Two in five advisers (41%) have seen a increase in inheritance disputes within blended families, fuelled by a lack of communication, according to a new report.
Three quarters (71%) of advisers surveyed by trust and estate professionals trade body STEP said more complex blended families were the leading cause of legal or planning challenges to business succession or inheritance.
Conflict between children or stepchildren with a surviving parent or stepparent was the most common source of friction in disputes, according to 68% of those surveyed, followed by unequal treatment of siblings (37%) and conflict between children and stepchildren (27%).
Conflict is being fuelled by a lack of communication, with 80% of UK adults surveyed by the trade body saying that their family was not aware of their wishes for when they die. Around a third (35%) did not currently have a will, and only 16% had spoken to their loved ones about their wishes.
Those between 45 and 54 were the least likely to have a will (50%), closely followed by those between 55 and 64 (41%).
Almost one in ten (7%) of respondents said they were planning on seeking advice on wills or inheritance disputes within the next 18 months.
One in ten had already fallen out with family members over money and inheritance issues and 8% said they would definitely dispute a will if they felt they had been unfairly excluded.
According to three quarters (77%) of advisers surveyed by STEP, the great wealth transfer among high-net-worth families is happening, with wealth being passed on to younger generations, which is also fuelling more disputes.
Nina Sperring, partner at Price Slater Gawne, said: “Most of the difficult situations we encounter could have been prevented with careful legal planning and honest conversations. Avoiding discussions about death or money rarely offers families the protection they hope for and can instead create uncertainty, misunderstanding or dispute later on.
“Blended families can be particularly vulnerable, as they often involve informal assurances and assumptions formed many years earlier. Without clear planning and open communication, children from previous relationships may feel overlooked, while surviving partners or spouses may expect priority or security that conflicts with the expectations of other family members.”