Inheritance Disputes Surge: Families Clash Over Wills Amid Rising Asset Values

The landscape of inheritance disputes in England and Wales is experiencing a significant shift, with family feuds over estates reaching unprecedented levels. This surge is primarily attributed to escalating asset values, intricate family structures, and an increase in dementia cases among the elderly.

Official data obtained through a Freedom of Information request reveals that over 10,000 wills were contested in the previous year, marking the highest number in at least a decade. This statistic underscores the growing trend of estate-related conflicts within families.

Michael Henry, a legal expert from Nockolds law firm, points to soaring property prices as a key factor fueling these disputes. He notes, "People are increasingly relying on inheritances for major life expenses, such as purchasing property or funding retirement. When expectations of inheritance are not met, it often leads to legal challenges."

The complexity of modern family structures is another contributing factor. Emily Deane from the Society of Trust and Estate Practitioners highlights the impact of blended families, stating, "The rise in second marriages, step-children, and cohabiting couples has made contentious wills more common." According to the Office for National Statistics, approximately 1.1 million children in the UK are living in step-families, further complicating inheritance matters.

In England and Wales, the principle of testamentary freedom allows individuals to bequeath their assets as they wish. This concept, rooted in ancient Roman law, stands in contrast to countries like France, where testators are required to allocate a portion of their estate to direct descendants. However, this freedom is not absolute, and potential heirs can challenge wills under certain circumstances.

The process of contesting a will typically begins with lodging a caveat, which prevents the granting of probate – the legal document necessary for distributing an estate. In 2023, families applied for 10,409 caveats, representing a 43% increase since 2019.

Legal grounds for challenging a will include lack of testamentary capacity, undue influence, forgery or fraud, and failure to provide for dependents. Alison Parry of JMW law firm notes a rise in "undue influence" claims, particularly as people live longer and face cognitive decline.

"Although a number do settle early on with minimal costs, if all sides are willing, it is rare to get even a simple claim to a trial for less than around £45,000 in costs."

It's worth noting that will disputes can be financially and emotionally draining. Legal battles can stretch for years and incur substantial costs, potentially reaching hundreds of thousands of pounds for complex cases.

To mitigate the risk of disputes, experts recommend open communication about inheritance plans and creating a well-documented, clear will. Free Wills Month, held in March and October, offers individuals aged 55 and over the opportunity to have a simple will written, often in exchange for a charitable donation.

As digital assets like cryptocurrencies become increasingly important in estate planning, it's crucial to consider these in your will. Additionally, the concept of "living wills" for medical decisions has gained prominence in recent decades, further emphasizing the evolving nature of estate planning.

In conclusion, as inheritance disputes continue to rise, it's more important than ever to create a comprehensive, well-documented will and maintain open communication with potential beneficiaries to prevent costly and emotionally taxing legal battles.