Disputes over wills and estates are increasingly common. In a modern world, family dynamics are becoming more complex, often resulting in disagreements over the way an estate should be handled. Many families are surprised to learn that, even when a person has made a will, their estate can still become tied up in legal claims for months or years.
Many estate disputes could have been avoided with clear planning and proper legal advice.
This article outlines the most common types of estate disputes, why they arise, and what people can do to reduce the risk of their loved ones facing unnecessary conflict.
Most common types of disputes
- Claims by children or other family members
Under the Family Protection Act 1955, certain family members can make a claim against the estate if they show the deceased’s will failed to make adequate provision for their maintenance and support. This can occur even when a will is entirely valid. We often see this occur where one child receives more than others, a child or grandchild is excluded, or a will does not reflect present family dynamics.
- Relationship property disputes of surviving partners
A surviving spouse or partner may choose to apply to the Court to divide relationship property under the Property (Relationships) Act 1976 instead of taking what has been provided for them in a will. This can significantly reduce the value of an estate and have flow-on consequences for the share received by other beneficiaries. Again, this can occur despite the existence of a valid will.
- Disputes about promises made during life
Claims are sometimes brought where someone alleges that a promise was made to them by someone who is deceased to reward them in their will in return for services or support. These disputes are often difficult for families as they may rely on recollections of conversations and informal arrangements.
- Challenges to will validity
Wills can be challenged where there is alleged to have been a lack of mental capacity at the time the will was signed, or undue influence by another person, or failure to properly follow legal formalities required for a will. This can again be difficult for families, as it often results in disputes between family members about the state of mind or actions of the deceased person.
- Disputes over interpretation of a will
Where a will or formal agreement is outdated or poorly drafted, this can leave key parts of the will open to different interpretations; a common source of avoidable estate disputes. Court claims arising from a dispute over the interpretation of a will can be a lengthy process, costing family members large amounts of money and delaying the distribution of the estate.
Practical steps to avoid disputes
- Obtaining proper legal advice
Estate planning should ideally go further than just drafting a will. A lawyer is able to advise you on how relationships may affect your estate, Family Protection Act claims that could be brought after your death, the appointment and role of executors under the will, whether the creation of a trust may be beneficial and how to clearly structure gifts and entitlements. Sitting down with a lawyer who has the full picture of your family, relationships and assets can result in your wishes being better protected. Importantly, this advice should be reviewed regularly, as the law can change alongside your personal circumstances.
- Keeping your will up to date
Many seniors leave behind wills written decades prior, often when their personal circumstances have changed, which can pose risks to ensuring that the deceased’s wishes at the time of their death are achieved. Your will should be reviewed following the entering or exiting of a relationship, the birth of children or grandchildren, acquiring or selling of assets or other changes in financial circumstances.
- Be clear and specific
A common cause for dispute is ambiguous wording within documents. Clear instructions which are well documented about who receives what, and when that should be made available to them, can significantly reduce the ability for another party to make claim to an asset.
- While clear and precise legal documents are essential, clear communication with family members is just as important. Taking the time to explain your intentions, the structure of your will, and what your loved ones can realistically expect from the administration of your estate can help manage expectations and reduce the risk of misunderstandings or resentment. These conversations, although sometimes uncomfortable, often prevent disputes by ensuring that decisions are not misinterpreted as unfair or unexpected after your death.Formally recording arrangements
If you have a someone in your life significantly involved with your care, or with your assets, and you have reached an agreement with them, it is important to document exactly what the agreement between you is. This could include where someone is providing you with care, working in a family business or residing in a property in which you have an interest. Where any agreement could allow for a claim for reward or entitlement, properly documenting the agreement can avoid future disagreements.
- Understand what you own
If assets are held by trusts or companies, you should seek legal advice around these arrangements to understand how these structures will interact with your will, as well as who controls and benefits from them.
Estate disputes place a significant emotional and financial burden on families, in what can already be a difficult time. They also reduce the value of the estate through legal costs and fees. With careful planning and proper advice, many of these disputes can be avoided. Taking time now to review your estate planning is an investment in certainty, fairness and peace of mind for those you leave behind.
If you require assistance with your will or estate planning, please contact the experienced team at Harmans, who will be more than happy to help.
