When you think about what defines your legacy, it’s often the intangibles that spring to mind – memories of great moments, good things we’ve achieved, or principles we’ve proudly lived by.

But these elements, however meaningful, are not the only things we leave behind. Matter of fact as it might sound, legacies also have a monetary value when considering the accrued wealth, assets and belongings that constitute your estate. As such, a major component of anyone’s legacy involves the decisions around what happens to that estate and how it will be distributed to beneficiaries.

In the difficult aftermath of death, those with an effective legacy plan undoubtedly provide a clearer pathway for grieving loved ones, maximising the likelihood that personal wishes will be fulfilled and minimising the risk of causing anguish.

Wills: The write approach

Wills are a crucial pillar in this process. As an official legal document, a will provides binding instructions on how your money, property and possessions should be apportioned after you’re gone.

Although making a will is voluntary, strict rules apply if it is to be deemed legally valid. Namely, you must be at least 18 years of age and of sound mind, and the document must be made in writing.

You must be clearly observed signing your will in the presence of two witnesses who are both over 18. Witnesses must also sign the same document in your presence, although they do not necessarily need to sign it at the same time as each other. And neither witness nor their married partners can be left anything in your will.

With more complex estates and personal situations, it can be advisable to seek help with will writing to ensure it is carried out correctly. Whether you employ a regulated law firm or other professional in this regard, it is crucial to understand precisely what service you are buying and to verify the credentials of the provider. Guidance on this matter is available from the Competition and Markets Authority (CMA).

Avoiding complexity and confusion

Despite the importance of wills to estate administration, a surprising number of people die without one in place. In 2024, this situation reached a five-year high, according to Ministry of Justice data. In total, there were 51,140 estates left behind without a will last year compared with 43,600 in 2023 – a rise of 17%.

This scenario – known as dying intestate – can introduce a great deal of complication and confusion, since the estate will be distributed according to rules of intestacy and not according to the wishes of the deceased. These rules automatically prioritise family members in a specific order, and do not, for example, provide rights for unmarried partners or stepchildren. And if no surviving relatives exist, the person’s estate can pass to the Crown.

With the potential for those excluded to make claims on the inheritance, it is not difficult to see how this can create the conditions for family conflict. This is backed up by research suggesting that more than a third (38%) of people in the UK are prepared to go to court if they deemed the inheritance they received to be unfair or not what they expected.

Friction among families

The number of such disputes is also on the rise: it is estimated there was a 5% increase in court claims related to contested wills between 2023 and 2024, with more than 10,000 cases reported per year.

This trend is forecast to continue in line with the transfer of significant wealth from baby boomers, many of whom have benefited from rising property prices, to younger generations, many of whom are facing financial pressure in the housing market.

Change is afoot, however. The Law Commission recently released a report on reform of wills in England and Wales, with a view to updating a legal framework that dates back to 1837 and is deemed to be out of alignment with the modern era and its ageing population.

Proposals include a lowering of the age at which a will can be made to 16, the introduction of electronic wills, and an update to the test for testamentary capacity.

In addition, the changes would abolish the automatic revocation of wills upon marriage. This relates partly to the issue of ‘predatory marriages’, since intestacy rules mean an individual’s estate would be inherited by the new spouse if their will is not updated to reflect a new family dynamic.

The recommendations have been put before the government, and they will be subject to review before any potential changes to the laws around wills are made.

Peace of mind through planning

But even with an updated legal framework, it is difficult to imagine that inheritance disputes will disappear. This underlines the importance of making sure the plans for your estate and your financial legacy are fully up to date and truly reflect your wishes.

Broaching these conversations with family members might be difficult (and it is something that few people do), but it can be very beneficial in the long term, making lives easier in the difficult time that follows the loss of a loved one.

By the same token, having open discussions ahead of time with professional advisers is also invaluable for ensuring your estate planning is all in order and that you leave behind the legacy you have envisaged.

The information supplied is based upon our understanding of current UK law and HM Revenue and Customs (HMRC) practice. The Financial Conduct Authority does not regulate Wills and Probates.

The information contained within this communication does not constitute financial advice and is provided for general information purposes only. No warranty, whether express or implied is given in relation to such information. Vintage Wealth Management or any of its associated representatives shall not be liable for any technical, editorial, typographical or other errors or omissions within the content of this communication.