BTTJ warns that family carers could seek compensation after landmark legal ruling 

Litigation law specialists at Warwickshire law firm Brindley Twist Tafft & James (BTTJ) are predicting a further rise in claims from carers seeking compensation for voluntary arrangements after a landmark court ruling in an estate dispute. 

The prediction comes after a Bristol woman won a legal case meaning she is entitled to be paid £127,000 from her mother’s estate for caring for her in her final years. 

James Sawyer, a solicitor in BTTJ’s litigation team, said: “ A recent case, Rogers v Wills, provided a hugely significant High Court ruling which, upheld on appeal, will most probably lead to other claims. 

“This decision was a big shift in how the Court treats informal, undocumented care arrangements in families. 

“Here, the daughter reimbursed herself from her late mother’s estate having provided round the clock care for her for a few years. Her claim was also made on the basis of unjust enrichment, and that she had essentially preserved the value of the estate by the mother not going into formal care.” 

He explained that, generally, family acts are seen as “love and care” with no intention to create legal relations, and by extension, a contract. 

He said: “This case has now morphed this by recognising that informal arrangements can be enforceable. The daughter was reimbursed based on market value for care. 

“In practice, this has lowered the barrier for what constitutes a family agreement. I imagine that we will see a rise in these claims going forward, as people might try and push goodwill family acts into contractual obligations to be reimbursed.”

Manjit Kaur-Heer, senior litigation solicitor at BTTJ,  added:  “Contentious Probate claims about invalid Wills and Inheritance Act claims by disappointed beneficiaries already constitute an ever-expanding area of law.  Private Client and litigation Solicitors may need to review whether clients need to be asked about any existing, informal care set ups and warning over setting one up.

“It might be wise in future to advise clients that there is now a difference between helping out versus a genuine intention for that person to be compensated. However, as this precedent develops, legal practitioners will need to watch closely to see how the Courts handle similar claims moving forward.

“It is too early to say with certainty whether changing how we advise our clients is right, however, failure to document these intentions during the lifetime may spark post death litigation. It may become advisable to make a provision in a Will, although this itself could still be open to legal challenge.”

BTTJ has been providing legal advice in Warwickshire since 1797 and has offices in Coventry, Warwick, Balsall Common and Southam.