One in 5 have squabbled with household over inheritance… this is why it pays to be clear

Dodging conversations about inheritance is increasingly causing rifts among family members as almost a fifth of people say they have had to deal with a dispute, a study This is Money has seen exclusively shows. 

As many as 18 per cent of people have argued about what they inherit with other family members, according to the study by Canada Life.

Meanwhile a quarter said they expect a failure to address the issue will cause problems further down the lines.

Five per cent of people even said they had tried to broach the subject with family members but that they wouldn’t discuss it. 

This comes despite the fact 60 per cent of people think being open with their family would help them understand the situation and 41 per cent think it would reduce the likelihood of legal issues further down the lines.

And yet, as many as 29 per cent said they don’t want to discuss inheritances as they are ‘too far in the future’, a quarter said they don’t want to think about it and a fifth said it is their business to deal with it alone.

Well laid plans: Discussing the issue of inheritance can help to avoid family disputes further down the line

Stacey Love, tax and estate planning specialist at Canada Life, said: ‘Discussing inheritance can be challenging for many families, with some believing that avoiding it may help maintain harmony in the short term. 

‘However, our Life100+ research reveals that avoiding these conversations often leads, or has the potential to lead, to conflicts within families.’

While inheritance disputes can create major rifts within families, they can also prove eye-wateringly expensive.

Many cases won’t reach trial, only 2 per cent do in fact, but for those that do go to court, the costs can be high.

While some solicitors will take on a case on a no win no fee basis, the personal contesting the will would still be liable to pay the defendant’s legal costs if the claimant loses the case.

Even if it doesn’t go to trial and is solved through mediation, this could still set you back thousands of pounds.

Inheritance disputes have been becoming increasingly common in recent years, with the wealth transfer from the baby boomer generation combining with an increase in second marriages proving the root cause of this.

These disputes often arise as a result of someone being left out of a will, someone dying without having written a will and disagreements among executors.

Love said: ‘To prevent these issues, we need a shift toward transparency. It’s encouraging to see that more than two-fifths of people plan to discuss inheritance more openly than previous generations, breaking the taboo around inheritance and later-life planning.

‘Open conversations can ensure intentions are clear, reduce potential conflicts, and better prepare loved ones for the future. By fostering a more openminded approach, families can build stronger relationships and reduce misunderstandings over time, as well as feel more in control and satisfied with outcomes.’

Despite many holding reservations, more than a third understand that open conversations can ensure that assets are distributed fairly, conflict can be avoided, and family members can better plan their finances as a result.

Younger generations are becoming increasingly open with their money

It appears that younger generations are more willing to be open with their plans in the future, with 43 per cent of people planning to discuss their inheritance plans.

This shift in opinions is largely as a result of younger generations’ own experiences with older family members not being willing to address the issue of inheritance.

A tenth of people said they don’t talk about finances with their family, with the number rising to 13 per cent for those over 55.

Despite this, data from Saltus indicates that those under 25 are twice as likely to discuss their salary with their friends, with 35 per cent having shares their salary with close friends compared with just 18 per cent of those over 55.

Similarly, around half of 18 to 24-year-olds have told their partner what they earn, whereas less than a third of those over 25.

Megan Jenkins, chartered financial planner at Saltus, said: ‘The openness of younger generations when it comes to discussing money is a real cultural shift. This is likely to have been fuelled by a number of factors, including social media, economic pressures and a drive for fairness.

‘Unlike older generations who avoided discussing finances, Gen Z sees sharing earnings as normal, influenced by social media content creators who post content sharing their job titles, industries and salaries, and encourage their followers to have open discussions about fairer finances.’

Have you had an inheritance dispute? Get in touch: [email protected]