Personal Chattels in a Will: Everything You Need to Know
You may wonder what are Personal Chattels in a Will? Personal chattels are personal possessions such as furniture, the contents of your home and cars. Also referred to as tangible moveable property, personal chattels are items that you own and use personally.
Items used mainly for business purposes are not classed as personal chattels, nor are money and investments. If you have bought jewellery partly as an investment but you also wear it, it will be considered a personal chattel.
For most people, their personal possessions will only form a small part of the value of their estate. However if they are not dealt with properly in a Will, they can cause serious disputes between family members. Individual items may not be worth a great deal. Although, when emotions run high after a death, people can often be upset if they do not receive something they believe they were promised or which has great sentimental value to them.
How to leave personal chattels in your Will
You can use your Will to make gifts of specific personal possessions. Alternatively you can allow family members to each choose something they would like to have to remember you by. However, you should bear in mind that this could give scope for disagreements if more than one person wants the same item. Alternatively, you can refer your executors to a Letter of Wishes. This is a separate document setting out who you would like to receive your chattels. Although a Letter of Wishes is not legally binding, executors will usually follow the guidance it contains.
You can use the letter to list your personal possessions and what you would like to happen to them. You can also update the document when you want. Ensuring that it still reflects your wishes as time goes by.
If you do not want to leave items to people individually, then your personal chattels can be included with the rest of your estate. Your executor will be able to sell them on your death. The proceeds form part of the residue of your estate and are distributed in accordance with the terms of your Will.
Dealing with personal chattels when winding up an estate
If you are dealing with the administration of an estate, you will need to start by valuing the personal chattels. They form part of the estate for Inheritance Tax purposes. It is often recommended that items worth around £500 or more are professionally valued. Thus allowing you to show that you have dealt properly with matters in your role as executor or administrator. The valuation should be for the open market value as at the date of death.
You should ascertain whether the deceased left a Letter of Wishes in respect of any items or if they have been left to named beneficiaries. If so, the items can be distributed as instructed. It is always recommended that an executor or administrator obtains a receipt from the beneficiary.
If personal chattels are not mentioned, then they can be sold and the sale proceeds distributed in accordance with the deceased’s Will. In the case of no Will, they pass in accordance with the Rules of Intestacy.
Contact Us
If you would like to speak to one of our experts call us FREE on 0800 781 6658 or email us at enquiries@estplan.co.uk
Our services help numerous clients and their families to proactively safeguard their wealth and optimise inheritance for cherished beneficiaries. Plan for the future now, ensuring later-life protection and certainty for your loved ones.