Rising Inheritance Disputes: Mitigating the Risk
The rise in inheritance disputes can be attributed to several factors:
- Emotional Factors: Emotions can often run high when dealing with inheritance. Beneficiaries and relatives may feel they’re not receiving their fair share, leading to disputes over the distribution of assets.
- Intestacies: When someone dies without a valid will (intestate), the distribution of their estate is determined by law. This can lead to resentment among heirs, especially if they do not fall under the rules of intestacy.
- Wealth Transfer from Baby Boomers: The wealth of the baby boomer generation is being transferred to their descendants as they pass away. This transfer includes larger financial stakes, second marriages leading to stepchildren being disinherited, and issues like dementia potentially invalidating wills.
- Video Will Witnessing: With the validity of video Will witnessing between September 2020 and January 2024, there could be increased scrutiny and queries about the validity of wills, particularly regarding issues like undue influence and misinterpretation during virtual witnessing.
To avoid such disputes, it’s crucial for individuals to engage in proper estate planning. Valid wills can help ensure assets are distributed according to the deceased’s wishes, reducing the likelihood of disagreements among heirs. Seeking professional advice and utilising trusted estate planning services like Complete Estate Protection can further minimise the chances of errors and disputes during the estate administration process.
Financial advisers and estate planners should also discuss intergenerational wealth transfer with their clients. Understanding the risks and opportunities involved in passing wealth between generations can help clients make informed decisions and avoid potential mistakes that may lead to disputes. By fostering these discussions, advisers can strengthen client relationships and ensure smoother wealth transitions.
