logo
Family inheritance disputes hit 10-year high

Family inheritance disputes hit 10-year high

Telegraph24-06-2025
Family inheritance feuds have hit their highest levels in more than a decade, figures show.
More than 11,300 wills were challenged last year, up from 10,410 in 2023, according to official data revealed to The Telegraph by a Freedom of Information request.
The figures represent a marked increase in disputes, with challenges up 56pc from before the pandemic.
Lawyers said that rising property values and larger estates mean that there's 'more at stake' .
In Britain, a person has testatory freedom – the right to decide to whom or what they leave their money – in all but very limited circumstances. This is in contrast to countries such as France, where a portion of estates must be left to direct descendants.
However, this principle is not absolute as those who were financially dependent on the deceased can lay claim to the estate if they are not included.
To do this, the person will usually lodge a 'caveat'. This blocks the granting of probate, the vital legal document needed to distribute an estate to the beneficiaries.
Last year, 11,362 caveats were issued, and it's estimated that approximately 60pc of claimants succeed. The majority were settled out of court. Less than 5pc will be successful at trial, lawyers said, and it can be very expensive.
Scott Taylor, partner in private wealth disputes at law firm Moore Barlow, said: 'Rising property values mean there's simply more at stake when it comes to inheritance. The cost of living crisis has left many people viewing inheritance as essential rather than a bonus.
He said: 'The concern is that there's little evidence this trend will slow as the economic screw continues to turn. Courts are already close to capacity, and that could become a serious issue in the near future before even considering the human impact on those involved.'
Tamasin Perkins, partner at firm Charles Russell Speechlys, said: 'Family tensions and financial pressures are all playing a part. The rise in house prices also means that the family home is becoming more important to younger family members who cannot otherwise afford to get on the property ladder.
'At the same time, people are becoming more switched on; caveats are cheap to obtain and can be done using a simple online process and without lawyers.
'Whilst accessibility is important, this process can be open to misuse when people use caveats tactically to try to force an early settlement.'
The surge in feuds comes after the Law Commission published a landmark report into wills in May, having started an investigation into the legal documents in 2016.
The report found that current laws are not doing enough to protect the elderly and vulnerable from financial abuse, amid a rise in so-called 'predatory marriages'.
The commission also recommended that electronic wills be considered valid, that marriage should no longer invalidate a will, and that those aged over 16 should be given the right to make a will, rather than just those over 18.
And it said that more informal wills should be recognised by courts, and proposed changes to rules about when disabled or mentally incapacitated people can make decisions for themselves.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Reform UK leader Nigel Farage attends Goodwood races as guest of multi-millionaire Tory donor
Reform UK leader Nigel Farage attends Goodwood races as guest of multi-millionaire Tory donor

The Sun

time29 minutes ago

  • The Sun

Reform UK leader Nigel Farage attends Goodwood races as guest of multi-millionaire Tory donor

NIGEL Farage enjoyed the company of a multi-millionaire Tory donor during a day at the races last week, The Sun can reveal. The meeting between the Reform UK leader and entrepreneur Dr James Hay is likely to trigger speculation over future political donations. The Scottish businessman and his wife, Fitriani, who are based in Dubai and worth £325million, have given substantial sums to the Conservatives in the past. Fitriani was one of the main financial backers of ex-PM Liz Truss's Tory leadership campaign, donating £100,000. Racing fan Mr Farage was a guest of owners the Hays during Glorious Goodwood on Friday. He was spotted in the parade ring with Mr Hay and later in a hospitality area. Meanwhile, senior Labour figures expressed panic over big business backing Reform. Industry chiefs will be at the party's annual rally next month. Farage fury as cops admit ESCORTING pro-migrant protesters to Essex asylum hotel

Business chiefs are demanding Rachel Reeves offers tax incentives to help a million young people into workplace
Business chiefs are demanding Rachel Reeves offers tax incentives to help a million young people into workplace

The Sun

time29 minutes ago

  • The Sun

Business chiefs are demanding Rachel Reeves offers tax incentives to help a million young people into workplace

BUSINESS chiefs are demanding Rachel Reeves offers tax incentives to help a million young people into the workplace. More than 100 industry bosses, including Toyota and JCB, have written to the Chancellor demanding help to avoid youths ending up on the scrapheap. 2 Demands are being laid out for a Skills Tax Relief at the Budget with claims it could save £10 billion over five years in welfare savings. The calls come as the talent of one million NEETs – Not in Education, Employment or Training – is going to waste. Georgina Bristol, of the Jobs Foundation, said: 'We know that businesses are the best engine for providing that vital first step on the career ladder for young people. 'But businesses are facing too many additional costs, which is stopping them from fulfilling this vital role. 'We are not short of young people with ambition. We are short of clear routes into real work. A Skills Tax Relief could give business the tools to offer that hope.' Young people who were in this category before the pandemic stood at 10.7 per cent but this then hit a peak of 13.2 per cent – representing 987,000 not earning or even learning a skill. The joint letter from 125 business leaders wants Ms Reeves to bring in some form of tax incentive to enable funding in young people. Prominent signatories include chairman of JCB Lord Anthony Bamford, Labour Peer Lord Jon Mendelsohn and sports promoter Barry Hearn. The Jobs Foundation also highlights that that the number of apprenticeships has fallen by 40 per cent since 2016. The Chancellor last month told a House of Lords committee that getting young people back into work is where 'the biggest crisis exists'. Raising taxes will kill off growth, Reeves warned as she pledges to rip up business red tape 2

Lenders in car finance scandal brace for judgment from investors
Lenders in car finance scandal brace for judgment from investors

Times

timean hour ago

  • Times

Lenders in car finance scandal brace for judgment from investors

Shares in lenders most likely to be forced into compensation payments to consumers who purchased vehicles on credit will be closely watched in the City on Monday, after the financial watchdog set out plans for a redress scheme of up to £18 billion. Close Brothers, Lloyds Bank, Barclays and the controlling group of Santander UK, among Britain's largest providers of motor finance, could see an impact on their share prices as investors consider the consequences of the Financial Conduct Authority announcing plans for a potential compensation scheme that could distribute payments as soon as next year. The FCA said on Sunday that a redress scheme could cost between £9 billion and £18 billion and should cover car loans dating back to 2007. Individuals could receive payments of almost £950 each. The announcement from the City watchdog came after the Supreme Court overruled key elements of an earlier judgment from the Court of Appeal in October that could have put the motor finance industry on the line for compensation payments of more than £30 billion, similar in scale to the £50 billion of payouts under the payment protection insurance scandal of the 2010s. Following that October ruling, shares in Close Brothers, one of the largest players in Britain's motor finance market, slumped by about a quarter in just one day. Shares in Lloyds Bank, which is exposed via its Black Horse lending arm, tumbled by more than 7 per cent. RBC Capital Markets predicted a 'sector impact' of £11.5 billion, with banks paying £3.8 billion and non-banks paying £7.7 billion. Banks had already set aside billions of pounds for possible compensation payments for people who bought a vehicle from a dealership that failed to properly disclose commissions they received from lenders. Lloyds Banking Group alone reserved £1.2 billion. However, analysts at the investment bank Jefferies predicted that the regulator's plans 'largely de-risk Lloyds' shares' from the scandal and that the redress scheme 'is consistent with our long-held assumptions'. Carmakers will also be in focus as many have their own in-house credit divisions. In the wake of the October Court of Appeal ruling, Honda and BMW stopped offering new loans to customers. Alex Neill, co-founder of the rights group Consumer Voice, said: 'Millions of drivers placed their trust in car dealers to secure a fair deal, yet were kept in the dark about unfair commissions that inflated the cost of borrowing. Now, for the first time there is a clear path to justice.' Slater and Gordon, a law firm, said: 'While the [Supreme] Court effectively sided with lenders in two of the three cases, the judgment does not close the door on compensation.' However, it said it was 'concerned that aspects of any proposed redress scheme may inadvertently exclude a significant number of those affected'. Adrian Dally, director of motor finance at the Finance & Leasing Association, an industry body, said: 'We have concerns about whether it is possible to have a fair redress scheme that goes back to 2007 when firms have not been required to hold such dated information, and the evidence base will be patchy at best.' The FCA shocked the motor finance industry in January last year when it announced it would examine so-called discretionary commissions paid to dealers between April 2007 and January 2021, when these types of payments were banned. Under such discretionary commission arrangements, brokers were allowed to set the interest rate on loans extended to borrowers. If they charged a higher rate, they would receive larger commissions, so they were motivated to do so at the expense of consumers' finances. Concerns within the motor finance market then amplified in October when the Court of Appeal decided that car dealers, in their capacity as credit brokers, had a fiduciary duty to their customers, meaning that they should act in consumers' best interests. It also said that undisclosed commissions amounted to bribes. Key elements of this judgment were overturned by the Supreme Court last Friday. There were about 25.9 million motor finance deals arranged between 2007 and the end of 2020, although the Supreme Court ruling means many will be ineligible for redress. There had been fears in the government that lenders would face a deluge of compensation claims, leading to the car finance market seizing up. The Treasury had been considering whether to step in to protect lenders.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store