February is often a time when early-year intentions begin to turn into practical decisions. With tax changes on the horizon and continued shifts in how families live, work and plan for the future, it is a timely moment to assess whether existing arrangements remain fit for purpose.
In this month’s newsletter, we explore a range of developments affecting wills, estate planning and later-life decision-making. From changing family structures and the growing role of property wealth in retirement, to recent court cases highlighting risks around capacity, executors, trustees and powers of attorney, these stories underline the importance of clear planning and informed advice at every stage of life.
‘Chosen family’ increasingly named as insurance beneficiaries
Lifelong friends and unmarried partners are the most commonly nominated non-blood beneficiaries. With 8.4 million people in the UK living alone, financial priorities are increasingly extending beyond immediate family. Charities and community causes are also being named more frequently, with gifts to charity in wills rising by around 15% year on year.
The findings suggest that people are increasingly aligning formal financial arrangements with the relationships that matter most to them, rather than traditional definitions of family.
Insurance nominations do not replace a will. Where people wish to benefit friends, unmarried partners or charities, up-to-date wills and wider estate planning are essential. Without clear instructions, estates may still pass under intestacy rules that do not reflect modern family structures or personal wishes.
Equity release lending grows 11% as property wealth plays a bigger role in retirement
New figures from the Equity Release Council show that equity release lending rose by 11% in 2025, reflecting the increasingly important role property wealth plays in supporting retirement income and financial resilience in later life.
At the same time, research suggests property wealth is still often overlooked in retirement planning. Around three-quarters of homeowners aged 40 and over said they had never discussed equity release with a professional, despite their home frequently being one of their most valuable assets. The research also highlights persistent misconceptions, including a lack of awareness that modern equity release products can allow homeowners to move house, include no-negative-equity guarantees, and still enable property to be passed on to children.
As people live longer and pension savings increasingly fall short of retirement needs, property wealth is likely to form a larger part of many individuals’ overall retirement funding. Equity release will not be suitable for everyone, but for some it can play a role within a wider, carefully considered retirement and estate planning strategy.
The findings underline the importance of taking a holistic approach to later-life planning that considers pensions, property, and potential inheritance tax implications together, rather than in isolation.
Will overturned as High Court clarifies testamentary capacity and mental illness
The High Court has overturned a 2014 will made by Michael Gwilliam, who died in 2022, after finding that he lacked testamentary capacity due to late-onset schizophrenia.
The court accepted that Mr Gwilliam’s delusional beliefs, including unfounded accusations that his four daughters were stealing from him, directly influenced the terms of the will. The 2014 will significantly reduced the daughters’ inheritance in favour of other family members. Despite evidence from the will writer that capacity was believed to be present, the court placed little weight on this and ruled the will invalid, meaning the estate passed under the intestacy rules.
The case underlines the importance of careful capacity assessment and contemporaneous medical evidence when preparing wills for vulnerable individuals, particularly where mental illness may affect decision-making.
Executors removed after “seriously unreasonable behaviour”
In a January 2026 High Court decision, Anne Elizabeth Helme and Daniel Jones were removed as executors of the £3.7 million estate of Mary Organ and ordered to pay the beneficiaries’ legal costs after the court found their conduct amounted to misconduct.
The court upheld multiple complaints, including prolonged delays in administering the estate, failures to notify beneficiaries of their interests, conflicts of interest and attempts to accelerate property sales despite an injunction application. The judge described the executors’ behaviour as “out of the norm” and ordered them to pay costs on the indemnity basis, with no right to recover their own legal fees from the estate.
Executors must act promptly, transparently, and free from conflicts of interest. Failure to do so can result in removal and personal financial liability.
Concerns raised over republication of unclaimed estates list
Concerns have been raised about the Government Legal Department’s decision to republish the Bona Vacantia unclaimed estates list, which had been taken offline last summer following a BBC investigation into its alleged use in fraud.
The list was reinstated in January with reduced information, and the Government Legal Department said a review found no evidence that it had been the source of fraud. However, critics have warned that restoring public access without stronger safeguards risks re-exposing the probate system to abuse.
Previous allegations suggested the list had been used by criminals to identify estates where individuals died without known heirs, enabling fraudulent wills to be submitted and estate assets accessed or sold before issues were detected.
The debate highlights the ongoing challenge of balancing transparency with protection in the probate system, and the importance of robust checks and oversight to prevent fraud affecting vulnerable estates.
‘Unreasonable’ trustees ordered to pay costs in land dispute
In a recent Upper Tribunal decision, trustees were ordered to pay legal costs after the court found their conduct in a land dispute to be unreasonable.
The case involved Stuart Pilbrow, who applied to be registered as the owner of land by adverse possession, and Nicola Jane Glanville and Lady Eileen Audrey Blount, the registered proprietors of the land. The respondents objected to the application but failed to disclose at an early stage that part of the land was held on trust for a family member, which amounted to a complete defence.
After Mr Pilbrow withdrew his application, the tribunal initially made no order as to costs. However, on appeal, the Upper Tribunal found that the trustees’ failure to disclose the trust’s existence had led to a year of unnecessary litigation and substantial wasted costs.
Judge Elizabeth Cooke described the proceedings as “pointless” and said the respondents’ conduct was so unreasonable that it should have cost consequences. The trustees were ordered to pay Mr Pilbrow’s costs of the First-tier Tribunal proceedings.
The decision is a reminder that trustees must understand their duties and act transparently. Failing to disclose key information, even inadvertently, can expose trustees to personal liability for legal costs.
£5m estate dispute highlights power of attorney risks
The dispute centres on actions taken while Mrs MacDougall was alive, when Mrs Thomas acted under a power of attorney. Mrs Thomas has admitted exceeding her authority as an attorney but denies acting dishonestly, saying she misunderstood what the role permitted.
Mr MacDougall is challenging his mother’s final will and a series of lifetime gifts and property transactions, alleging that substantial sums were spent for the benefit of his sister and her family at a time when their mother lacked capacity.
The case raises issues of alleged financial abuse, undue influence and the limits of an attorney’s powers. It is due to proceed to a High Court trial later this year.
For families, the case is a clear reminder that attorneys must act strictly in the donor’s best interests and within the scope of their legal authority. Even well-intentioned actions can lead to costly disputes if powers are exceeded or records are unclear.
Inheritance tax changes for business owners this April
From 6 April, important changes to inheritance tax will affect business owners and farming families. New limits on Business Property Relief and Agricultural Property Relief mean that more family businesses could face inheritance tax bills on death, even where assets have previously passed tax-free.
Under the new rules, the combined value of assets qualifying for 100% relief will be capped at £2.5 million per individual. Any value above this will receive only 50% relief, resulting in an effective inheritance tax rate of 20% on the excess. Unused relief can still be transferred between spouses or civil partners, allowing couples to protect up to £5 million between them.
For many established businesses and farms, this represents a significant reduction in protection. As business estates are often asset-rich but cash-poor, an unexpected inheritance tax bill can force families into rushed sales or difficult funding decisions.
With April approaching, the number of planning opportunities is narrowing. Actions taken before 6 April may no longer be available after that date or may trigger immediate tax charges. Early advice can help business owners review which assets qualify for relief, consider succession and trust planning, and ensure business decisions align with wills and wider estate plans.
If you would like to understand how these changes may affect your business or family, now is the time to seek advice.
Keeping plans aligned with changing circumstances
The issues highlighted this month show how quickly personal, financial and legal circumstances can change. Whether through evolving family relationships, increased reliance on property wealth, or tighter scrutiny of those acting in fiduciary roles, the common thread is the need for plans that are clear, up to date and properly thought through.
Regular reviews of wills, estate plans and related arrangements can help ensure your wishes are carried out as intended, reduce the risk of disputes and provide greater certainty for those you care about. If any of the topics in this newsletter raise questions about your own situation, or if you would like to review your current arrangements, the team at Clarke and Wright would be pleased to help. Please contact us today.