Financial Dependency Loss and Property Sale
Under Section 3 of the Fatal Accidents Act 1976 (FAA 1976), financial dependency claims must be based on actual financial support provided by the deceased before death. Courts have strictly interpreted dependency under the
A fatal accident claim under the FAA 1976 is designed to compensate dependants of the deceased when death results from another’s wrongful act, neglect, or default. However, not all financial losses arising from the death are recoverable.
A common question is whether a son who inherits a property from a deceased parent can claim the costs of selling that property as part of a fatal accident claim. The short answer is no. This article explains why, with reference to key legal principles and case law.
What Can Be Claimed Under the Fatal Accidents Act 1976?
The Fatal Accidents Act 1976 provides a statutory framework for recoverable damages, which include:
- Loss of Financial Dependency – Compensation for dependants who relied on the deceased for financial support. (Section 3)
- Bereavement Award – A fixed sum (£15,120 as of 2020) available to certain relatives. (Section 1A)
- Funeral Expenses – Recoverable if incurred by the claimant. (Section 3(5))
However, the costs of selling an inherited property do not fit into any of these categories.
Why Can’t You Claim the Cost of Selling the Deceased’s Property?
1. No Financial Dependency Loss
Under Section 3 of the FAA 1976, financial dependency claims must be based on actual financial support provided by the deceased before death. Courts have strictly interpreted dependency as covering:
- Loss of income or financial support.
- Loss of household contributions (e.g., DIY, childcare, transport).
- Loss of gifts or allowances the deceased provided regularly.
Why the cost of sale does not qualify:
- Selling a property is an administrative cost, not a financial dependency loss.
- The expense arises post-mortem and is not linked to the deceased’s pre-death financial support.
In part and to an extent the principle to a business asset but a dependent may be able to make a dependency claim for a loss of a business as the FAA 1976 provides compensation for actual financial losses, such as loss of earnings, loss of benefits in kind, and funeral expenses.
2. Bereavement Award Does Not Cover Additional Expenses
The bereavement award is only available to:
- A spouse/civil partner of the deceased.
- Parents of an unmarried deceased child under 18.
Why the cost of sale does not qualify:
- Sons and daughters of the deceased do not qualify for bereavement damages.
- The award is a fixed amount (£15,120), not based on specific financial losses.
3. Funeral Expenses Are Limited
The Fatal Accidents Act 1976 allows for reasonable funeral expenses but not for managing an inherited estate.
Why the cost of sale does not qualify:
- Property-related expenses are not funeral costs.
Relevant Case Law
Several cases confirm that only dependency-based losses are recoverable under the FAA 1976.
1. Capps v Miller [1989] 1 WLR 839
This case reinforced that financial dependency must be clearly established. Courts will not award damages for losses incidental to dealing with the deceased’s estate.
2. Davies v Taylor [1974] AC 207
The House of Lords confirmed that claims under the FAA 1976 require real, quantifiable dependency, rejecting speculative losses.
3. Cox v Hockenhull [2000] PIQR Q65
This case reaffirmed that damages must reflect a genuine pecuniary loss rather than administrative costs incurred post-mortem.
4. Knauer v Ministry of Justice [2016] UKSC 9
The Supreme Court addressed dependency calculations and confirmed that post-death estate management costs are not recoverable under FAA 1976.
Alternative Legal Avenues for Recovery
Although the FAA 1976 does not allow recovery of property sale costs, other legal options may exist:
1. Estate Claims under the Law Reform (Miscellaneous Provisions) Act 1934
If the deceased incurred costs before death (e.g., legal fees related to selling the property), these might be recoverable under the Law Reform (Miscellaneous Provisions) Act 1934. However:
- The claim must be brought by the estate, not an individual.
- Post-death expenses do not qualify.
2. Separate Negligence Claim (Rare Cases)
If the defendant’s actions directly caused a delay in selling the property, there may be a separate negligence claim. However, this is difficult to prove.
Conclusion
A son inheriting a property cannot claim the cost of selling that property under the Fatal Accidents Act 1976 because:
✅ The Act only covers financial dependency, bereavement awards, and funeral expenses.
✅ Post-mortem costs are not dependency losses.
✅ Case law confirms that estate administration costs are not recoverable.
If a claimant seeks reimbursement, they may need to explore estate claims under the Law Reform (Miscellaneous Provisions) Act 1934 or consider whether negligence caused the loss.
For more legal advice on fatal accident claims, visit our Fatal Accidents Claims Page.
