Inheritance Disputes and Market Volatility: Market Uncertainty is the New Normal

Economic uncertainty affects more than just your portfolio, it can lead to serious family disputes over inheritance. When a loved one dies leaving shares, investments, or business interests, sudden market changes can distort the value of an estate.

This article explores why market volatility matters in probate, how events like Trump’s 2025 tariff proposals impact estate values, and how families can protect themselves.

Why do stock market fluctuations matter in probate?

When a Will divides an estate between fixed and residuary beneficiaries, the value of shares at the date of death or sale can dramatically affect outcomes. For example:

If shares drop after death but before sale, the total estate value may shrink
If a fixed legacy is paid first, residuary beneficiaries may receive less or nothing

Disputes often arise when executors delay selling shares, beneficiaries allege poor decision-making and family members believe they’ve been treated unfairly.

Trump’s tariff proposals

More recently you will have seen Donald Trump proposed 10% tariffs on all imports and 25% duties on UK steel and car exports. This news caused a sharp drop in some FTSE-listed manufacturing and export stocks. This is a prime example of how global politics can impact local estates. If a deceased person held stocks in affected companies, their value may have plunged, creating tensions between beneficiaries.

Executors can face accusations of negligence if they wait too long to act or fail to seek professional advice. Yet they also risk criticism for selling too early. It’s a fine balance.

The Broader Economic Impact on Probate

Please be aware that market volatility is not limited to breaking news stories. Economic downturns, inflation, interest rate changes, and sector instability all affect estate valuations. This matters most when:

The estate includes a large share portfolio
The Will lacks guidance on investment strategies
There is no professional executor with financial expertise

During recessions or inflation spikes, disputes often arise over timing, valuations, and asset distribution. Estate planning that once made sense may seem outdated or unfair in new economic conditions. This is why it is important to review wills regularly to ensure that they are drafted as best as they can be.

Legal considerations for executors

Executors have many duties, one such duty is fiduciary. They must act in the best interests of all beneficiaries. Of course, volatile markets make this harder. Claims for breach of duty, maladministration, or unfair distribution are increasing.

Particularly common are applications under section 50 of the Administration of Justice Act 1985 to remove executors seen as ineffective or conflicted. Problems arise when:

Executors fail to diversify or liquidate high-risk holdings
There’s a delay in estate administration
Beneficiaries are not kept informed about losses

Practical tips on avoiding disputes

To reduce the risk of contested probate:

Ensure valuations are obtained promptly and professionally
Consider early liquidation of volatile shares
Keep beneficiaries regularly updated
Document all decisions and advice taken
Use independent advisors for high-value portfolios

Looking Ahead: Market Uncertainty Is the New Normal

Whether triggered by political decisions like Trump’s tariffs, inflation shocks, or global events, market instability is here to stay. That means families and executors must be prepared to act swiftly and transparently.

Get Expert Advice

Preparation, communication, and legal guidance are the best tools to avoid long, costly probate battles. If you’re administering an estate that includes shares or business assets or concerned about how to protect your family’s inheritance, we’re here to help. With offices across London, Kent, and Surrey, Wellers has a dedicated team of probate and probate dispute solicitors ready to support you.

Inheritance Disputes and Market Volatility: Market Uncertainty is the New Normal