Inheritance disputes reaching a five-year peak in Britain, with nearly half of the population ready to take legal action over estate matters.
Rise in Intestate Estates Fuels Concerns Over Inheritance Disputes
An escalating number of estates without a valid will has resulted in a 17% surge, reaching a five-year high of 51,140 in the past year, as per Ministry of Justice data. This trend suggests a potential rise in family feuds over inheritances.
The term 'intestate estates' refers to those where the deceased did not leave a will, and the court may need to appoint an administrator to manage the estate's assets. In such cases, the distribution of assets follows strict intestacy rules, which may not align with the deceased's intentions.
These rules might lead to assets passing to estranged spouses, distant relatives, or even the Crown, if no surviving relatives can be traced. David Lunn, managing associate at TWM Solicitors, emphasizes that dying without a valid will can result in significant distress, confusion, and outcomes at odds with the deceased's wishes.
The survey by Level Group reveals that nearly two in five people in the UK (38%) are prepared to take legal action if they consider their inheritance unfair or not as expected. Some (8%) are willing to dispute, even anticipating a potential loss. Younger generations, particularly those aged 25 to 34, are more inclined to challenge a will (60%), with men more likely to do so than women (44% vs 34%).
Studies by the Ministry of Justice (MoJ) indicate a steady increase in probate disputes ending up in court, with a 37% rise over the past decade. In 2023, the average number of probate disputes per month was 867, climbing to 992 from January to September 2024. Additionally, the number of probate cases taking longer than one year has increased by 518% from 2019 to 2024.
These findings underscore the importance of proactive and comprehensive estate planning to prevent disputes and delays, ensuring a more seamless probate process and minimizing family uncertainty. Failure to do so may result in unforeseen challenges and lengthy proceedings.
Understanding intestacy rules is crucial, as they dictate asset distribution when no will is present. Intestacy laws prioritize blood relatives and make little provision for unmarried or unregistered partners. If the deceased is married or in a civil partnership, their spouse or partner inherits the first £322,000; the remaining assets are divided equally between the spouse and children. If there are no surviving spouse or children, the order of inheritance follows a hierarchy based on family relationships.
Proper estate planning, including a carefully drafted will, can help mitigate potential disputes, enforce the deceased's wishes, and prevent unwanted consequences of intestate succession. A well-drafted will ensures assets are distributed according to the deceased's wishes, minimizing the risk of legal challenges and ensuring peace of mind for both the deceased and their loved ones.
- To prevent potential disputes and lengthy proceedings, it's advisable for individuals to engage in proactive and comprehensive estate planning, which includes drafting a well-thought-out will.
- In light of the rising number of intestate estates and subsequent inheritance disputes, understanding intestacy rules is crucial, as they dictate asset distribution when no will is present.
- Given the increase in probate disputes ending up in court and the lengthy proceedings that may ensue, it's imperative to ensure personal assets, such as personal finance, property, and business, are managed appropriately through personal-finance planning and a professionally drafted will.
