What does it mean to leave a Legacy in a Will?

Many of us like to include legacies (gifts) in our Wills whether to family, friends, executors and /or to charities.

Legacies can be general (usually an amount of money) or specific (particular assets you own such as jewellery)  Including a legacy in a Will may seem straightforward but there are issues which should be considered.

What is the priority?

Legacies take priority and are paid before the remainder of an estate is distributed.   You may include a gift of £100,000 to your grandson on the basis that you were worth £500,000 when you made your Will and specify that your daughter should receive the remainder of your estate.   However, if your net worth was £150,000 by the time of your death, would you still wish for your grandson to receive £100,000 if your daughter was to receive only £50,000 as a result?

In some cases the value of cash legacies in a Will exceed the total of the estate. This means that the residuary beneficiaries receive nothing. Using the example above, if the estate was only worth £50,000 by the time of death, the grandson would receive £50,000 and the daughter would receive nothing

Careful consideration should be given as to what should happen if the beneficiary of the legacy dies before you. It is always possible to name a substitute beneficiary.

Things to consider

Have you considered what would happen if you don’t own the item which you have gifted in your Will? Would you like to include a substitutional gift or a cash gift instead? Without express wording, this may not happen.  

Clarity is essential

If you would like a particular individual to receive your diamond ring but you own more than one ring containing diamonds, which one are you referring to? Consideration should always be given to such matters to avoid disappointment and/or disputes following your death.

When you instruct a legal expert at Ware & Kay, we would discuss the issues above to the extent to which they could apply to you to ensure you have a well drafted Will. This helps to prevent any unintended consequences in the future which would otherwise cause distress/disappointment to your intended beneficiaries.

If you need further information or assistance, please do not hesitate to contact us.  Call Sian Foster on York 01904 716000, Wetherby 01937 583210 or Malton 01653 692247 or email sian.foster@warekay.co.uk