Relatives fight over wills as value of estates dwindle
Legal disputes over wills have multiplied tenfold in the last three years, as beneficiaries inherit less than expected due to the recession.
In the past year, the number of bereaved relatives launching High Court legal challenges jumped by 38%, according to statistics obtained by City law firm, Wedlake Bell.
The Chancery Division, London heard 110 cases involving contested wills or intestacy in 2009, compared with 80 in 2008. Wedlake Bell reports a tenfold increase in the past three years, from just ten such cases in 2006. The firm says the pattern is likely to be repeated across the country and that, as many claims are settled out of court, these figures reflect only a fraction of the total number of disputes.
Fay Copeland, partner at Wedlake Bell, says: “The recession has had a hugely detrimental impact on the size of estates with the value of family homes, shares and other assets having all dwindled.
“As the pie gets smaller, the temptation for beneficiaries to fight for a bigger slice increases.
“The scope for inheritance disputes increases dramatically with the number of marriages, divorces and children that are involved. Anyone who was in some way financially dependent on the deceased at the time of death may be able to make a valid claim, so that also applies to children outside marriages, cohabitees and even mistresses.”
Copeland says using unregulated will writing services created further risks, because “a small mistake can actually lead to a big problem further down the line”. She advised that an accompanying letter explaining the testator’s wishes might make the will harder to challenge.
The law on intestacy is currently being reviewed by the Law Commission, which produced a consultation paper last year. A report and draft Bill are due to be published in 2011.
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