When Lifetime Decisions Lead to Private Wealth Disputes Claims
Many inheritance disputes begin before a person dies. Concerns about mental capacity, undue influence or financial abuse often arise during a person’s lifetime and later become the basis of contentious probate claims or Court of Protection disputes.
These issues commonly arise where vulnerable individuals make significant financial decisions shortly before death, including changes to their will, large lifetime gifts or the appointment of attorneys under a Lasting Power of Attorney.
Understanding how these disputes arise can help families, executors and advisers address concerns at an early stage.
Mental Capacity and Estate Planning
Under English law, a person must have mental capacity to make decisions about their finances and estate planning. This includes the ability to:
- make or amend a will
- transfer property or make substantial gifts
- appoint attorneys under a Lasting Power of Attorney
- manage financial affairs
Capacity is assessed in various ways and under the Mental Capacity Act 2005 and is both decision-specific and time-specific. A person may have capacity to make some decisions but not others, and capacity may fluctuate in cases involving dementia, illness or cognitive impairment.
Disputes often arise where a will or financial decision was made during a period when capacity was in doubt.
Undue Influence and Pressure in Will Making
Another common cause of estate disputes is undue influence.
Undue influence occurs where someone is pressured or manipulated into making decisions about their estate that they would not otherwise have made. This may arise in situations involving:
- dependency on carers or relatives
- isolation from other family members
- sudden changes to long-standing estate plans
- large transfers of wealth to a single individual
Proving undue influence can be complex and requires careful analysis of the circumstances surrounding the decision.
Financial Abuse and Attorney’s or Deputies
Concerns about financial abuse by attorneys or deputies are also increasingly common.
Where someone loses capacity, attorneys appointed under a Lasting Power of Attorney or deputies appointed by the Court of Protection may take control of financial decisions. While most act responsibly, disputes can arise where there are allegations of:
- unauthorised gifts
- misuse of funds
- transfers of property
- decisions that benefit the attorney personally
In such cases, applications may be made to the Court of Protection to remove an attorney or deputy and investigate financial conduct.
The Link between Court of Protection and Private Wealth Disputes
Many disputes involving capacity or financial abuse during lifetime later lead to private wealth disputes.
After death, families may challenge estate arrangements through claims such as:
- will validity disputes
- claims based on undue influence
- proprietary estoppel claims
- claims under the Inheritance (Provision for Family and Dependants) Act 1975
Early legal advice can often help protect vulnerable individuals and prevent disputes from escalating.
Seeking Legal advice
Disputes involving capacity, undue influence and financial abuse require careful investigation of both lifetime financial decisions and estate planning arrangements.
Specialist advice is particularly important where concerns arise regarding:
- the validity of a will
- lifetime transfers of wealth
- actions taken by attorneys or deputies
- potential claims against an estate
Addressing these issues promptly can help protect vulnerable individuals and ensure estates are administered fairly and lawfully.
If you are concerned about capacity, undue influence or the handling of an estate contact Alastair Goggins. Or to find out more about how we can assist you with Estate Disputes click here.