Fifteen Years, £282,000 in Tax, and One Costly Lesson: Why Mediation Matters in Inheritance Disputes
A recent High Court judgment has highlighted the devastating financial consequences that can arise from protracted family disputes over inheritance – and the pressing need to consider mediation as a cost-effective, dignified alternative to litigation.
In a case reported in The Telegraph (June 2025), Sharas Changizi found himself embroiled in a bitter 15-year legal battle with his mother and siblings following the death of his father in 2010. At the heart of the dispute was how inheritance tax should be apportioned between beneficiaries – a question that might have been resolved much more quickly, and with far less acrimony, had the parties agreed to sit down with a neutral mediator early in the process.
Following his father’s death, Mr Changizi’s siblings executed a deed of variation in 2012, transferring their shares of the estate to their mother. As a spouse, Mrs Changizi qualified as an exempt beneficiary for inheritance tax purposes – meaning no tax was payable on her share.
Mr Changizi, however, declined to transfer his share and insisted that inheritance tax should be shared across the entire estate. The matter ended up in the High Court, where the judge ruled against him. Not only was he found liable for £282,000 in inheritance tax and interest, but he also faced £116,000 in legal costs from previous litigation – including a failed attempt to challenge the will. The combined liabilities wiped out his £300,000 inheritance and left him owing more than £100,000 to his family.
This outcome is a stark reminder of the risks of pursuing courtroom confrontation in emotionally charged family disputes. While Mr Changizi’s arguments raised technical questions about tax law, the prolonged litigation served only to deepen family rifts and consume much of the estate in legal fees and tax penalties.
Had the parties considered mediation, the result could have been very different.
Why Mediation Makes Sense
Mediation provides a private, flexible forum for families to resolve disputes with the help of a trained neutral third party. It allows parties to express their views, understand each other’s concerns, and explore outcomes that a court may not be able to offer – all without the time, cost, and stress of full-blown litigation.
In inheritance disputes, mediation can be particularly effective in:
- Clarifying misunderstandings about the legal and tax consequences of wills and gifts
- Preserving family relationships that might otherwise be irreparably damaged
- Agreeing on practical solutions without exhausting the estate through legal costs
In Mr Changizi’s case, mediation might have allowed for a frank discussion of the family’s wishes, a better understanding of inheritance tax rules, and a negotiated agreement that avoided the eventual tax and legal costs he incurred.
Conclusion
The Changizi case is a cautionary tale for anyone involved in estate disputes. It shows how quickly legal costs can escalate, how inheritance can be lost in the courtroom, and how long-running litigation can compound grief with financial ruin.
Before stepping into court, families should ask themselves: is it worth risking the entire estate? Mediation offers a better way – one that honours not just the law, but the memory of loved ones and the preservation of peace.