The types of gift that can be made in a will |
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Jane Cassell describes what gifts can be made in a will.
There are basically two types of gift that can be made in a Will. The first is a specific gift and the types of gifts that can be included here are as follows:
Money
A gift of money can be made in a Will. It needs to be specified clearly, both the amount and the person or organisation receiving it.
Many grandparents provide a sum of money to grandchildren, even though they know their children will provide for the grandchildren.
Some people wish to provide for a sum of money to go to their favourite charity on their death, so put it in their Will. Charities never benefit from peoples estates unless they are explicitly included in the Will. The Intestacy Rules provide nothing for charity, unless you consider the Queen to be a charity!
Jewellery
Jewellery can be included in your Will. The actual item needs to be clear (“my ring” may be subject to doubt, but “my ring with three emerald stones and engraving inside reading …” is identifiable). The person to whom you are giving it, also needs to be clear.
Special items
For some, it’s important to pass the grandfather clock to a particular individual, for some it’s the CD collection. It’s even possible to gift “the red dress” to a best girlfriend!
Pets
Pets are not assets, and cannot be “given” in a Will. However, some people choose to publicly express in their Will, their wishes in relation to who should care for their pet when they die. Some people even provide for a gift to charity in the hope that their pet will be well cared for by that charity, particularly if they don’t have friends or family who would be able to take on this role.
The second type of gift to be made in a Will, is called the residue.
The residue means all that is left after the specific gifts above, and the various expenses of the estate are paid (funeral, executorship expenses and inheritance tax for example).
This can all be given to one person (your spouse), or a category of person (your children), with various back up plans built in (if any child dies before you, their share can pass to their own children). Alternatively, the residue can be split up any way you wish. For example, 20% to a charity, 40% to one individual and 40% to some named individuals equally. It goes without saying that it all has to add up to 100%.
It’s worth mentioning that without complicating it unduly, your Will is a blank canvas, for you to reflect and make clear, what is important to you.
A good adviser will give you the opportunity to capture all that is important to you in your Will, making it legally binding. They will also ensure that you’re aware of the Letter of Wishes, which is not legally binding, but enables you to easily update personal items such as jewellery, from time to time. You never know, your spouse may be about to buy you your most expensive piece of jewellery yet…
May 2012
Disclaimer:
There are basically two types of gift that can be made in a Will. The first is a specific gift and the types of gifts that can be included here are as follows:
Money
A gift of money can be made in a Will. It needs to be specified clearly, both the amount and the person or organisation receiving it.
Many grandparents provide a sum of money to grandchildren, even though they know their children will provide for the grandchildren.
Some people wish to provide for a sum of money to go to their favourite charity on their death, so put it in their Will. Charities never benefit from peoples estates unless they are explicitly included in the Will. The Intestacy Rules provide nothing for charity, unless you consider the Queen to be a charity!
Jewellery
Jewellery can be included in your Will. The actual item needs to be clear (“my ring” may be subject to doubt, but “my ring with three emerald stones and engraving inside reading …” is identifiable). The person to whom you are giving it, also needs to be clear.
Special items
For some, it’s important to pass the grandfather clock to a particular individual, for some it’s the CD collection. It’s even possible to gift “the red dress” to a best girlfriend!
Pets
Pets are not assets, and cannot be “given” in a Will. However, some people choose to publicly express in their Will, their wishes in relation to who should care for their pet when they die. Some people even provide for a gift to charity in the hope that their pet will be well cared for by that charity, particularly if they don’t have friends or family who would be able to take on this role.
The second type of gift to be made in a Will, is called the residue.
The residue means all that is left after the specific gifts above, and the various expenses of the estate are paid (funeral, executorship expenses and inheritance tax for example).
This can all be given to one person (your spouse), or a category of person (your children), with various back up plans built in (if any child dies before you, their share can pass to their own children). Alternatively, the residue can be split up any way you wish. For example, 20% to a charity, 40% to one individual and 40% to some named individuals equally. It goes without saying that it all has to add up to 100%.
It’s worth mentioning that without complicating it unduly, your Will is a blank canvas, for you to reflect and make clear, what is important to you.
A good adviser will give you the opportunity to capture all that is important to you in your Will, making it legally binding. They will also ensure that you’re aware of the Letter of Wishes, which is not legally binding, but enables you to easily update personal items such as jewellery, from time to time. You never know, your spouse may be about to buy you your most expensive piece of jewellery yet…
May 2012
Disclaimer: