United Kingdom: Wills/ Intestacy/ Estate Planning

One of the most striking findings from the recent Global Family Business Think Tank was the near unanimity among experts that inheritance disputes pose a serious threat to family enterprises. Ninety five per cent of contributors agreed that disputes over inheritance represent a major risk to continuity.

A clearly worded Will is not, on its own, sufficient to prevent an adult child from making a claim against your estate. It is an understandable assumption that it would be. If you have set out your wishes in a properly executed legal document, it seems reasonable to expect those wishes to be respected. The Inheritance (Provision for Family and Dependants) Act 1975 complicates that picture significantly, and a High Court decision handed down last year illustrates just how exposed an estate can be when planning has not kept pace with life.

Since October 2014, the rules governing who inherits when someone dies without a Will (the ‘Rules of Intestacy’) have remained largely unchanged.

For many families, inheritance tax planning is not about minimising a number on a balance sheet. It is about preserving something far more personal. A home that has been lived in for generations. Land that carries history as much as value. A business that represents decades of work.

Family limited partnerships offer US-UK families a flexible alternative to trusts for wealth transfer, particularly following the UK's April 2025 inheritance tax changes. This structure provides tax-efficient gifting opportunities while introducing younger generations to wealth stewardship, though careful planning is required to navigate cross-border tax implications and US estate tax restrictions.

Family investment companies are gaining traction as wealth planning vehicles in the UK, offering potential tax advantages and succession planning benefits through carefully structured share classes. However, their effectiveness depends heavily on asset profiles, family objectives, and international considerations, with complex technical rules requiring careful navigation to avoid potential pitfalls.

Olivia Piercy, Partner in our Family & Relationships department, discusses how the Government’s latest White Paper on the financial aspects of relationship breakdown marks an important step in recognising...

For families with significant assets, deciding how wealth should be held and passed on can be as important as deciding how it is invested.

When drafting or updating your Will, understanding the financial and tax implications can significantly impact how your estate is distributed. From inheritance tax calculations and residence nil rate bands to charitable...