How do the Notional Estate Laws Affect Asset Distribution after Death?
Many people think that if they write a will in accordance with the general rules, their requests will be honoured following their death, come what may. In this case, some people may seek to "adjust" the size of their estate prior to their death to make sure that a particular individual does not benefit from the distribution post-mortem. Yet there is every reason to be cautious in this situation as a court has got some specific powers that could allow them to reverse those changes. If you've been left out of someone's will, feel that you should have been included and can now see that the estate is smaller than it was, what can you do?
Family Provisions
An estate owner may want to ensure that a family member does not benefit following their death for one reason or another. They may realise that that person had what is known as a "family provision claim" and would ordinarily benefit from their estate after death. However, they may want to be creative with their estate so that there won't be as much to distribute when they are gone.
Notional Estate
In this situation, they may transfer a valuable asset to another party as a gift. Certainly, this would be within their rights in ordinary circumstances, even though most people would expect to get some kind of remuneration in return. But if a court is brought into the matter after their death, they may assume that said asset transfer was made to block out someone with legitimate family provision claims. In this case, they may be able to treat that transaction under the notional estate laws and actually bring it back into the asset pool.
Taking Back Property
If a court decides to do this, it may have the right to seize the property from the person it was given to, and that individual will have no recourse. However, if the asset was actually sold to them at way below market value, they will typically be able to recover that money.
Redistribution
When the property re-enters the estate, the court will decide how to distribute it. They'll take into account the needs of everyone else who is already listed on the will but will certainly consider your needs under the family provision claim.
Getting Advice
Bear in mind that there are specific rules involved here, especially when it comes to timing. So, to find out if you can make a claim under the circumstances, talk with a lawyer who specialises in wills for their advice first.
Reach out to a law firm that handles wills for more information.