The Rise in Inheritance Disputes: Navigating the Complexities of Wills and Family Dynamics

In recent years, inheritance claims and challenges to Wills have surged, affecting not only high-profile or wealthy families but also a broad spectrum of society. Ministry of Justice figures reveal a growing trend of disputes, presented in headline-grabbing cases such as that of Russian tycoon Vladimir Alekseyevich Scherbakov. When Scherbakov passed away in 2017, he left his entire £100 million estate to his Swiss-born partner Brigita Morina and their children. This decision was contested by the children from his previous marriage, leading to a high-stakes legal battle in the High Court, which ultimately ruled in Morina's favour.

It appears that everyone is fighting for a larger share of the inheritance pie. Ministry of Justice data shows that the number of inheritance disputes reaching the courts has more than doubled over the past decade. In 2021/22, 195 disputes were adjudicated by the courts, up from 145 in 2017 and just 80 in 2012. Experts suggest that these figures represent only the tip of the iceberg, as the majority of disputes are resolved out of court.

"A combination of factors is driving the soaring number of disputes," explained Kevin Horn, Private Client Partner at Warner Goodman LLP. "There is greater awareness of the right to challenge Wills, highlighted through news coverage of high-profile cases like that of the Scherbakov family, but also due to the changing shape of family structures. Blended families involving second marriages and stepchildren all contribute to the complexity."

"Importantly, the growth in contested Wills is also being fuelled by high property values. As the property-rich baby boomer generation passes on, there is more at stake and more to fight for."

This trend is supported by figures from HM Revenue and Customs, which is expected to record its highest-ever inheritance tax receipts for the current financial year, reaching approximately £7.5 billion. This surge reflects the growing size of estates being passed on.

The increase in dementia cases is also contributing to the rise in inheritance disputes. Challengers argue that individuals suffering from dementia may have lacked the capacity to make valid Wills or were unduly influenced by those caring for them.

In one recent case, Robert Harrington's daughter contested the validity of a Will that Robert signed at age 94, just a year before his death. In this Will, Harrington left his entire estate to his former paid carer, Guixiang Qin. Harrington and Qin had been married for only 11 months before his passing. The daughter claims that Qin exerted undue influence over her father and argues that Harrington lacked the capacity to make the new Will.

Kevin explained, "This case highlights the issue of 'predatory marriage,' where an individual marries a vulnerable or elderly person with the intention of benefiting financially from their estate upon their death. When families suspect undue influence, it's important to act promptly, though there are limitations on what can be done until undue influence is confirmed."

Assessing capacity is crucial, as a Will is invalid if the testator lacks testamentary capacity. If a retrospective assessment is conducted after the Will is signed but before the testator's death and indicates a lack of mental capacity, it may be possible to request the Court of Protection to approve a revised Will that removes the financial benefit granted to the influencer. However, family members often only discover the extent of the influence after the testator's death, leaving them with only one option, which is to challenge the Will's validity.

When a challenge is brought, the value of estates can be significantly impacted, and the distribution of assets may be delayed or disrupted as the dispute unfolds.

"Too often, the disputed funds are consumed by the costs of fighting the Will," Kevin added. "It's far better to organise affairs well in advance and seek ways to address potential family disputes proactively. For instance, using trusts to protect the interests of children from previous marriages can be an effective strategy, allowing a spouse from a second marriage to benefit without disinheriting the children involved."

"Another prudent consideration before mental capacity deteriorates is to establish a Lasting Power of Attorney. This legal arrangement designates how an individual's financial and health affairs should be managed if they experience a decline in mental capacity."

In conclusion, with the rising number of inheritance disputes, seeking proactive measures such as establishing trusts and Lasting Powers of Attorney can help mitigate potential conflicts. Addressing these issues in advance not only safeguards individual interests but also helps avoid costly and lengthy legal battles, ensuring a smoother transition of assets and minimising family conflicts.

For more information or advice on any of the topics mentioned above, please do not hesitate to reach out to Kevin Horn and our Private Client team on 01329 288 121 or email enquiries@warnergoodman.co.uk.

To learn more about our services, such as Will writing, probate, estate administration, powers of attorney, and trusts, please click here.