To what extent do individuals have freedom of disposition over their estate during their lifetime?
Under the law of England and Wales, individuals have freedom of disposition over their entire estate during their lifetime. There is no marital property or forced heirship regime to place restrictions on an individual’s freedom of disposition.
In the event of a divorce, the dissolution of a civil partnership or a legal separation, the English court has wide discretion to order the distribution of assets between a couple in order to achieve fairness in accordance with the principles of need, contribution and sharing, which may effectively restrict an individual’s freedom to deal with his or her assets as he or she chooses. In doing so, following case law in this area, the court will generally give effect to a valid marital property agreement entered into by parties to a marriage provided that, in all the circumstances, it is fair to do so. This is notwithstanding the fact that under the existing law of England and Wales, marital property agreements are not contractually enforceable.
To what extent do individuals have freedom of disposition over their estate on death?
Under the law of England and Wales, individuals have complete freedom of disposition over their estate. There is no system of forced heirship, nor are there any provisions for clawback of lifetime gifts.
The rules relating to jointly owned property will affect an individual’s ability to dispose of such property.
Individuals with specified relationships to a deceased may make a claim for provision or increased provision from his or her estate if they consider they have not been adequately provided for. However, this does not restrict the individual’s testamentary freedom.
England & Wales Guide
The England & Wales guide answers the principal questions for Private Clients relating to the law in this jurisdiction.
