What Gifts Can I Leave in a Will?

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One of the essential aspects of creating a will is determining the gifts or legacies you want to leave behind. Let’s delve into the various types of gifts you can leave in a will.

Specific Gifts

These are particular items or assets that you wish to give to a specific person. It could be anything from jewellery, artwork, to a specific collection you own.

For example: I bequeath my diamond necklace to my daughter, Jane.

Pecuniary Gifts

This is a specified sum of money you wish to leave to someone or an organisation. It’s a fixed amount that doesn’t change regardless of the value of your estate.

For example: I bequeath the sum of £5,000 to my nephew, Tom.

Residuary Gifts

After all debts, taxes, and other legacies have been paid off, whatever remains is called the residue of your estate. You can choose to leave this entire residue or a percentage of it to one or more beneficiaries.

For example: I bequeath 50% of the residue of my estate to my son, Alex, and the other 50% to my charity of choice.

Contingent Gifts

These gifts are dependent on a certain event or condition being met. For instance, you might leave something to a beneficiary only if they survive you or reach a certain age.

For example: I bequeath £10,000 to my granddaughter, Lucy, provided she reaches the age of 21.

Gifts to Charities

The UK has a rich tradition of philanthropy, and many people choose to leave a gift to a charitable organisation in their will. Not only does this support causes close to your heart, but it can also offer tax advantages. If you leave at least 10% of your net estate to charity, it reduces the Inheritance Tax rate on the rest of your estate from 40% to 36%.

Reversionary Gifts

These are a bit more complicated. With a reversionary gift, you leave an asset (like a house) to a beneficiary to use during their lifetime. After their death, the asset then goes to a second beneficiary.

For example: I leave my house to my wife, Sarah, to use during her lifetime, and after her death, it will pass to our son, Max.

Important Considerations

  • Clarity: Ensure your wishes are clear and unambiguous to avoid disputes.
  • Updating: Circumstances change. Regularly review and update your will to reflect any changes in your situation or wishes.
  • Legal advice: It’s always wise to seek legal advice, especially in more complex estates, to ensure that your will is valid and meets all legal requirements.
  • Tax implications: The UK has specific rules about Inheritance Tax. Some gifts can help reduce the overall tax liability of your estate.

Whether you choose to leave a cherished item, a sum of money, a share of your estate, or a charitable donation, leaving gifts in your will ensures that your legacy lives on in a way that reflects your values and wishes.

Plan wisely, and seek professional advice if needed, to ensure your loved ones and cherished causes are provided for in the best possible way.

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