In our previous blog, we discussed the importance of valuing personal chattels of the deceased. According to section 55(1)(x) of the Administration of Estates Act 1925, personal chattels means ‘tangible movable property, other than any such property which consists of money or securities for money, or was used at the death of the intestate solely or mainly for business purposes, or was held at the death of the intestate solely as an investment’. Examples are:-
- Collectibles;
- Clothing;
- Jewellery and watches; and
- Musical instruments.
The following items are not personal chattels:-
- Money and financial instruments;
- Business-use items; and
- Items held as investments, such as a wine collection.
What happens if the will does not say who should receive the personal chattels and the beneficiaries disagree about certain items?
There is no set answer to this question. It is up to the executors and beneficiaries to decide between themselves. Whilst the executors may have full discretion to distribute the personal chattels, particularly if the will gives them the power, the solutions can be:-
- Each beneficiary can take turns to select an item until all of the personal chattels are fully divided;
- Each beneficiary lists out a certain number of items that he/she wants. If everyone has a different item at the top of his/her list then he/she can just take it. If more than one beneficiary has listed the same item on the top of his/her list, then they can negotiate to see who gets what; or
- Each beneficiary can be allocated a set amount of ‘pretend’ money or allowance, which reflects his/her proportion of entitlement to the residuary estate. He/she can then use his/her pretend money/allowance to purchase the items up to the value of his/her entitlement.
If executors and beneficiaries are still not able to agree who gets what, then the only option may be to sell all of the items that are in dispute so that the proceeds can be divided between them in accordance with the will.
A car is a personal chattel. The executors do not have to wait until a Grant of Probate/Letters of Administration to be issued before selling it or transferring it to another person. If there is finance on it, the car may still belong to the finance company. Therefore, depending on the agreement, the car may be taken off the estate and sold at auction to cover the outstanding loan. Any shortfall may need to be covered by the estate.
How can we help?
Ronny Tang is an Associate in our expert Dispute Resolution team, specialising in defamation claims, contentious probate and inheritance claims, Trusts of Land and Appointment of Trustees Act 1996 claims, Equality Act 2010 claims and Protection From Harassment 1997 claims.
If you need any advice concerning the subject discussed in this article, please do not hesitate to contact Ronny or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.
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