Rising Asset Prices and Dementia Fuel Inheritance Disputes in England and Wales: A Financial Times Report

Inheritance Disputes on the Rise in England and Wales Amid Asset Price Surge and Dementia Incidence

A recent report by The Financial Times has shed light on a concerning trend in England and Wales, where a significant increase in asset prices and a rise in dementia cases have led to a notable uptick in inheritance disputes making their way into courts.

Legal experts are sounding the alarm on the growing number of family conflicts over wills, with opportunistic individuals taking advantage of vulnerable elderly relatives. Charles Lloyd, head of private client disputes at Macfarlanes, has highlighted the concern among legal professionals, citing recent High Court cases where heirs have alleged manipulation and coercion by family members to secure a larger share of estates.

Cases involving elderly individuals being controlled or coerced into changing their wills have been on the rise, with solicitors emphasizing the difficulty of successful claims and calling for stronger laws to prevent financial abuse. The COVID-19 pandemic has further exacerbated vulnerabilities, as older individuals had limited access to support networks.

Probate disputes in the High Court have doubled over the past seven years, with an increase in legal battles over finances in the Court of Protection. Longer life expectancy, a rise in dementia cases, and disagreements over intergenerational wealth transfers have all contributed to the surge in disputes.

The average British household’s net assets have seen a 20% increase in real terms, reaching £302,500 by 2020. However, disputes often involve estates of much higher value, with wealth unevenly distributed between generations. Inheritance tax revenue is projected to exceed £7.2 billion this tax year, reflecting the growing value of estates.

Under English law, claimants have legal options to challenge the validity of a will on grounds such as “fraudulent calumny” and “want of knowledge and approval.” However, the process can be challenging and costly, leading to tragic outcomes for families involved.

Experts recommend having pre-emptive conversations about asset division to prevent future disputes and maintain family harmony during emotionally challenging times. By addressing these issues proactively, families can potentially avoid the turmoil and legal battles that often accompany inheritance disputes in court.