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A Conditional Fee Agreement (CFA) is an arrangement between a lawyer and their client where the lawyer charges little or no fees if the case is unsuccessful. However, if the case is successful, the lawyer charges a ‘success fee,’ usually a percentage of their normal rates.

In a key decision in the case of Hirachand v Hirachand [2024] UKSC 43, the Supreme Court ruled that a CFA success fee cannot be recovered as part of a claimant’s award for financial provision under the Inheritance (Provision for Family and Dependants) Act 1975.  This overturned earlier decisions by the trial court and Court of Appeal, which had allowed partial recovery of success fees.

Practically, this means claimants seeking financial provision can still enter into CFAs with their lawyers but will need to bear the success fee themselves, as it cannot be recovered from the deceased’s estate.

While this decision brings clarity for executors and beneficiaries, preserving estates from being reduced by success fees, it may deter claims from those unable to fund legal costs upfront.

If you’re facing inheritance disputes, getting expert legal advice is key to protecting your interests and resolving the issue smoothly. Please contact one of our Inheritance Dispute experts today.