Surge in Inheritance Disputes in England and Wales Due to Asset Boom and Dementia

Inheritance disputes on the rise in England and Wales due to boom in asset prices and dementia

A surge in the number of inheritance disputes heading to court in England and Wales has been attributed to a boom in asset prices and the increased prevalence of dementia. Lawyers have warned that family squabbles over wills are on the rise as unscrupulous relatives, partners, and even professional carers take advantage of vulnerable elderly people, while the stakes are higher for heirs due to higher value estates.

Charles Lloyd, head of private client disputes at law firm Macfarlanes, stated, “There are ever-increasing numbers of these disputes.” In England, individuals can leave their estate to whomever they choose under the principle of “testamentary freedom,” unlike jurisdictions where inheritance shares are set by law.

Recent cases in the High Court include disputes over an 85-year-old woman’s estate, where her sons accused their sister of manipulating their mother to inherit her house, and another case where relatives alleged that a daughter controlled their elderly family member’s decisions regarding the estate.

While successful claims in these disputes can be difficult to bring, some solicitors are calling for tougher laws to reduce the scope for financial abuse. Charlotte Fraser, partner at law firm Farrer, highlighted the impact of the coronavirus pandemic, which limited access to elderly people by their relatives and medical professionals, giving exploiters greater latitude.

The Law Commission has noted increasing concern about “predatory marriages” and is considering responses to a consultation on the rule that an existing will is invalidated through marriage or civil partnership. The number of probate disputes brought before the High Court has more than doubled in recent years, with a sharp increase in legal fights over finances in the Court of Protection.

Disputes can arise due to various factors, including dementia, sibling rivalry, and the uneven distribution of wealth between generations. The average British household’s net assets have increased significantly, leading to larger estates and more significant financial stakes in inheritance disputes.

While inheritance tax revenues have doubled over the past decade, cost of living pressures and lifestyle expectations can also fuel disputes. However, disputes over inheritance are rarely just about finances, as emotions and family dynamics play a significant role.

Legal options for claimants in inheritance disputes include challenging the validity of a will on grounds such as “fraudulent calumny” and “want of knowledge and approval.” However, persuading a court can be challenging and expensive, with potential tragic outcomes for families involved.

To avoid future disputes, experts recommend having open conversations with heirs about how assets will be divided to prevent surprises and reduce the likelihood of legal battles.