With evolving family dynamics, unequal inheritances are becoming more common — and more contentious. In this insightful article, we’re grateful to Scott Taylor, Partner in Private Wealth Disputes at Moore Barlow, for reminding us how and why financial advisers can guide clients through sensitive conversations, structure fair and tax-efficient estate plans, and help prevent disputes, ensuring wealth transitions smoothly across generations.
For the majority, in the past inheritance was relatively simple. Someone died, and assets were split equally among children or family members.
With shifting societal attitudes, blended families, and evolving financial needs more people are choosing to distribute their estates unequally.
Recent findings from top-100 law firm Moore Barlow have revealed nearly half (48.1%) of Britons believe that leaving unequal inheritances to children or grandchildren is fair, often sparking disputes that could slow down the probate and inheritance process, or at worst have the potential to split families apart for good.
The survey also revealed that less than half of respondents feel very comfortable discussing their will, although one in ten worry their inheritance decisions could create family tension. And given that only 56% of respondents have an up-to-date will, it’s clear disputes could arise.
Interestingly, more men (52%) than women (41%) feel comfortable leaving unequal inheritances, perhaps pointing to gender imbalances when it comes to who tends to inherit the lion’s share of an estate.
It’s evident that there is complexity surrounding modern estate planning. And due to the complicated capital taxes landscape, it is becoming increasingly likely that people will turn to financial advisers to support their overall financial planning.
With growing uncertainty over how wealth should be distributed, financial advisers have an opportunity to provide clients with invaluable support. From clarifying financial goals to ensuring legal and tax efficiencies, you can help clients navigate difficult decisions while reducing the risk of family disputes.
Encouraging open conversations
Many clients find discussing their will uncomfortable, but proactive conversations are the best way to prevent misunderstandings and future legal challenges.
Stress the importance of clients engaging with their beneficiaries early on, setting clear expectations and explaining their decisions. The tax and planning landscape is full of jargon and terms that are complicated to the layperson, and can be difficult to understand at what may already be a high stress time. Your role as an IFA is to cut through that, break things down and explain them in an easily digested way that can be communicated to all affected parties.
Reducing the risk of legal disputes
Wills that leave unequal inheritances are more susceptible to being contested, particularly if they are unclear or perceived as unfair. Disputes can drag on for years, and one survey showed that 3 in 4 of us will be involved in some kind of dispute, showing just how common it is.
Family feuds often happen when plans about a person’s will are not talked about during their lifetime, so the approach this is to make sure your client’s wishes are clear as to why they have made the provisions they have and give those named plenty of time to talk things through. Ensure your clients document their reasoning thoroughly, seek legal counsel, and use financial structures such as trusts to safeguard assets and intentions.
Balancing fairness and financial need
Fairness does not always mean equality. Advisers can help clients assess their children’s differing financial circumstances, such as supporting a child with disabilities or recognising caregiving responsibilities.
Creating a structured approach to fairness, rather than an arbitrary decision, can lead to better understanding and acceptance among family members. With regard to rural clients, it is often the case that one child is more involved in the farm than others and, as a result, a greater share passes to that particular child.
We try to structure this by way of a partnership agreement which sets out the relevant interests. Disabled beneficiaries may at times, receive an unequal share of the estate compared to their siblings. I have had clients who have wanted to leave a greater share due to the needs of that particular beneficiary but also, I have had clients who have said that their disabled child doesn’t require funds because their needs are already being met. I currently have a client who has made provision in her will to leave her estate equally between her children but with a hotchpot provision stating that any gifts made during lifetime will be taken into account. The end result will be that the beneficiaries will receive unequal shares via the testatrix’s will.
All examples that could be tricky to navigate, but with planning and communication, all parties involved can understand what’s been left, to who, and crucially, why.
Considering charitable giving
With 21% of respondents believing prioritising charities over family is fair, financial advisers should guide clients on how to structure philanthropic giving effectively. Research shows that 21% of people aged 40 and over have included a charitable gift in their will and in 2024, charitable donations made through wills in the UK reached a record £2.1 billion. High-value bequests – those exceeding £1 million – increased by 33% from the previous year, totalling £1.1 billion and accounting for 54% of the overall legacy giving. These are big numbers.
This surge in substantial charitable bequests is partly attributed to individuals seeking to reduce inheritance tax liabilities. As an IFA you know that gifts to UK charities are exempt from IHT, and leaving more than 10% of an estate to charity can reduce the IHT rate on the remaining estate from 40% to 36% – but your clients may not, so explaining it clearly and in a way that ensures that clients’ values are reflected in their estate plans is key.
Keeping wills up to date
Given that only 56% of respondents had an up-to-date will, financial advisers should remind clients to review their estate plans regularly. Major life events such as marriage, divorce, new grandchildren, or significant financial changes can all necessitate updates to their wills and estate plans. If you have a long-term relationship with a client, speak to them on a regular basis and don’t just focus on the now but the future. Wills should be updated when any change occurs, on major life events, changes in tax regime – and more regularly the older people get or if they are sick.
Legal considerations and the role of wealth disputes experts
With inheritance disputes on the rise, financial advisers have to stay informed about the legalities. Make sure wills are legally valid and clearly written to minimise the chance of being contested; look into the use of trusts to protect assets and manage distributions over time; and understand family provision claims, where disinherited or disadvantaged beneficiaries may challenge a will.
And by working alongside legal professionals, financial advisers can help clients structure their wealth to align with their wishes while minimising future legal complications. A team of experts will be always able to deliver more comprehensive advice that benefits the client.
As attitudes towards inheritance shift, financial advisers play an essential role in helping clients navigate complex estate planning decisions. Encouraging transparent conversations, addressing potential disputes proactively, and integrating effective legal and financial strategies can lead to smoother transitions of wealth for all involved. With nearly half of Britons supporting unequal inheritance, coupled with new demographics such as blended families and changing inheritance laws, financial advisers need to be prepared to guide their clients through what can be a complex situation.
