Where there’s a will, there’s a war

Most wealthy Britons do not discuss their will with family

The Voice star Bo Brunce was in court recently over an inheritance dispute. Sadly, it’s increasingly the case that ‘where there’s a will, there’s a war’, and the courts are now seeing record numbers of people fighting over inheritances.

Despite the surge in litigation, new research indicates that most wealthy people are still choosing to keep their wills a secret instead of taking time to talk their wishes through with family. Experts are warning that it’s far better to have the difficult conversation while you’re alive, rather than risk fireworks among loved ones when you’re gone.

·       A new study reveals more than half of wealthy Britons have not spoken to loved ones about inheritance plans

·       A large number (42%) have made no will; 1 in 10 say they have no plans to do so

·       A third have sought professional advice to avoid inheritance taxes

Most wealthy Britons prefer not to share their inheritance plans with their families, according to a new study.

In a survey commissioned by Brown Shipley, a Quintet Private Bank, 54% of respondents said they had not spoken to loved ones about plans to pass on wealth. More than two-fifths (42%) had not yet made a will, though 17% were planning to do so in 2023.

The report indicated that large numbers of wealthy people are now consulting wealth management professionals, with almost a third (32%) saying they had reviewed their plans to make sure money was passed on in a tax-efficient way.

The current tax-free inheritance allowance is £325,000, while a £175,000 nil-rate band applies to homes passed to children or grandchildren. However, gifts made in the last seven years of someone’s life are exempt.

Brown Shipley’s annual wealth report found that nearly two thirds (63%) of respondents who lived in homes valued at £500k or more owned their properties outright.

And 1 in 5 six-figure earners said their wealth came from running their own business.

Rebecca Williams, Head of Wealth Planning at Brown Shipley, a Quintet Private Bank, said: “Speaking to loved ones about estate planning and your will can be uncomfortable, but it can help provide clarity and prove beneficial to long-term family dynamics.

“Those wealthy individuals who put off making a will may find their wealth isn’t passed on in the way they wish, or that their loved ones might have expected. There are decisions that individuals can make now that can have a positive impact on how loved ones will benefit – in the near term and over time.

“It’s encouraging that many people are taking action to pass their wealth on efficiently, and also consulting a professional adviser to do so. This can help ensure wider plans and timing for passing on wealth are taken in account, while also ensuring that the most tax-efficient structures are in place.”

Here are some links to the high profile cases recently heard in court: billionaire siblings at war, brother go to court four times over inheritance, The voice star in inheritance battle.

Brown Shipley, a Quintet Private Bank