Will inheritance disputes slow down your house sale?
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Inheritance disputes are one of the most challenging aspects of managing a deceased person’s estate, particularly when it involves selling a property. Whether it’s disagreements over the distribution of assets, the validity of a will, or contested probate claims, these disputes can create significant delays in the house selling process.
The complexities of probate – combined with family tensions & legal challenges, often mean that resolving disputes and completing the sale of a house can take well over a year, if not two.
In this article we will explore how inheritance disputes can impact property sales, common causes of these disputes and the steps you can take to mitigate these delays.
What delays do inheritance disputes bring to a house sale?
Inheritance disputes can create significant roadblocks to selling a probate property in the UK. These disputes, often centred around disagreements over estate distribution or the validity of a will, can prolong the probate process, delaying the sale of associated property and impacting beneficiaries.
Here are some major issues that inheritance disputes can cause:
Extended probate process
One of the most immediate impacts of an inheritance dispute is the extension timeline. The probate process, which legally authorises an executor to manage and distribute the deceased’s estate, can already take several months under normal circumstances.
When disputes arise, this timeline can stretch massively. According to Stephens Scown, in 2023, there were 122 contested probate cases in the UK, up from 116 in 2022. These disputes often require legal resolution, which can add months or even years to process.
Court proceedings
Contentious probate cases often escalate to court, further delaying the sale of the property. The High Court of England and Wales handled 117 disputed probate cases in 2022, compared to 105 in 2021.
Court proceedings are not only time consuming but also costly, adding immense financial strain to already stressful situations. During this time, the property remains unsold, compounding the delays.
Beneficiary finances
Delays caused by inheritance disputes can lead to significant financial hardships for beneficiaries who might rely on the estate’s proceeds. According to a survey by the Society of Trust and Estate Practitioners, 64% of respondents reported financial difficulties for beneficiaries due to probate delays. This hardship is often intensified when the house sale, a significant part of the estate, is postponed.
How long do inheritance disputes take?
For inheritance disputes that are resolved without going to court, most cases are settled within 12 months. This includes resolutions achieved through negotiation or mediation, which are typically faster and less adversarial.
If court proceedings are required, the timeline increases massively. It can take up to two and a half years for a case to reach trial, depending on the court’s schedule and the complexity of the dispute. However, it’s important to note that only 2% to 3% of inheritance disputes proceed to final hearing, as many cases settle during earlier stages.
Around 50% of inheritance disputes are resolved before court proceedings are formally issued. This is often due to successful negotiation or mediation, which can reduce both the time and cost involved in resolving the matter.
In cases where litigation is necessary, it may take an additional 12 to 24 months compared to disputes resolved through alternative methods like negotiation or mediation.
What are the common reasons for inheritance disputes?
Inheritance disputes arise when disagreements occur over the distribution of a deceased person’s estate. In the UK, these disputes have been increasing, with contested probate cases in the High Court rising by 11% between 2021 and 2022.
Understanding the common causes of these disputes can help prevent or resolve them efficiently:
Ambiguity in the will
Ambiguity in a will often arises when the language used is unclear, leaving room for differing interpretations among beneficiaries.
For insurance, if the will contains vague instructions such as “my estate should be shared fairly among my children,” disagreements may arise over what constitutes “fair”.
Additionally, ambiguity can occur if the will fails to address certain assets or situations such as newly acquired properties or beneficiaries born after the will was created.
These omissions may result in assets being distributed under intestacy laws, which can conflict with the deceased’s wishes.
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Claims of undue influence
Claims of undue influence usually arise when someone believes the deceased was pressured or coerced into making decisions about their will that did not reflect their genuine wishes. These allegations often involve significant changes made to a will shortly before death, such as disinheriting certain beneficiaries or heavily favouring one individual.
For example, if a family member was heavily involved in the deceased’s care and suddenly becomes the primary beneficiary, others might question whether this outcome was achieved through undue influence.
Proving undue influence can be challenging, as it requires demonstrating that the deceased’s free will was overridden. Evidence such as sudden changes to legal documents, the isolation of the deceased, or the beneficiary’s involvement in drafting the will may support these claims.
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Questions about testamentary capacity
For a will to be valid, the testator must have testamentary capacity, meaning they understand the nature and effect of their decisions, the extent of their estate, and the claims of potential beneficiaries.
The requirement is often called into question when the deceased was elderly, ill or suffering from cognitive impairments such as dementia at the time the will was created.
Disputes over testamentary capacity are particularly common when a will depart significantly from previous versions, leaving some beneficiaries feeling aggrieved.
Proving a lack of capacity involves demonstrating that the testator was not of sound mind at the time the will was made. Medical records, witness testimonials, and the opinions of doctors, often play a role in these cases.
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Intestacy
When someone dies without a valid will, their estate is distributed according to the UK’s intestacy rules. These rules follow a hierarchy, prioritising spouses, children and other close relatives.
However, intestacy can lead to disputes among family members, especially when the rules do not align with the deceased’s presumed wishes.
For example, unmarried partners or stepchildren who were financially dependent on the deceased have no automatic entitlement under intestacy laws, which can create tension and legal challenges.
Intestacy disputes are further complicated when multiple relatives have claims to the estate, particularly in blended families or when assets like the family home are involved.
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Unequal distribution of assets
Unequal asset distribution, even when explicitly stated in a will, is a common source of contention among beneficiaries. For instance, if one sibling receives a significantly larger share than others, accusations of favouritism or unfair treatment can arise.
These disputes often stem from underlying family dynamics, such as perceived parental bias or unresolved grievances, which can escalate tensions during the probate process.
Even when the unequal distribution is distributed, such as when one beneficiary provided significant care for the deceased, other family members may still feel slighted.
These emotions can lead to prolonged disputes and even court challenges, which can deplete the estate’s value.
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Executor disputes
The executor of an estate plays an important role in managing and distributing assets in accordance with the will or intestacy rules.
However, disputes can arise if beneficiaries feel that the executor is acting improperly, such as delaying the distribution of assets, favouring certain beneficiaries, or mismanaging estate funds. Accusations of bias or incompetence can lead to legal challenges, with beneficiaries seeking to remove the executor.
Executor disputes are particularly common in cases where the executor is also a beneficiary, creating potential conflicts of interest. Resolving these disputes often requires legal intervention, which can further delay the probate process and increase costs.
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Third party claims
Inheritance disputes are not always confined to family members; third parties, such as cohabiting partners, or dependents not named in the will, can also make claims against the estate.
The Inheritance Act 1975 allows certain individuals to challenge a will if they believe it fails to provide reasonable financial provisions.
These claims often involve cohabiting partners or adult children who were financially reliant on the deceased but are excluded from the will.
Third party claims can complicate the inheritance process, as they often require court involvement to resolve. The outcome may involve reallocating assets from named beneficiaries to satisfy the claim, leading to frustration and additional delays.
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What is the most common reason for contesting a will?
The most common reason for contesting a will is dissatisfaction with the inheritance received. This often stems from beneficiaries feeling they were unfairly treated or excluded entirely, leading to disputes that can prolong the probate process and strain family relationships.
Many individuals contest a will when they believe they have been inadequately provided for compared to other beneficiaries. This is particularly common among siblings, estranged family members, or dependents who expected a larger share of the estate. According to a survey conducted by IBB Law, dissatisfaction with inheritance was cited as the primary reason for disputes by 26% of respondents.
Is my ex entitled to half my inheritance?
If you received an inheritance before or during the marriage, it might be considered part of the marital assets, especially if it was used for joint purposes, such as buying a family home or shared investments. In such cases, the inheritance could be subject to division to meet the financial needs of both parties.
If an inheritance was received after separation, it is generally viewed as non-matrimonial property. However, if the marital assets are sufficient to meet the reasonable needs of both parties and any children, the court may consider post-separation inheritance as a resource to address those needs.
Implementing a clean break order during divorce proceedings can prevent further financial claims by an ex-spouse, including claims on any inheritance received after the divorce. Without such an order, an ex-spouse may have grounds to claim a portion of future inheritances.
Can my family force the sale of my dead parent’s house?
In the UK, the ability of family members – such as siblings, children or a surviving spouse to force the sale of a deceased parents house depends on if there is a will, the terms outlined in it and the legal ownership of the property:
Presence of a will
If the deceased left a will, the appointed executor is responsible for administering the estate according to the deceased’s wishes. This includes managing assets like the family home. Beneficiaries cannot unilaterally force the sale of the property; such decisions rest with the executor, who must act in the estate’s best interests.
Intestacy (no will)
In the absence of a will, the estate is distributed according to intestacy laws. An administrator is appointed to manage the estate, and their responsibilities mirror those of an executor. Family members cannot compel the sale of the property without the administrator’s consent.
Joint ownership
If the property was owned jointly with a right of survivorship (as joint tenants), the surviving owner automatically inherits the deceased’s share. In this situation, other family members have no legal claim to the property and cannot force its sale.
Disputes among beneficiaries
When multiple beneficiaries inherit a property and cannot agree on its sale, one or more may apply to the court for an ‘order for sale’ under the Trusts of Land and Appointment of Trustees Act 1996.
The court will consider factors such as the intentions of the person who created the trust, the purposes for which the property is held, and the welfare of any minors living in the property.
How do people lose their inheritance?
There are several ways a beneficiary – any individual or organisation named in a will to inherit money, property or possessions, can lose their inheritance. Some of these situations stem from legal and financial rules, while others arise from the specifics of the will itself.
Witnessing the will
Beneficiaries lose their right to inherit if they act as a witness to the signing of the will. While this doesn’t invalidate the will, it does prevent witnesses from receiving any inheritance outlined for them. This rule is in place to avoid potential conflicts of interest or undue influence during the wills creation.
Insufficient estate funds
Another common reason a beneficiary might lose their inheritance, either partially or entirely, is if the estate lacks sufficient funds to pay off the deceased’s outstanding debts.
Before any inheritance can be distributed, all financial obligations, including debts, taxes and funeral costs, must be settled. If the estate is insolvent, beneficiaries may receive nothing, even if they are named in the will.
Disputes and contested wills
Inheritance disputes, such as contested wills, can also jeopardise a beneficiary's right to inherit. Legal battles over the validity of a will or disagreements among family members can deplete the estate’s value, leaving little or nothing for beneficiaries.
Impact of the Inheritance Act 1975
For those concerned about their inheritance, the Inheritance Act 1975 proves a potential path for legal recourse. This act allows certain individuals, such as children, spouses or dependents, to claim reasonable financial provision if they believe the will fails to meet their needs.
While this act can help some beneficiaries, it can also reduce or eliminate the share of other beneficiaries if the court reallocates assets.
Poor financial management of the estate
Executors who mismanage estate funds or fail to distribute assets correctly can inadvertently cause beneficiaries to lose their inheritance.
Can you contest your inheritance?
Yes, it is possible to contest your inheritance, but you should only do so if you have a valid and legally recognised reason. Contesting an inheritance usually involves meeting specific legal criteria, known as “legal standing”, which determines whether you are eligible to challenge the distribution of the estate:
The will is not valid
A will may be considered invalid if:
It was not signed or witnessed correctly.
The deceased lacked mental capacity when creating it.
There was undue influence or fraud.
Insufficient provision for dependants
Under the Inheritance Act 1975, you may contest an inheritance if the deceased failed to leave enough for your reasonable financial needs, particularly if you were financially dependent on them.
Unfulfilled promises
If the deceased made clear promises during their lifetime that are not reflected in the will, you may have grounds to contest the inheritance. This is often the basis for proprietary estoppel claims, where someone has acted to their detriment based on such promises.
Improper management of the estate
If the executor or administrator is not managing the estate fairly or in accordance with the will, beneficiaries may have grounds to contest the distribution.
If you believe that you have a legal standing to contest your inheritance, you must act quickly. Claims must be made within six months of the Grant of Probate. If no will exists, a similar time frame applies following the issuance of Letters of Administration. Acting promptly ensures that your claim is considered within the legal time limits.
How do you settle a contentious probate?
Settling a contentious probate dispute requires a structured approach to resolve disagreements over the administration of a deceased person’s estate. Contentious probate often arises when there are disputes about the validity of a will, the distribution of assets, or the actions of an executor. There are a few methods to resolve these disputes, ranging from informal negotiations to formal court proceedings:
Negotiation
Many probate disputes can be resolved through direct communication and negotiation between the parties involved. This approach allows flexible solutions and can help maintain relationships by avoiding the adversarial nature of court proceedings. During negotiations, parties may discuss their concerns openly and work towards a mutually acceptable agreement.
Mediation
Mediation is a highly effective method for resolving contentious probate disputes. In this process:
A neutral third-party mediator facilitates discussions between the disputing parties.
The goal is to reach a voluntary agreement that satisfies all involved.
Mediation is confidential, less stressful and often cheaper than litigation.
Mediation is particularly useful in cases involving family members, where preserving relationships is a priority.
Alternative Dispute Resolution (ADR)
In addition to mediation, other forms of ADR, such as arbitration may be used. These methods provide structured frameworks for resolving disputes without the need for court intervention. Unlike mediation, arbitration results in a binding decision made by the arbitrator.
Litigation
If negotiations and ADR methods fail, litigation may be necessary. This involved taking the dispute to court, where a judge will make a binding decision based on the evidence presented. Litigation is often seen as a last resort because it can be time consuming, expensive and stressful for all parties involved. Common situations requiring litigation include:
Disputes over the validity of a will.
Allegations of undue influence or fraud.
Mismanagement of the estate by the executor or administrator.
Settlement agreements
At any stage of the dispute, the parties may agree to settle the matter through a formal settlement agreement. This document outlines the terms of the resolution and is legally binding. Settlement agreements can be reached during negotiations, mediation or even during litigation proceedings.
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