13 Jul 2018
Many people wish to leave a gift when making a will to give to certain people or organisations such as charities. If you wish to leave a gift in your will, here are some things to consider.
For example a gift could be items of jewellery, clothing and articles of personal use and adornment, a cash gift, gift of a motor vehicle, gift of shareholdings or even a gift of real estate.
Although a ‘specific gift’ may seem to be a good idea, there are a few issues you need to be aware of before you make your will.
Some of the issues you need to be aware of include the following:
- What if you no longer own the specific gift when you pass away?
The reason why is because if you don’t own it when you pass away, then you can’t gift it.
- Who is to receive the gift and what happens to the gift if this person dies before you?
The reason why is the gift may go to someone who you didn’t intend to receive it, such as that persons children or fall to the residue of your estate.
- Whether there is a charge or mortgage on the asset to be gifted?
The reason why is any charge or mortgage on an asset specifically gifted will then become the responsibility of the person who is the recipient of the specific gift.
- Whether there is any income to be received on the asset to be gifted?
The reason why is any income generated on a specific gift will then pass to the person who is the recipient of the specific gift.
For example, a gift of real estate which is charged with a mortgage and council and utility rates will become the responsibility of the person receiving the gift unless there is a specific direction contained in the Will or in any other document for the charges to be paid out of your estate.
- Andrew Aitken