Challenges to charitable legacies are on the rise

Challenges to charitable legacies are on the rise

News (UK)

Challenges to charitable legacies are on the rise, legal experts have told Philanthropy UK. Financial concerns due to the recession and social changes have prompted more families to dispute wills.

Also media interest in high-profile cases means there is greater public awareness that wills can be challenged. And despite concerns prompted by the financial situation, increasing wealth in the UK before the recession means that people have more to gain, and lose, from a dispute over a legacy.

People are less willing to compromise on what they expect to receive through a relative’s will now that property and other investment values are tumbling, Paul Hewitt, a partner in the charity legacy group at Withers, told Philanthropy UK.

“People are facing financial need, whether real or perceived, and they look to what they see as family money,” Hewitt said. “However, it is a mistake to view this as a sea change in the number of challenges to charitable legacies - probate disputes have been on the increase for several years.”

Laura Soley, a solicitor in the charity legacies and disputes team at Bates Wells and Braithwaite said that a major factor in the increase in disputes is the breakdown of traditional family arrangements.

"We have seen several cases where family relationships have broken down and, as a result, a family member has decided to leave all his estate to charity,” said Soley. “Disgruntled family members, who had been hoping to benefit, have then sought to challenge the will."

Concerns over mental capacity as people live longer often prompt these challenges. Meg Abdy, director of Legacy Foresight, consultants who analyse the legacy market, says, “Families may be in a position where they suspect  the person who made the will wasn’t in their right mind.”

Fay Copeland, head of city law firm Wedlake Bell's contentious trust and probate team, points out that more people are choosing to include a legacy to charity in their will, which in turn means that a higher percentage of probate disputes affect charities.

Copeland said clear records made by a solicitor of the discussion over any big changes in a will, a ‘letter of wishes’ to explain motivations, and evidence of ongoing support for a charity can all help to avoid a costly dispute over a will.

Hewitt agrees it is important to get legal advice when making a will, and to keep things up to date with a solicitor, to make sure circumstances such as new dependents don’t have an unforeseen effect on a legacy.

“Professional advice strengthens the chance of your wishes being upheld,” Hewitt said. “However, even then certainty that your wishes will be carried out may be difficult to guarantee because the key witness in any argument over wills is always dead."

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