Martin Hall, Solicitor and Head of Litigation.
As you may recall from our article of 16 October 2024, certain individuals, including spouses, civil partners, former spouses or civil partners, cohabiting partners, children, and other dependants who were financially supported by the deceased, may bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975 (“the 1975 Act”) where they have been excluded from the Will or where the provision made for them is not reasonable.
A claim under the 1975 Act must be brought within six months of the date on which the Grant of Probate is issued. This is a strict statutory time limit.
In many cases, parties will wish to seek further information and explore settlement before commencing proceedings. Litigation is usually treated as a last resort in order to minimise costs. The six-month limitation period, however, is often too short to allow for meaningful negotiations and the exchange of relevant information.
In such circumstances, parties may enter into a standstill agreement. This is a contract by which the parties agree to suspend the running of the limitation period, giving them additional time to negotiate and gather information without the immediate pressure of issuing court proceedings.
What is a standstill agreement
A standard standstill agreement typically provides that the parties will not rely on any defence based on limitation, time bar, laches, delay, or similar arguments for a defined period. Time is effectively paused from the date of the agreement until one of the following occurs:
- the expiry of a notice period (for example, 28 days’ written notice to terminate the standstill); or
- the issue of court proceedings; or
- a longstop date.
Standstill agreements can also be varied or extended, provided that all parties agree.
Standstill agreements offer several advantages. They encourage sensible pre-action dialogue, reduce the risk of rushed and expensive litigation, and allow parties to explore settlement in a less adversarial atmosphere. They are particularly useful in 1975 Act claims, which often involve emotional family issues and complex financial information that cannot be gathered quickly.
Nevertheless, there are risks. A standstill agreement is a private contract and does not bind the court. If the agreement is poorly drafted or one party later challenges it, the claimant may still face difficulties.
For this reason, it is essential to take legal advice when negotiating and drafting a standstill agreement.
Its terms must be carefully drafted to reflect the specific circumstances and intentions of the parties. Importantly, the agreement must be entered into before the expiry of the six-month limitation period.
The Court of Appeal in Cowan v Foreman [2019] EWCA Civ 1336 confirmed that, even where a standstill agreement is in place, a claimant may still require the court’s permission to bring a claim out of time.
In summary, a well-drafted standstill agreement remains a valuable tool in 1975 Act claims when used carefully. It can help parties avoid unnecessary litigation, but it should never be treated as a complete safety net.
