Many disputes are driven not solely by financial considerations (although this is always a consideration) but the importance of the ‘principle’ of doing what the deceased person would have wanted (or indeed did want in their will).
Added to this is a rapidly ageing population that brings with it an increase in those being diagnosed with dementia. Such a diagnosis does not, of course, mean a person does not have capacity to make a will – but the perception of others may be otherwise, which in turn leads to will challenges or questions over financial abuse and challenges to lifetime gifts.
Other contributing factors are more complicated family structures, with people having second or third families, whether they have remarried or not. People are also generally more aware of their rights and seem increasingly willing to protect them in the courts.
Moreover, people’s estates are now much larger, which results in some considering it financially worthwhile to fight for a share in the assets.
Challenges can be costly
Whatever the reason for the increase in disputes, when they occur disputes are costly – easily a six-figure sum if the matter proceeds to a contested trial. They are also emotionally difficult for those involved, not to mention the family relationships that can be irreparably damaged. Litigating and grieving is not a good combination.
Thankfully, the majority of estates are administered without incident. However, this is no reason for complacency, particularly where a person has significant assets. Many inheritance challenges are not meritorious. Yet this does not prevent the have-a-go challenger, which in turn leads to costs being incurred for beneficiaries.
It pays, therefore, to consider what can be done to prevent a client’s estate falling victim to the same fate.
Sadly, it is impossible to rule out a challenge completely. However, there are steps that can be taken to minimise the risk, and empower executors and beneficiaries to head off a challenge at an early stage and with the minimum of expense.
Minimising the risk of challengers
The first rule if you have significant assets or complex affairs, is not to try to do it yourself. While a handwritten will on a shop-bought ‘do-it-yourself’ kit is perfectly valid if done properly, the potential for it to go wrong is greatly increased, as will be the suspicion of those expecting to inherit.
Not to mention that there could be valuable estate planning advice that your clients miss out on; getting professional advice is essential. It is also a good idea to review the arrangements as circumstances change, to ensure that the client’s current wishes are properly reflected in their will.
