The Wealth Report 2026

The BDO Wealth Analysis (the Wealth Report), published annually, examines the views of high-net-worth individuals and uses data to summarise their current approach to risk and financial management. HMRC has previously defined ‘High-Net-Worth’ individuals as those with assets exceeding £2 million.

Wealth and Family Disputes

It was previously estimated that as many as 10,000 people dispute a Will every year. These disputes often occur at the point in which the individual has sadly passed away and the contents of the Will begin to be discussed.

The data

The Wealth Report highlights that 90% of High-Net-Worth Individuals experienced some form of family disagreement over succession planning. Of these individuals, 34% stated that decisions regarding inheritance (i.e. how and to whom the estate passes) were the cause of family disagreements.

In addition, 45% face disagreement over roles and responsibilities in the family business after death.

The solution

The Wealth Report notes that only 30% of High-Net-Worth individuals surveyed have a clear succession plan. Succession planning involves more than simply having a Will; specialist legal and financial advice can help ensure that an effective plan is put in place. More in-depth succession planning can, where appropriate, involve family members to help address potential disagreements before they escalate.

Careful succession planning for business interests is also essential, with this being the primary source for High-Net-Worth individuals’ wealth. This should include arrangements to facilitate the smooth transfer of wealth and control, as well as ensuring plans are in place during the individual’s lifetime, such as:

·        Business LPAs;

·        Tailored gifts of business assets; and

·        Clear shareholder agreements that set out what will happen on a shareholder’s death.

These arrangements should be reviewed regularly to ensure the interests of all family members remain balanced and to help minimise the risk of future disputes.

Tax

A continuing concern for High-Net-Worth individuals is tax mitigation.

The data

The Wealth Report highlights that 66% of High-Net-Worth individuals surveyed have, at some point, considered relocating to mitigate tax. The Wealth Report also highlights that the government’s changes to Inheritance Tax have been a motivating factor on decisions to relocate.

Of the individuals surveyed, 33% noted that incentives for entrepreneurship were a motivating factor, while 52% said that the simplicity of a country’s tax law would attract them to relocate.

The solution

Although tax can be complex and unpredictable, early input from legal and financial advisers is important. A clear plan can be prepared at the outset and reviewed regularly to ensure tax mitigation remains properly addressed. This may include regular review meetings to confirm that the most appropriate legal strategies are in place, as well as ensuring Wills are carefully tailored to support effective tax planning.

Conclusion

What is clear is that there is growing uncertainty over succession planning in the UK. It is therefore crucial that clearly formulated plans are put in place at an early stage, encouraging collaboration and transparency, thereby avoiding potential future family disputes and ensuring a clearer focus on tax mitigation.

If you would like to start thinking about succession planning, please contact our Wills, Trusts and Probate Team by email at info@leathesprior.co.uk or by telephone at 01603 610911.