UK Residents Intend to Legally Contest Perceived Inequitable Inheritance distribution
Increasing Anticipation and Dependency on Inheritance Sparks Rise in UK Probate Disputes
A new report indicates that a significant proportion of Brits could contest a will and potentially proceed to court if they perceive the inheritance they receive as unfair, highlighting an escalating reliance on potential windfalls.
According to the UK Inheritance Expectations 2025 report, changes to Labour's inheritance tax policy could double the number of families in the UK facing a tax bill on farms and businesses above £1 million. This would increase the inheritance tax receipts by £2.5 billion by 2029-30, as revealed in January when HMRC collected a record £6.3 billion in inheritance tax over nine months ending December.
A survey by The Level Group, featuring responses from 2,000 people, found that approximately half (54 per cent) of participants anticipate inheriting money within the next 20 years. However, a striking 34 per cent admitted to having some level of financial dependency on their expected inheritance. This figure is highest among millennials (over half) and those aged between 35 and 44 (47 per cent).
The data also shows a steady increase in probate disputes over the past decade in the UK. While the number of probate disputes averaged 867 per month in 2023, records suggest an upsurge in 2024 with an average of 992 probate disputes per month.
Recent research indicates that 10 per cent of respondents would challenge a will, even if they don't believe they would win. Amanda Collins, an associate at legal firm Moore Barlow, asserts that inheritance could soon emerge as the "next frontier in civil litigation." Inheritance disputes can often strain family relationships, yet effective communication and well-drafted wills can help reduce conflicts, as suggested by Collins.
Furthermore, Collins argues that intestacy rules need modernization, since they disregard contemporary family structures, such as cohabiting partners, stepchildren, and long-term caregivers. By acknowledging these relationships and mandating professional standards for will-writing, as well as requiring mediation before courts disputes, legislators may curb the escalation of inheritance disputes.
The escalating reliance on inheritance, changing family structures, and an increase in legal challenges to wills have combined to create a surge in UK probate disputes. Efforts to promote open communication within families, create well-drafted wills, and augment the use of mediation and other alternative dispute resolution methods are paramount for reducing family conflicts and smoothing the wealth transfer process.
In light of the rising count of probate disputes in the UK, some individuals may find investing in personal-finance strategies, such as property or finance, more appealing to secure their financial future, rather than relying on inheritance. With the growing number of inheritance disputes potentially straining family relationships and modern family structures being disregarded by intestacy rules, it is prudent for individuals to consider taking proactive steps to safeguard their personal financial affairs.
