Probate under pressure: emerging challenges and the executor's role in 2025

Looking ahead, 2025 represents both a challenge and an opportunity. The evolving inheritance tax landscape has introduced new financial and administrative complexities.

Claims against executors in the High Court increased by 21% in 2023, reaching 87 cases compared to 72 the previous year¹, while the total number of contentious probate disputes rose to 122 in 2023, up from 116 in 2022².

These statistics reveal that, what should often be a straightforward process of administering a loved one’s estate is increasingly giving rise to disputes, delays, and rising costs. As 2025 unfolds, the challenges for executors and their advisers are likely to intensify. This article examines the key factors that can cause a straightforward probate process to escalate into a contentious matter and the strategies legal advisers can employ to effectively navigate these challenges on behalf of their clients.

The Rising Tide Of Probate Disputes: Our Predictions

In our view, the increase in contentious probate cases may be attributed to a combination of financial and social factors that have made estate administration more challenging and, as a result, prone to conflict. There are several factors that we consider will have an impact on contentious probate cases.

• Economic downturns, financial pressures, and rising redundancies have historically correlated with an increase in probate disputes, as individuals facing financial difficulty are more likely to rely on anticipated inheritances. We anticipate that the ongoing cost-of-living crisis is likely to contribute to a sustained rise in the number of challenges over the administration and distribution of estates. 
  
  
• The increasing financial reliance of younger generations on their parents—often referred to as the “Bank of Mum and Dad”- may significantly shape the future of estate and probate disputes. Without clear documentation and communication, we may see family members dispute whether parental financial contributions were outright gifts or loans expected to be repaid to an estate on the death of a parent, for example. If a significant proportion of parental wealth is distributed during their lifetime to fund adult children’s needs, there may be limited assets left in the estate, which we consider is likely to trigger disputes among heirs who expected a larger inheritance. 
  
  
• The recent Supreme Court decision in Hirachand³ which ruled that success fees under Conditional Fee Agreements cannot be included in awards for financial provision under the Inheritance (Provision for Family and Dependants) Act 1975 is likely to have significant implications for these claims. By removing the possibility of recovering success fees as part of the award, the judgment effectively increases the financial risk for claimants considering litigation under the 1975 Act and may encourage earlier settlement of cases to risk averse claimants. We expect the decision in Hirachand is likely to influence how 1975 Act claims are approached and resolved. 

• Addictions, whether related to substance abuse, gambling or other dependencies, can significantly impact contentious probate cases. For example, the rise in gambling addiction, reflected in the doubling of referrals to NHS gambling clinics in recent years, adds to the executors’ dilemmas. Testators may choose to exclude family members who would ordinarily expect to inherit from their estate because of concerns about financial misuse, leading to likely claims from disappointed beneficiaries. 

Recent Tax Changes In Probate: What Challenges To Expect In 2025

Recent changes to inheritance tax (IHT) and tax reliefs may become a flashpoint for conflict. Notably, reforms to agricultural property relief (APR) and business property relief (BPR) are scheduled to come into effect from 6 April 2026. Under the new rules, the full 100% relief for APR and BPR  will be capped at £1 million of the combined value of agricultural and business property within an estate. Assets exceeding this threshold will be eligible for a reduced relief rate of 50%, resulting in an effective IHT rate of up to 20% on the excess value.

These changes have raised concerns within the farming community, with estimates from the National Farmers’ Union (NFU) suggesting that approximately 75% of UK commercial family farms could be affected⁴. Farmers argue that, while they may hold valuable assets, they often lack liquidity, potentially forcing the restructure or sale of farmland to meet tax obligations. This situation has led to widespread protests, reflecting fears that the reforms could threaten the viability of family-run farms.

Additionally, from April 2027, most unused pension funds and death benefits will be included within the value of a person’s estate for IHT purposes. This change could result in significant tax liabilities for beneficiaries, with combined income tax and IHT rates potentially reaching up to 76% on inherited pension funds⁵.

These changes introduce new challenges in estate planning and administration. Executors must navigate these complexities carefully, as mismanagement or misunderstandings related to tax liabilities can become significant sources of contention among beneficiaries. in our view, proactive communication with beneficiaries and taking professional advice are essential to mitigate potential disputes arising from these developments. 

Executors In The Spotlight

The growing number of claims against executors and the rise in probate disputes generally in our view highlight a clear trend: executors are increasingly finding themselves under the spotlight and at the centre of probate disputes. Many executors, particularly those without professional legal experience, underestimate the complexity of the executor role and the potential for conflict.

As the role of executors becomes increasingly complex, disputes between executors and/or beneficiaries are emerging as a growing trend in contentious probate matters. Looking ahead, it is our view that we are likely to see a rise in applications for independent administrators, particularly in estates involving high-value or complex assets. 

For executors, this highlights the importance of clear communication and collaboration, as well as the need to seek early professional advice to avoid reaching an impasse. 

The executor’s role, once largely administrative, has now evolved into one requiring acute diplomacy, financial acumen, and a clear understanding of legal obligations and fiduciary duties.

Preserving Harmony In Probate: Prevention And Resolution 

To navigate these challenges, executors must take a proactive approach to their duties in our view, executors should consider the following steps to help minimise the risk of disputes: 

• Seek Professional Advice Early: Executors should not hesitate to consult solicitors or tax advisers where needed. This proactive step can help ensure compliance with legal and tax obligations and reduces the risk of errors by executors that could trigger disputes.
• Teaming up: In today’s increasingly complex probate landscape, executors are often faced with administering estates that include unusual or specialised assets, such as cryptocurrency, fine art and intellectual property. Managing these types of assets requires expertise making it crucial for executors to assemble a team of specialists to guide them. Building an appropriate advisory team not only protects executors from potential liability but also fosters transparency and confidence among beneficiaries.
• Communicate Transparently: Keeping beneficiaries informed about the progress of the estate administration is critical. Clear and regular updates about valuations, distributions, costs and timelines can prevent misunderstandings and build trust.

Closing Reflections For 2025 And Beyond

Looking ahead, 2025 represents both a challenge and an opportunity. The evolving inheritance tax landscape has introduced new financial and administrative complexities. These challenges, coupled with rising estate values and increasingly intricate family dynamics, mean that the potential for disputes continues to grow. 

However, advisers have an opportunity to provide proactive, solutions-oriented strategic guidance, helping executors anticipate and address potential issues before they escalate. 

Originally published in the March 2025 issue of ThoughtLeaders4 Private Client magazine by TL4: 81601_TL_Private_Client_Issue_18v11_(1).pdf

1 IFA Magazine 2024: https://ifamagazine.com/21-rise-in-executors-of-wills-being-sued-in-the-high-court-87-cases-in-past-year/
2 Family Court Quarterly Statistics, 2024: https://www.gov.uk/government/statistics/family-court-statistics-quarterly-october-to-december-2023
3 Hirachand (Appellant) v Hirachand and another (Respondents) [2024] UKSC 43
4 https://www.nfuonline.com/updates-and-information/an-impact-analysis-of-apr-reforms-on-commercial-family-farms/
5 https://www.ft.com/content/ca4ffbeb-7437-4cbf-97d4-96633615e75c