle means that it is presumed that the parent has given that child a ‘portion’ of their inheritance early.
To rebut this presumption, the court will consider extrinsic evidence such as:
1. A clause in the will stating that gifts made after a certain date should not affect the estate distribution or;
2. Parent’s actual intention: Evidence showing that the parent intended the lifetime gift to be in addition to the inheritance.
If the rebuttal is accepted, the child can receive the ‘double portion’; both the lifetime gift and their full inheritance from the will.
Including a clause in the will
Parents can include a clause in their will, known as a ‘hotchpotch’ clause, which ensures that any significant lifetime gifts to children are accounted for in the final estate distribution. This type of clause can assist the children to understand their parents’ intentions upon their death and can assit in preventing disputes among siblings.
Determining intentions without a clause in the will
If there is no hotchpotch clause, the court will have to determine the parent’s intentions at the time that they made the lifetime gift. The question being did the parent intend for this gift to be part of that child’s inheritance?
Each case is unique and fact specific. For example in the cases of:
– Re: Cameron (Deceased) (1999): The court ruled that school fees paid by a grandmother for her grandchild were deemed to be a ‘portion’ of her son’s share of her estate because there was no evidence to rebut the presumption of double portions.
– Re: Frost (Deceased) (2013) : The court ordered that gifts of £100,000 given to the testator’s daughters during his lifetime were not to be considered part of their inheritance because there was evidence that these gifts were meant to repay sums of money that they had incurred taking care of him and in part to help finance the future costs of his care, even though his son hadn’t received this amount.
Summary
The presumption of ‘double portions’ prevents a child who is a beneficiary of a will from receiving both a substantial lifetime gift from their parent and their full inheritance, unless there is clear evidence that the parent intended otherwise.
If you would like further advice on double portions or advice regarding any issues relating to a contested estate, please contact Kathryn Clare on 01244 305955 or kathryn.clare@sasdaniels.co.uk
An issue that can arise is when a parent, who has made a will leaving their estate between their children equally but then later during their lifetime, makes a significant gift to one of their children. The sibling who didn’t receive a lifetime gift might argue that an allowance should be made during the distribution of the estate to ensure fairness.
What’s the legal position?
The law presumes that a parent did not intend to provide for the same child twice. This is based on a principle called ‘double portions.’
Essentially, if a parent gives their child a substantial gift while they are still alive, the principle means that it is presumed that the parent has given that child a ‘portion’ of their inheritance early.
To rebut this presumption, the court will consider extrinsic evidence such as:
1. A clause in the will stating that gifts made after a certain date should not affect the estate distribution or;
2. Parent’s actual intention: Evidence showing that the parent intended the lifetime gift to be in addition to the inheritance.
If the rebuttal is accepted, the child can receive the ‘double portion’; both the lifetime gift and their full inheritance from the will.
Including a clause in the will
Parents can include a clause in their will, known as a ‘hotchpotch’ clause, which ensures that any significant lifetime gifts to children are accounted for in the final estate distribution. This type of clause can assist the children to understand their parents’ intentions upon their death and can assit in preventing disputes among siblings.
Determining intentions without a clause in the will
If there is no hotchpotch clause, the court will have to determine the parent’s intentions at the time that they made the lifetime gift. The question being did the parent intend for this gift to be part of that child’s inheritance?
Each case is unique and fact specific. For example in the cases of:
– Re: Cameron (Deceased) (1999): The court ruled that school fees paid by a grandmother for her grandchild were deemed to be a ‘portion’ of her son’s share of her estate because there was no evidence to rebut the presumption of double portions.
– Re: Frost (Deceased) (2013) : The court ordered that gifts of £100,000 given to the testator’s daughters during his lifetime were not to be considered part of their inheritance because there was evidence that these gifts were meant to repay sums of money that they had incurred taking care of him and in part to help finance the future costs of his care, even though his son hadn’t received this amount.
Summary
The presumption of ‘double portions’ prevents a child who is a beneficiary of a will from receiving both a substantial lifetime gift from their parent and their full inheritance, unless there is clear evidence that the parent intended otherwise.
If you would like further advice on double portions or advice regarding any issues relating to a contested estate, please contact Kathryn Clare on 01244 305955 or kathryn.clare@sasdaniels.co.uk