In February 2024, a report in The Guardian stated that there were an estimated 10,000 disputes relating to wills and the division of estates every year in England and Wales. The number of claims issued at court rose by over 5% between 2023 and 2024 and is set to continue increasing. B P Collins’ contested probate team considers the possible reasons why these disputes might be on the rise.
What types of claims are on the rise?
The claims included in The Guardian’s estimate figures related to “wills and the division of estates” but what does that mean? The most common claims relating to estates are:
- Disputes about the validity of Wills; and
- Claims for reasonable provision from an estate under the Inheritance (Provision for Family and Dependants) Act 1975.
There are other potential claims relating to estates including proprietary estoppel and claims against executors, but the above claims most commonly impact how an estate is distributed.
The Great Wealth Transfer
Inheritance has been in the news recently after the Autumn Budget was announced, which some are touting as a ‘raid’ on inheritances. However, whilst only about 4% of estates pay inheritance tax, this does not quite give the full picture of how much wealth is set to pass by inheritance in the next two to three decades.
By current estimates, by 2050 £7 trillion (yes, with a ‘T’!) is expected to pass by inheritance in the UK alone, and about $18.3 trillion worldwide will pass by 2030. This is an indication of just how much wealth is being held by the older generations.
According to research reported by Forbes in 2023, in the USA, millennials (born 1981 to 1996) held just 6.6% of the nation’s wealth, compared to the 50.4% held by Baby Boomers (born 1946-1964). The picture is similar in the UK.
With so much at stake, it is easy to see why more people are taking a potential risk on litigation if they have concerns about how an estate is being divided.
The Bank of Mum and Dad
Further, the wealth disparity between the ‘inheritors’ and their deceased family members can also impact claims because:
- The younger generation may need the money. In years gone by, a person inheriting from their parents might have thought of the inheritance as a nice gift. It may have afforded them the opportunity to go on a better holiday, buy their dream car, or upgrade their home. By the time they were inheriting (usually in their 50s) many people had already built their own wealth and had paid off or were close to paying off their mortgages for homes purchased in their early 20s. Now, the reality for many younger people is that they have no opportunity to pay off debts, including student debts, or get on the property ladder without an inheritance. Where there is a feeling of being mistreated (such as siblings being preferred in the will), previous generations may not have risked familial relations or the costs of entering into litigation, but now the stakes are much higher, and current generations may feel they have no choice.
- There’s more to argue over. Whilst litigation may not have seemed worthwhile for a sum which might buy you a nice holiday, a study in 2019 found that the average UK adult expects to receive an inheritance of £214,000 – and around 6% of those surveyed said they expected to inherit at least £750,000 – a sum which has risen significantly over the past two decades.
- Adults are now more likely to be maintained or funded by the parents much later in life. The average age for an adult to move out of their parents’ homes is around 25 compared with 21 in 2011. As one of the claims on the rise is a claim for reasonable provision, it is easy to see why parents funding their children’s lifestyle would lead to a claim for provision from an estate to continue that maintenance.
Aging populations
Another factor in the rise in claims is likely to be the age – and health – of our population. The average life expectancy in the UK is now 78.6 years for men and 82.6 years for women. This has increased from an average of 77 years since 2000.
Further, our aging population has led to a rise in conditions which affect mental capacity. For example, there are now an estimated 60 million people worldwide living with dementia.
The impact of an aging population is seen especially on claims relating to the validity of wills. Partly this is because a person must have capacity to make a will, and this is less likely to be the case if they are suffering with dementia or other conditions commonly associated with older age, which might impact mental capacity. More sinisterly, there are many claims arising from undue influence, fraud or forgery, or fraudulent calumny. In many cases, these types of claims follow a similar fact pattern which is:
- An elderly and frail testator, often with some sort of condition which impacts their capacity;
- Being dependent on their children (or sometimes carers, friends, neighbours, or other relatives);
- The testator being bullied, coerced, forced, tricked, or manipulated into changing their will.
This type of case is, sadly, all the more likely to occur with elderly people and therefore likely to rise as the population ages.
Modern families
Modern or blended families are much more common now than they were 20 or 30 years ago. Many of the cases of disputes involve second marriages or blended families. The common scenarios are:
- Second marriages where the children of the first marriage do not get on with the partner;
- Second marriages where one party has brought significantly more assets to the relationship, maintaining the spouse, but failing to make any or sufficient provision for them in their will;
- Disagreements between spouses about treatment of their respective children, particularly where one party to the marriage has brought significantly more assets to the relationship than the other; or
- Disputes amongst step-siblings about the division of joint assets.
Marriage is also becoming less common, with more couples opting to long-term cohabit rather than get married. Often, they don’t realise that this will impact the distribution of their estate and have tax consequences, sometimes leading to claims for provision from their estate.
Knowledge and awareness
The final potential factor is likely to be an awareness of the potential claims that can be made against an estate. Contested probate claims often make the mainstream news and, in our chronically online world, can generate excellent click-bait headlines. With so much public awareness of the types of claims, as well as accessibility of information from the internet and from solicitors about such claims, it seems likely that more people are aware of their potential rights and claims in a way they would not have been 20 years ago.
The next step
We can reasonably expect for there to be a further increase in contested probate claims over the next few years. However, the widely publicised court decisions may lead to better practices such as members of the public seeking specialist advice on their wills and reviewing their estates regularly. This may mean that longer term, the sharp increase in claims may level off. Only time will tell.
In the meantime, our specialist contentious probate team are here to provide advice on prospective claims.
If you require advice or guidance regarding claims to challenge a will, please contact the contentious probate team at B P Collins by emailing enquiries@bpcollins.co.uk or calling 01753 889995.
