Did you ever wonder what will happen to the loose gear in your estate, after you pass on? One thing’s for sure though, your heirs will scramble for the valuable items, unless you make your intentions clear. We describe how to avoid confusion, and make life simpler for the executor who winds up your estate.
More About Chattels and Loose Gear
Your estate will consist of three types of possessions when you pass on. These will most likely be land and buildings, savings and financial investments, and ‘chattels’ which form the rest. Chattels are what solicitors call loose gear, and can be any of the following:
- Furniture, electronic goods, household goods, clothing.
- Sentimental items like mementos, keepsakes, and pets.
- Jewellery, art and collectibles, collections, and vehicles.
These chattels are literally loose gear, because they are portable, and you can physically touch them and move them around, see our full valuation service of collectible items and fixed property. Few wills and testaments we have seen, mention chattels unless they are valuable items.
Heirs Can Squabble Over Chattels
It’s amazing how possessive close family members may become, when we pass on. It’s almost as if the loose gear in our estates was theirs from the beginning, and we were just custodians! You don’t want the family divided. Your last will and testament is the only practical way to avoid fighting over collectibles like this:
Cannon Found by Avery Associates in a Garden
Unfortunately, most wills largely ignore loose gear chattels, unless they are heirlooms or high-value items. This seems to overlook the fact that value can extend to emotional attachment, and this can be a powerful thing. There’s only one workaround, and that’s to say clearly what should happen to our gear.
A Letter of Wishes Over Loose Gear
English law defines chattels as movable items that we can touch and feel. In other words, largely what goes in the removal van, or down to the charity shop. This definition effectively excludes savings accounts, financial investment, and land and the buildings thereon.
Our inventory of loose gear constantly evolves, as we acquire new possessions, and shed those we no longer need. This is why it is impractical to include the loose gear in your will. Can you imagine having to visit a solicitor every time you change your smart phone?
One workaround is to write up a letter of wishes. Note though, that this is not legally binding, because your will is your final, and over-riding statement of your intent. A letter of wishes merely provides additional guidance to your executor, although they have no binding legal duty to implement it.
Precious Memories From Time Past (Avery Associates)
Here’s how you go about writing a letter of wishes:
- Walk through your home. Identify the movable possessions that you would like to go to particular heirs.
- Note, though, that ‘movable’ means you can reposition the item. This definition excludes the fixtures in your home.
- List the movable possessions on a piece of paper, including your intentions of what should happen to them.
- Keep the list in a secure location. Make sure your executor knows about it, and where to find it.
You can update this list as many times as you want, provided you sign it and label it ‘letter of intentions’.
Is There Another Way to Do This?
If writing a letter of wishes in impractical, you could short-circuit the process. Add a clause in your will instructing your executor to sell all the loose gear in your estate, and how to distribute the proceeds. However, the downside is you ignore attachments over particular items.
Chattels Can Mean Almost Any Thing (Avery Associates)
Well yes, there is a way to blend the two approaches we mentioned. You could add a clause allowing your heirs to choose one, or a few mementos each, but within a limited time frame. Instruct your executor to sell the rest of your chattels when the deadline expires.
Could I Give Loose Gear to My Heirs?
Of course you can, provided the items are paid for, and they are yours to give. However, there could be inheritance tax complications if you don’t watch your step. The UK has a law that prevents people dodging the tax, by stripping their estates while they are alive:
- If you live on for seven years after gifting the recipient, then there are no tax complications.
- However, if you don’t live that long, then your estate has to pay the tax on a sliding scale.
- Moreover, if the gift is worth less than £6,000, then it is inheritance tax-exempt.
How to Value Your Estate Correctly
The UK tax office is all too well aware of people under-valuing their estates, in the hope of avoiding inheritance tax. You don’t want to be caught in a situation like that, because you did not know your true worth.
Avery Associates offers 100% guaranteed Valuation reports of properties and chattels for the purposes of Probate . When you have all the facts you can divide your estate equitably, so our reports, hopefully will stop your heirs squabbling when you are gone!
More Information
Chattels and Capital Gains – An Update
How UK Inheritance Tax Works on Property
Jeff is reliable, extremely knowledgeable and personable. I know when instructing Jeff to assist me with probate valuations for my clients. And when I’m acting as an executor to an estate, he will not let me down (Ella Millett)
