Today's world is becoming increasingly more complex, with blended households, estranged relationships and digital assets becoming increasingly common. While these dynamics enrich our lives, they can also complicate estate planning and lead to disputes after death. Here’s how to protect your wishes and help avoid conflict.

The challenge of blended families

Blended families, where one or both partners have children from previous relationships, face unique estate planning risks, including:

• UK intestacy laws - Stepchildren and cohabiting partners are not automatically entitled under UK intestacy laws.
• Mirror wills - Often used by couples, can be changed by the surviving partner, potentially disinheriting children from a previous relationship.
• Remarriage - This revokes existing wills, which can unintentionally exclude loved ones.

For those facing these situations, clients should consider the use of trusts to ensure both their partner and children (or other beneficiaries) are provided for. These structures can allow assets to be used during a partner’s lifetime, then passed to children or other beneficiaries later in accordance with your wishes. The use of trusts must be carefully considered and therefore it's imperative that professional advice is sought. 

Estranged relatives and family tensions

Family breakdowns can lead to disputes over wills, especially if someone feels unfairly excluded or if the will’s validity is questioned. Claims under the Inheritance (Provision for Family and Dependants) Act 1975 are rising and allegations of undue influence, lack of capacity, or fraud can lead to costly litigation.

Using a solicitor to draft your will ensures it is legally sound and tailored to your circumstances, reducing the risk of ambiguity or errors that could lead to disputes. A professionally prepared will also helps to defend against claims under the Inheritance Act by clearly documenting your intentions and considering potential challenges. It's also important to keep your will updated and clearly document your decisions. A letter of wishes can also help to explain your reasoning and help prevent misunderstandings after your death.

Digital assets: The overlooked estate

From cryptocurrency to social media accounts, digital assets are often forgotten in wills, but they can hold significant financial or sentimental value. Without clear instructions, loved ones may struggle to access or manage these assets. Some platforms also have strict privacy rules or require court orders for access.

Legislation is still lacking in this specific area, but maintaining a secure inventory of digital assets and login credentials will certainly help. You could also consider including digital assets in your Will and appointing a digital executor if this is appropriate.

Practical steps to avoid disputes

1. Have a professionally drafted will - Ensure it reflects your current family and financial situation.
2. Use trusts wisely - Get proper advice on how you can protect assets and control how they’re distributed.
3. Communicate openly - Discuss your plans with family to reduce surprises.
4. Review regularly - Update your Will after major life events or changes to finances or in legislation
5. Seek legal advice - A solicitor can help tailor your estate plan to your unique circumstances.

Need help?

Regardless of your situation, it’s essential to plan ahead. Contact me to find out how our team can help you create a robust estate plan that reflects your wishes and protects your loved ones.