LONDON (FIRMS): An introduction to Private Wealth Disputes

The private wealth sector in England and Wales is entering a period of significant change. With change comes uncertainty. Much has been written about the great wealth transfer, shifting and complex family dynamics, and the increasing internationalisation of high net worth families, which are all creating new challenges for succession planning and raising greater risks of disharmony and dispute.

Families, trustees and their advisers are required to be more proactive than ever in anticipating and, where possible, managing disputes. Private wealth disputes increasingly need careful navigation through complex cross-border conflict of laws, whilst considering individual and corporate reputational damage.

The Great Wealth Transfer: Opportunity and Challenge

An unprecedented transfer of wealth across generations is underway, presenting both opportunities and challenges. Competing expectations, blended families and fluid international movement complicate succession planning. The rise in second and third marriages has increased family complexity, making disputes over wills, trusts and family businesses increasingly common.

Some high net worth families are rethinking their approach to inheritance, choosing not to leave substantial fortunes to their children in order to encourage independence and resilience. This shift often stems from concerns about the potentially destabilising effects of sudden wealth.

Evolving societal expectations and greater emphasis on transparency in trusts and governance have changed the landscape for advisers. Family disputes, once private matters, are increasingly conducted in public. Robust dispute resolution mechanisms are essential to help families navigate these challenges effectively.

The “Modern Family” and the Challenge of Construction

Modern family structures – including stepchildren, adopted children, children born via surrogacy or fertility treatment, and unmarried partners – create interpretation challenges for wills and trusts. Many existing documents often use language that does not reflect contemporary relationships, which has led to construction disputes over entitlement. Recent cases exploring the meaning of “children” highlight the importance of careful drafting and regular review of estate planning documents to avoid lengthy, costly litigation and relationship damage.

Families Without Borders

While London remains attractive to international families, the global nature of wealth has seen an increase in disputes with complex cross-border dimensions. Issues such as domicile, habitual residence, forced heirship, choice of law, and the recognition and enforcement of foreign judgments add complexity. Advisers now need to be equipped to navigate these challenges, often working with international counterparts as well as co-ordinating across practice areas (such as reputation protection and tax) to deliver comprehensive solutions.

Complex and Multi-Jurisdictional Trusts – the Role of a Trustee

Global family wealth increasingly requires trusts structured across multiple jurisdictions, creating management and administration complexity. Trustees are now expected to navigate differing legal systems, tax regimes and regulatory requirements while ensuring compliance and protecting beneficiaries’ interests. Documentation gaps, unclear indemnity chains and questions over trustee powers can expose trustees to personal liability and compromise trust integrity.

Regular trust audits have become essential tools for identifying vulnerabilities such as improperly vested assets, unclear beneficiary rights or trustee remuneration issues. Taking a proactive approach helps trustees to manage risk, satisfy insurers and foster transparency, in the hope of reducing dispute likelihood. As wealth internationalisation continues, robust auditing and cross-border expertise are vital for protecting assets and ensuring that structures remain fit for purpose.

Enforcement

Enforcement can be as challenging as winning disputes, especially with assets across multiple jurisdictions. English courts are increasingly handling cross-border enforcement issues, freezing orders and disclosure applications, and foreign court co-operation can assist in ensuring that judgments are effective, rather than merely symbolic.

Plans for Reform?

Legislative reform in the area of private wealth disputes remains relatively rare, but there are notable developments on the horizon. One potential change is the Terminally Ill Adults (End of Life) Bill, which is currently under consideration and has yet to pass the necessary readings. If enacted, the Bill would legalise assisted dying for terminally ill patients, subject to strict safeguards and a determination of capacity.

At present, assisted dying – namely assisted suicide – remains a criminal offence. Recent reported decisions have highlighted the application of the forfeiture rule in assisted dying scenarios, where a person found to have unlawfully killed another is prevented from inheriting under their estate. Should assisted dying become legal, complex questions may arise regarding whether someone who assists a terminally ill relative to die could still be subject to the forfeiture rule.

In addition, in May 2025, the Law Commission published its final report and draft Bill proposing significant reforms to wills law, aiming to modernise a system that has remained largely unchanged for over a century. Key proposals include greater flexibility in the execution of wills, the adoption of capacity tests based on the Mental Capacity Act 2005, enhanced safeguards for vulnerable testators, and clearer rules for electronic wills. These proposals are currently awaiting government review. While it is hoped that the reforms, if adopted, will improve clarity and accessibility, there is likely to be an initial period of uncertainty and potential litigation as practitioners and courts adapt and interpret the new legislation.

These legislative developments reflect the ongoing challenges posed by issues of vulnerability and incapacity. Families should remain vigilant to the risks associated with diminished capacity, undue influence and the potential for exploitation. Proactive measures – such as regular reviews of estate planning documents, capacity assessments, clear communication and careful planning – can help mitigate these risks.

Opportunities and Challenges Ahead

The private wealth disputes landscape in England and Wales continues to evolve rapidly. Families must proactively manage risk, address capacity issues and plan succession carefully. Wealth internationalisation, legislative reform and increased trustee scrutiny present both challenges and opportunities. Through early advice, transparency and robust governance frameworks, families can minimise dispute risk and protect legacies for future generations.