Understanding Last Will & Testament sections

bam999

Hi, while I understand most of my Mother-in-Law's will there are some aspects that I cannot get my head around. I would really appreciate if someone could comment on the following sections please as to their meaning in easier language? Much appreciated TIA.

5. I GIVE all my real and personal property whatsoever and wheresoever (including any property over which I may have a general power of appointment or disposition by Will) to my Trustees UPON TRUST to sell call in and convert the same into money with power to postpone such sale calling in and conversion for so long as they shall in their absolute discretion think fit without being liable for loss.

6. MY TRUSTEES shall out of the monies to arise from the sale calling in and conversion of or forming part of my estate pay my debts funeral and testamentary expenses and all Inheritance Tax payable in respect of my estate and shall invest the residue of such monies in any investments of a nature hereby authorised with power from time to time to vary investments for others of an authorised nature and shall stand possessed of such investments and of all parts of my estate for the time being remaining unsold and any ready money (hereinafter called "my residuary estate") upon the trusts hereinafter declared concerning the same.

7. MY TRUSTEES shall hold my residuary estate as to both capital and income UPON TRUST for such of my said children NAME 1 and Name 2 as shall be living at my death and if more than one in equal shares PROVIDED THAT if any child of mine shall die in my lifetime leaving a child or children who attain the age of eighteen years such child or children shall take by substitution and if more than one in equal shares per stirpes the share of my residuary estate which such deceased child of mine would have taken if he or she had survived me but so that no child or children shall take whose parent is alive and so capable of taking.

Thank you.

pjs493

bam999 said:

Hi, while I understand most of my Mother-in-Law's will there are some aspects that I cannot get my head around. I would really appreciate if someone could comment on the following sections please as to their meaning in easier language? Much appreciated TIA.

5. I GIVE all my real and personal property whatsoever and wheresoever (including any property over which I may have a general power of appointment or disposition by Will) to my Trustees UPON TRUST to sell call in and convert the same into money with power to postpone such sale calling in and conversion for so long as they shall in their absolute discretion think fit without being liable for loss.

6. MY TRUSTEES shall out of the monies to arise from the sale calling in and conversion of or forming part of my estate pay my debts funeral and testamentary expenses and all Inheritance Tax payable in respect of my estate and shall invest the residue of such monies in any investments of a nature hereby authorised with power from time to time to vary investments for others of an authorised nature and shall stand possessed of such investments and of all parts of my estate for the time being remaining unsold and any ready money (hereinafter called "my residuary estate") upon the trusts hereinafter declared concerning the same.

7. MY TRUSTEES shall hold my residuary estate as to both capital and income UPON TRUST for such of my said children NAME 1 and Name 2 as shall be living at my death and if more than one in equal shares PROVIDED THAT if any child of mine shall die in my lifetime leaving a child or children who attain the age of eighteen years such child or children shall take by substitution and if more than one in equal shares per stirpes the share of my residuary estate which such deceased child of mine would have taken if he or she had survived me but so that no child or children shall take whose parent is alive and so capable of taking.

Thank you.

Firstly, this is all typical legal language even if it seems confusing to a layman or woman. My husband died suddenly and unexpectedly last year and I'm in the process of rewriting my Will. My solicitor has put in these clauses almost word of word. My children are both still very young.

May I ask if your mother-in-law wrote her Will while your spouse was still a child? Some of what is written suggests to me that it was written when her children were still minors which is why a trust is referred to.

Para 5 basically states that the trustees named in the Will have the power to gather all property belonging to your mother-in-law and liquidate it into cash assets (this could mean selling shares or property). It also gives them the power to delay a sale if they think that waiting a period of time might fetch a better price (for example if holding on to a property and selling at a later date might get a better price - think about how the market dropped during COVID for example). The final sentence means that they have to make the decision to hold on to property to get a better price with the understanding that they are not risking making a bigger loss than if they sold then and there. For example if holding on to a house for a long length of time might allow it to fall into a state of disrepair and therefore lower it's value.

Para 6 means that debts, funeral expenses, and inheritance tax bills are to be paid first (which is standard) before any beneficiaries can be paid. It also allows the trustees to invest the money while it is held in trust in ways that might make the money held in trust increase in value or be a sensible way of handling the money for those it is being held in trust for. For example when I rewrote my Will, my solicitor gave the example of my trustees deciding that it would be sensible to buy a car for one of my children when they turn 17. The cost of the car can come out of the trust. My trustees can also use the money to pay for other sensible things like school fees, etc.

Para 7 simply states that the money and assets (the residuary estate once debts, funeral expenses, etc have been paid) are to be held in trust for your mother-in-laws two named children. If they are living at the time of her death, the residuary estate is split between them. If, for example Child 1 dies before her but they have children, the share that Child 1 would stand to inherit would be divided between their descendants if they have any. If Child 1 dies before her but has no descendents, their share would go to Child 2. The final sentence just means that grandchildren can't inherit if their parent is still living.

I hope this is helpful.

bam999

Dear pjs493

Yes very helpful so thank you.

Wrt to your query that’s a yes but wrt to another other child (much younger sister) back in the 90s (when the will was written) who was living with my mother-in-law.

I would appreciate it if you could comment on other sections so will put them here shortly.

Thanks again!

pjs493

bam999 said:

Dear pjs493

Yes very helpful so thank you.

Wrt to your query that’s a yes but wrt to another other child (much younger sister) back in the 90s (when the will was written) who was living with my mother-in-law.

I would appreciate it if you could comment on other sections so will put them here shortly.

Thanks again!

Now that all children are adults, a trust is no longer needed so from what you've posted it would appear that everything basically just gets divided equally between your spouse and their sister. If either child dies before your mother-in-law, their share would be divided between their own children, or if they have no children, would go to the surviving sibling.