Personal Finance

With two out of five Britons preparing to go to court over inheritance, the number of estates without a will reached a five-year high

With two out of five Britons preparing to go to court over inheritance, the number of estates without a will reached a five-year high
According to Ministry of Justice data, the number of probate disputes is continuously increasing

The number of estates with assets left behind without a will has increased by over 50,000 in the past 12 months. It occurs as more and more families claim they are at risk of inheritance disputes.

According to data from the Ministry of Justice, the number of so-called intestate estates increased by 17% to 51,140 in the past year, from 43,600 the year before, reaching a five-year high.

When a person passes away without leaving a will and they have valuable assets like real estate, stock, or bank accounts, the court frequently has to grant letters of administration to designate a successor to manage the estate.

In these situations, assets are divided in accordance with stringent intestacy laws, which could result in outcomes that the departed did not want for their legacy.

This can include money going to distant relatives the deceased may never have met, estranged spouses, or even the Crown if no surviving family members can be located.

"Dying without a valid will can cause enormous distress and confusion for loved ones and often leads to outcomes that are completely at odds with the deceased's wishes," shared David Lunn, managing associate in the private client team at TWM Solicitors, which conducted the research.

He went on to say: "Unmarried or unregistered partners may not be able to inherit property and possessions because intestacy laws focus primarily on blood relatives.

Thus, you should definitely think about drafting a will if you are in a committed, long-term relationship that is not marriage.

Inheritance-related court cases are increasing.

It is anticipated that family disputes over inheritances will increase as more estates pass away without a will.

According to a separate report by probate lending firm Level Group, nearly two out of five people (38 percent) in the UK stated that they would be willing to go to court if they believed the inheritance they had received was unfair or not what they had anticipated.

Even though they might not win, some (8 percent) said they would still contest it.

Men were more likely than women to say they would contest a will (44 percent versus 34 percent), and those between the ages of 25 and 34 were the most likely generation to do so (60 percent).

Seven out of ten respondents who stated they contest an inheritance have already filed a lawsuit over it. Another 22% of respondents stated that, depending on the situation, they might do this.

The number of probate disputes is steadily increasing, according to data from the Ministry of Justice (MoJ). Over the past ten years, the number of probate disputes that wind up in court has increased by 37% (2023 versus 2014 data).

Probate disputes averaged 867 per month in 2023. According to the most recent data, there was an average of 992 disputes per month between January and September of 2024, indicating an upward trend.

In addition to the growing number of contested probates, additional statistics from the MoJ show that probate cases are generally taking longer to resolve.

With a 518 percent increase from 2019 to 2024, the number of probate cases that take more than a year has been rising steadily over the previous five years.

The new government figures show a worrying increase in probate disputes, which makes proactive and comprehensive estate planning more crucial than ever, according to George Williamson, founder and CEO of Level Group, a probate lending company that acquired the data.

"Failing to do so can put families in financial limbo by causing delays in probate proceedings and future disputes.

Intestacy rules: what are they?

If no will was left to ascertain a person's wishes, the estate must legally follow the rules of intestacy.

In accordance with intestacy rules.

The first 322,000 would be given to the deceased's spouse or civil partner if they were married or in a civil partnership. The remaining amount would be split equally between the spouse and any children. If neither spouse or children survive, a rigid hierarchy of relatives is followed, which may not even closely reflect the deceased's wishes. The surviving spouse or civil partner, children, and other relatives are given precedence in the inheritance order, which is determined by family relationships.

These are the priorities.

Stepchildren and legally adopted children are not automatically entitled to inherit under intestacy unless they have been legally adopted, as are surviving spouses and civil partners' children. Grandparents, parents, siblings (full and half-blood), aunts, uncles, and the Crown, Duchy of Lancaster, or Duke of Cornwall, for instance, if a married couple with no parents and a sibling each dies without a will, the sibling who passes away first will inherit everything on the second death.

For instance, consider a husband and wife without wills. If the husband passes away before the wife, she will inherit the estate; if she passes away, her brother or sister will inherit everything. The husband's brother or sister will inherit in her place if she passes away first.

At TWM Solicitors, David Lunn stated, "A well-drafted will could have ensured both brothers or sisters were remembered, not just the lucky one."

"A well-written will guarantees that your estate is allocated in accordance with your desires, where any possible points of contention or misunderstanding have been considered and addressed beforehand," Lunn continued.

It can also lessen the likelihood of future disputes and help prevent the need for court intervention.