Rise in ill will for families
FAMILIES are increasingly tearing themselves apart over money, amid a surge in disputes concerning wills and inheritances.
Almost four in 10 have had fallouts with siblings and other family members over who gets what, according to a new study from specialist will writers Farewill.
With hundreds of thousands of pounds often at stake, inheritance disputes are mentally and financially draining, and risk leaving a poisonous family legacy. If they end up in court, legal fees can eat up bequests.
Farewill chief executive Dan Garrett said ever larger sums are at stake, as baby boomers pass on property and investments. “The over-50s now hold 70 per cent of the country’s wealth, equivalent to more than £6trillion.”
Many younger people are relying on an inheritance to buy a property. “The expectation of intergenerational wealth transfer is higher than ever, yet many people relying on the prospect of an inheritance may face disappointment,” he said.
The rise in divorce and “blended families” is also driving the surge in part, with second and sometimes third marriages adding to the complexities.
Garrett said dementia is another major driver as disgruntled family members argue that a will was not properly drafted due to failing mental capacity, or claim the deceased was coerced into making changes.
The single biggest trigger for disputes is that wills are out of date. “Nearly 15 million admit to never having updated their will. A further 14.5 million say they haven’t updated their will for more than 10 years.”
The 1975 Inheritance Act allows children, spouses and dependants to claim a more favourable distribution of an estate if they believe reasonable provision was not made for them. “This has led to numerous contentious cases, with the legal process destroying many relationships, sometimes for good,” Garrett said.
The Law Society recommends updating your will at least every five years. Take time to talk to family members, to manage expectations. “Conversations around death and the transference of assets are hard, but the consequences of doing nothing are often more damaging.”
Another factor driving the rise in disputes is that many people are writing their own wills. Mistakes are easy, and if a will has not been signed or witnessed correctly, it could be declared invalid. In that case it will be treated as if you died intestate, having never made a will. Your assets will be left to your next of kin in a fixed order, decided by the government, which may not reflect your wishes.
Anthony Belcher, director of the Society of Will Writers, said it is safer to seek professional help. “The outcome will be better than the DIY route, where problems typically don’t emerge until after the person who wrote it has died.”
This is an also an opportunity to take inheritance tax advice.
Legal advice is also essential to contest a will, said Matthew Morton, solicitor at Weightmans. “They can assess the strength of your case and guide you through the legal process.”
Contesting a will is serious and should not be taken lightly, he added.