Will disputes on the rise

Claims by people seeking to challenge wills and trusts have soared over the past four years as the value of estates has increased and could lead to a rise in negligence claims against trustees, according to experts.

Fay Copeland, head of Wedlake Bell’s contentious trusts and probate team, says her firm has seen the number of claims over wills and trusts treble since 2004.

“As personal wealth has swelled in value in recent years, thanks to escalating house prices, bumper bonus payments and the strength of other long-term investment returns, the assets left in wills and trusts have become all the more worth fighting for,” she says.

She says the rising divorce rate has created more complex family structures, clouding the issue of who should get what.

In addition to the booming trade in claims, Copeland says that increases in the number of people disputing trustees’ oversight of the investment management of the trust’s portfolio are likely. Trustees themselves can also be held personally liable if they have not taken and reviewed professional investment advice, despite not being required to hold professional qualifications.

“With trusts now a widely used tax mitigation and inheritance planning tool, increased asset price volatility is likely to drive growing numbers of claims for negligence if trustees have failed to meet their responsibilities to ensure that investments are appropriately managed,” she says.