What counts as a personal chattel when somebody dies, is everything they owned, could touch and move, and could go with them when they moved elsewhere on earth. When they died they obviously could not take them with them. Their family now faces an important question: What happens to their personal belongings now?
What Counts as a Personal Chattel (Dead Or Alive)
A personal chattel is a movable item that somebody owns. Unlike a house or a piece of land, they can pick them up and take them elsewhere. Most people own hundreds of personal chattels without even ever thinking of them that way.
Original Illustration by Avery Associates
Everyday examples of chattels might include furniture, clothing, jewellery, watches, cars, books, paintings, and photographs. Not to mention kitchen equipment, garden tools, musical instruments, electrical appliances, and so on.
What Is Not a Personal Chattel?
Some assets do not count as personal chattels, because we cannot pick them up, and take with us when we move. Common examples include houses and land, bank accounts, shares and investments, business interests, and money owed to us.
These assets also form part of our estate when we die, although the law deals with them differently.
When Is An Item a Possession, But Not a Chattel?
Some items can also create confusion, when asking does that item count as a personal chattel. For example, wardrobes and kitchen dressers used to be movable items, but now they are built-in fixtures. In other words, attached to a fixed asset, in this example a house.
This is why such items are normally considered part of the property, rather than personal chattels. Although freestanding furniture remains a personal chattel, of course.
What Happens If The Deceased Left a Legal Will?
Getting back to our topic, what counts as personal chattels when somebody dies, the next question is who inherits them? The executor identifies which possessions fall within the legal meaning of personal chattels, and transfers ownership to the named beneficiary.
What Happens If There Is No Will?
If someone dies without leaving a valid will, they are said to have died intestate. In the UK, the rules of intestacy determine who inherits the estate, including personal chattels.
Because these rules are fixed by law, they may not reflect what the deceased would have wanted. The workaround is to lodge a valid legal will with your solicitor or special friend you trust, as soon as possible.
Valuing The Different Classes of Personal Chattels
Valuable Collections Worth Real Money
Some personal chattels are worth far more than people realise. Antique furniture, artwork, rare books, coin collections, stamps, vintage toys and classic cars can have significant financial value.
Executors should avoid guessing the value of unusual or collectible items. A professional valuation may be essential, especially if the estate is subject to probate or inheritance tax. Insurance values are not a good guideline, because they are often higher than current market values.
Sentimental Possessions With ‘Soft Value’
Families are often surprised that disagreements arise over inexpensive items. A favourite tea set, fishing rod, or collection of family recipes may carry memories that cannot be replaced.
Executors should remain neutral and follow the instructions in the will wherever possible. If several beneficiaries want the same item, discussing the matter openly and fairly can help prevent lasting family disputes.
New Challenges With Digital Possessions
Online accounts, digital photographs, downloaded music and cryptocurrencies are generally not treated in the same way as traditional personal chattels.
Their ownership depends on the terms of the service provider, and the applicable law. Executors should check what rights the deceased actually owned before trying to transfer these assets.
Planning and Making Things Easier For Your Heirs
A good way to reduce confusion is to prepare ahead. A clear, up-to-date will can specify who should receive important personal possessions. It is also helpful to keep an inventory of valuable items, together with receipts, certificates or photographs where appropriate.
Although many personal chattels are modest in financial worth, they often carry a lifetime of memories. Understanding what counts as a personal chattel can help executors administer an estate correctly, and help families preserve both treasured possessions and family harmony during a difficult time.
Determining The Real Value Of Personal Chattels
What counts as a personal chattel with sentimental value is one thing. But the truth is, many of our heirs are only after the money. Dividing estates in terms of monetary value makes more sense than leaving conflict and disputes behind.
Avery Associates offers a bespoke service to those planning estates, writing wills, and administering them. Speak to us first if you would like to know the real market value of something. Our service is confidential and discrete.
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