A rise in court cases challenging wills
We recently shared an article about the growing importance of inheritances and how the importance of them seems to be on the rise.
But while people are enjoying their inheritances, there are many cases where they have caused a dispute between family members. The latest data from the Ministry of Justice shows that in 2019 there were188 cases heard in the High Court that were challenging someone’s will. This number is up 47% from 2018.
And this is just considering those taken to court. Many more disagreements will have taken place and been settled before reaching court, as both parties decide to not face the legal costs that can reduce any possible victory.
A court case to note
There has recently been one case of note, which concluded in an important outcome..
Tony Shearer passed away at the age of 68 in October 2017, leaving behind his second wife Pamela, and his two daughters from his first marriage, Juliet who was 40 and Laura, aged 39.
In 2008, when both his daughters were in their mid-20s, Tony gave £177,000 to Juliet and £185,000 to Laura and told them clearly that this was the last of his money they would receive. The two women were then excluded from his will.
This meant that his £2.2million estate and every other asset, bar two small legacies, was left to his wife Pamela. In preparation of the second death, Tony and Pamela had drawn up mirror wills stating that 25% of the estate would go to two of Pamela’s friends, 25% would go to Juliet and 12.5% to each of her two daughters.
Both Juliet and Laura made claims to their father’s legacy under the Inheritance (Provisions for Family and Dependants) Act 1975.
The claims being made
Juliet’s claimed had three parts:
· A housing fund to enable her to move out of her mother’s home.
· The cost of training as a dog behaviourist, so that she could support herself.
· A payment to cover the costs of provisions for her autistic daughter.
While Laura claimed for:
· A lump sum to reduce her mortgage to £170,000, a level at which she could afford to convert to a repayment mortgage.
· An additional lump sum to buy her ex-husband’s equity share, of 11%, in the flat.
It might help here to have a bit of context on Juliet and Laura’s situations at the time of the trial. Juliet had two daughters and was in the middle of divorcing her second husband. She was living with her mother in a large property in Wiltshire and was not working. Her wealth equalled around £175,000 which was represented by a share of a flat in Fulham Palace Road; this was jointly owned with her mother.
Laura had one son and was divorced. She was living in a flat in Fulham, in which she held £300,000 of equity and on which there was a £414,000 interest-only mortgage. Her ex-husband had retained 11% equity in the flat but had agreed not to sell the property until 2034, when their son turned 18. Laura was earning £70,000 a year.
The outcome
Needless to say, the judge rejected both the claims, stating that neither daughter had established a need for maintenance. Tony had no obligation to support his adult children and he had made it clear in his gift in 2008 that he would not be providing any further financial support.
It would be interesting to understand the reasoning behind this increase in court cases where wills are being challenged. Could it be due to the rising importance being placed on inheritances?
Conclusion
So, what do we learn from this story?
We learn that it is important to make your intentions clear to all those concerned. To make it crystal clear and hard to argue with, your intentions should be in writing, ideally in a letter of wishes that accompanies your will.
I encourage all of my clients to have wills and powers of attorney ready at an early age. This case reinforces the need to do so. If Tony had died without a will, his wishes would most likely not have been followed.
If you would like help in writing wills or powers of attorney, please feel free to contact me and I can point you in the direction of helpful resources.