Common Causes of Inheritance Disputes and How to Solve Them

An inheritance dispute occurs when one or more of the beneficiaries of a will or family members of the deceased feel that they have been treated unfairly and not been given their fair share of assets. With increasing numbers of parents stating they do not plan to divide their assets equally among their offspring when they pass away, inheritance disputes could become more common.

There are systems in place to help resolve inheritance disputes, and there are steps that can be taken during the will writing process that can help each beneficiary understand why they are being allocated their specific portion of assets.

Dr Edgar Paltzer operates a legal practice in Switzerland and deals with inheritance disputes regularly. Disputes are more likely to arise when a person dies intestate – some of the general inheritance rules surrounding intestacy can be found in the PDF attachment to this post.

Intestacy and Inheritance Rules

Causes: Inadequate Financial Provision

Inheritance disputes can arise when inadequate financial provision has been made for one or more members of the family. Certain individuals have a legal right to be included in a will, such as heirs with compulsory shares. Disputes can also arise when adult children feel their share of the assets allocated is unfair.

Causes: Intestacy

The rules of intestacy are very black and white: assets are divided according to family relationships, regardless of the actual nature of those relationships, For example, if someone dies intestate with two surviving biological children, one of whom has cared for that parent and had a close relationship while the other has been estranged for 20 years, the rules still favour an equal division of assets which could cause a dispute.

Causes: Blended Families

With the increasing number of blended families, writing a will is not always as straightforward as dividing assets among children. The rules of intestacy do not account for stepchildren or cohabiting partners, so these people will need to be included in a will if they are to receive a share of the deceased’s estate following death.

The embedded infographic looks at some inheritance statistics from a survey conducted by Charles Stanley.

Inheritance PlanStatistics

Solutions: Estate Planning

Careful estate planning prior to death can help reduce the likelihood of siblings disputing the outcome of a will. When wishes have already been discussed and clarified before death, offspring are less likely to take legal action as they will have been adequately prepared. For more personal items, many people prefer to distribute them before death as gifts, to help avoid rivalry over who gets them once they have passed away.

Solutions: Mediation

Where disputes arrive after death, the family members involved could try mediation to resolve the issue without having to go down the legal route. With mediation, an experienced professional helps all parties to set their objectives and make compromises that result in everyone being happy with the results. Some further information regarding mediation for inheritance disputes can be seen in the short video attachment.

Solutions: Letter of Instruction

A letter of instruction is not a legally binding document but it can help settle disputes over assets by clearly defining the wishes of the deceased regarding each individual item. By detailing who should be getting what clearly and concisely, many parents can help avoid disputes over assets after their death.

If these methods do not work then legal disputes may end up in court, which can be a lengthy and expensive procedure that eats into the value of the assets being fought over.