Blended families fuelling inheritance disputes, STEP research finds

Lack of estate planning and communication within families is fuelling a significant rise in inheritance disputes, with blended families at most risk of conflict, according to research from STEP, the professional body for trust and estate practitioners.

Of the 533 professional practitioner respondents surveyed by STEP, 41% said they had seen an increase in disputes within blended step families, with 71% agreeing that more complex blended families are the leading cause of legal or planning challenges to business succession or inheritance.

Conflict between children or stepchildren and a surviving parent or step-parent was the most common source of friction in disputes according to 68% of practitioners, followed by unequal treatment of siblings (37%) and conflict between children and stepchildren (27%).

STEP’s research also found that trust and estate practitioners are increasingly providing mediation and other services alongside their legal advice, to help families resolve issues and avoid long and costly disputes that can permanently damage family relationships.

Emily Deane TEP, technical counsel and head of government affairs at STEP, said: ‘Many people are still under the assumption that their assets will go automatically to their loved ones, but this isn’t always the case, especially within blended families where there are children from different relationships.

“A cohabitating partner, children and stepchildren from a previous marriage or civil partnership may be excluded from inheritance even if it was your intention that they would be provided for. Unfortunately, people don’t always realise the unintended financial, emotional and legal consequences of not having a will, or one that is out-of-date until it is too late, and their family is left to pick up the pieces.”

In further independent research commissioned by STEP, 80% of UK adults surveyed said their families weren’t aware of their wishes for when they die. Only 16% of UK adults have spoken to their loved ones about their will and wishes after their death, and where to find their will. Around 3.5 million people in the UK, 7% of respondents, said they would be seeking advice on will or inheritance disputes within the next 18 months.

One in 10 people have already fallen out with family members over money and inheritance issues and 8%, an estimated four million people, said they would definitely dispute a will if they felt they had been unfairly excluded. Among those without a will, an estimated 600,000 people said they haven’t created a will as they are worried that having one will cause family arguments, so are leaving it to their family members to sort it out when they are dead.

Nina Sperring TEP, STEP member and partner at Price Slater Gawne, said: ‘Most of the difficult situations we encounter could have been prevented with careful legal planning and honest conversations. Avoiding discussions about death or money rarely offers families the protection they hope for and can instead create uncertainty, misunderstanding or dispute later on.

“Blended families can be particularly vulnerable, as they often involve informal assurances and assumptions formed many years earlier. Without clear planning and open communication, children from previous relationships may feel overlooked, while surviving partners or spouses may expect priority or security that conflicts with the expectations of other family members.”