When an aristocratic heir takes his parents to court over an £85million estate, the case naturally captures attention.
The recent well-publicised lawsuit filed by the Earl of Yarmouth against the Trustees of his family estate, along with his parents for ‘trauma’ caused by not inheriting the family estate – as was expected by him in his early 30s - highlights the emotional and financial complexities of inheritance and trust disputes.
While most families won’t be dealing with an estate of this magnitude, the legal principles remain relevant to anyone navigating the challenges of succession planning, particularly if family assets are held in a trust. Emily Prout, Partner in Thrings’ Private Wealth Disputes team, looks at what you need to know:
The importance of clear estate planning
This high-profile case underscores the importance of clear and legally sound estate planning, and – in particular - careful consideration of whether a family Trust is an appropriate way for assets to be looked after, particularly if there is inter-generational tensions Disputes over inheritance or trusts are not uncommon, families can find themselves embroiled in costly and distressing legal battles.
Under UK law, an individual can place any of their assets into a Trust structure either during their lifetime (which means they give up ownership of the assets) or via their Will upon their death. In doing so, they nominate Trustees, either individuals or trust corporations, whose job is to look after the assets in the Trust for the benefit of named individuals (normally family members), called ‘beneficiaries’. Trustees normally have wide powers to deal with the assets.
Whilst Trusts are an often-used legal vehicle, particularly in large family estates, the Earl’s case highlights that the management of Trusts by Trustees can cause tension, particularly if the Trustees do not agree with family members as to how and when Trust assets should be dealt with or distributed. A beneficiary does not have a right to compel a Trustee to act in a certain way, but if they feel that a Trustee is not carrying out their role properly, they can seek an order from the court to remove them.
The Earl’s case started as an application to the court to remove the Trustees, who he felt were not managing the family estate properly but – in joining in his parents in respect of his belief he would inherit some of the family estate at age 30 – it appears to be a rare instance of a potential heir arguing not just financial loss but emotional trauma due to exclusion. It highlights how inheritance disputes can become deeply personal and contentious. Seeking legal guidance early can help mitigate such risks.
Protecting your estate from disputes
To safeguard your estate and prevent family conflicts, consider the following steps:
The recent legal battle involving an aristocratic inheritance dispute serves as a stark reminder of why proactive lifetime and estate planning is essential. Ensuring your Will is clear and legally robust can prevent unnecessary legal wrangling and preserve family harmony.
Whether you are drafting your first Will, updating an existing one, or facing conflict over an inheritance, Thrings’ Private Wealth Disputes lawyers provide expert guidance to protect your interests. By offering practical, clear and compassionate advice, the team help you navigate these sensitive issues with confidence and security. For more information or to discuss your estate planning needs, get in contact today.