Chattel and personal property query

X2567843

Please can someone clarify I - named here am entitled to all personal belongings such as a car in this will if I’m named as being gifted absolutely all personal chattel? Or would the trustees also be entitled to a share it? Thank you.

WILL

4. GIVE to my said wife absolutely all my personal chattels as defined in Paragraph (x) of Sub-Section (1) of Section 55 of the Administration of Estates Act 1925 not otherwise specifically disposed of by this my Will or any Codicil hereto -

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 just debts funeral and testamentary expenses and any legacies and tax payable in respect of my estate and shall invest the reside of such monies in any investments 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.

SUBJECT to Clause 4. here of DIRECT that my Trustees may dispose of any items of personal chattels of any value comprised in my estate as they shall in their absolute discretion think fit.

simongregson

No they are holding them on trust for the benefit of the beneficiaries of the will. However they can decide how to dispose of them, for example sell them to realise cash or dispose of if of no value.

that is how I read it, but I am not a solicitor!

X2567843

https://forums.moneysavingexpert.com/discussion/comment/81880633#Comment_81880633

so where I’ve been left “absolutely all chattel” what does that include? It’s seems contradictory the will.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81880638#Comment_81880638

Have to agree, clauses 4 and 5 are entirely contradictory, and indicative ( in my opinion ) of poor drafting by the lawyer concerned.

Chattels as outlined by Section 55(1) (x) are quite precisely defined - see below

https://uk.practicallaw.thomsonreuters.com/Glossary/UKPracticalLaw/I3f4a1c05e8db11e398db8b09b4f043e0?transitionType=Default&contextData=(sc.Default)&firstPage=true#:~:text=Section%2055(1)(x)%20of%20the%20Administration%20of%20Estates,separately%20assigned%20or%20charged%20*%20Trade%20machinery

In the context of your question chattels as defined above would certainly include cars, household goods and furnishings , jewellry etc, all of which go to spouse by clause 4 of the will.

The following clause 5, purports to grant powers to trustees over 'personal property' which in my view are the self same 'chattels' disposed of by clause 4.

This is further compounded by the final paragraph after clause 6 which whilst acknowledging a gift of chattels to the wife in clause 4, purports to give the trustees blanket discretionary powers to dispose of said chattels as they deem fit. As I say, nonsensical drafting.

Questions:

When was will dated?

Are you the wife here?

Are the residuary beneficiaries connected and related to you and how are the trustees of the will interpreting clauses 4 and 5?

X2567843

https://forums.moneysavingexpert.com/discussion/comment/81880724#Comment_81880724

The will is dated 2008.
I am the wife.
The other beneficiaries haven’t said anything.
I’ve read it that clause 4 supersedes 5 and the other beneficiaries would only have been able to sell the personal belongings should I have predeceased my husband.
I’ve interpreted real and personal property as money and investments only.
It seems open to interpretation. Really bad drafting from a solicitor it seems.
And where it says subject to clause 4… they could only sell the personal items should I have died first?

tacpot12

Paragraph (x) of Sub-Section (1) of Section 55 of the Administration of Estates Act 1925 defines "Personal chattels” as meaning "tangible movable property, other than any such property which-

• was used at the death of the intestate solely or mainly for business purposes, or
• consists of money or securities for money, or
• was held at the death of the intestate solely as an investment:

This, and he fact that Personal Chattels are given to the testator's wife in a paragraph before the Trustees are charged with calling in all real and personal property, and the use of the wording "SUBJECT to Clause 4" means that the Trustees cannot sell any Personal Chattels if the testator's wife is alive at the time the testator dies as these Chattels pass directly to the wife. (The key phrase is "SUBJECT to Clause 4". If clause 4 is enacted because the testators wife is still alive, then the Exectutors have no power to "dispose of any items of personal chattels…"

A personal car is an example of "tangible movable property" according to this source, which I would regard as fairly authoritative:

Chattel | Glossary | Practical Law

I would get on registering with the DVLA and use the Will to show that you now own it to the DVLA.

As has been said, the Trustees are reqired to call in (sell) the real property (land) and personal property (that does not meet the definition of Personal Chattels, such as a vehicle that was used mainly for business proposes) only so that they can pay out the residary of the estate to the beneficiaries, they can never acquire an interest in themselves UNLESS they are also a beneficiary.

X2567843

https://forums.moneysavingexpert.com/discussion/comment/81880739#Comment_81880739

this is absolutely fantastic information thank you. I’ve read it over and over and I’ve read it exactly as you have. So I’m entitled to all personal chattel and the trustees are only entitled to money and investments (no house involved). I’ve already sent the V5C off to register it in my name. Thank you again. You’ve been most helpful.

poseidon1

Even on that ( generous ) interpretation of these isolated clauses of the will, it still makes no sense.

If clause 5 is supposed to only take effect if wife predeceases the testator, it would have expressly stated as such. It is not something to be inferred. Similarly in the case of the rider to clause 6.

However only part of the will contents has been shared in this post, and it maybe preceding clause 3 or other clauses covered the circumstance of wife predeceasing the testator, resulting in the reading of the subsequent clauses being taken out of context. OP is this case, are the preceding clauses important in understanding the subsequent clauses correctly?

Incidentally with regard to clause 5 'real property' means realty, land , bricks and mortar ie fixed immovable assets. It is not a term ever used in wills to define mere 'investments'- see below

https://www.legalchoices.org.uk/dictionary/real-property#:~:text=noun,bequest%20included%20substantial%20real%20property.

Hopefully the clauses preceding clause 4 makes it clear you inherit the family home.

Incidentally the reason I ask for date of the will was to ascertain why Section 55 AEA 1925 was even inserted in the first place. It was an archaic device used for a very long time in defining the nature of personal chattels but replaced and simplified in 2014 after the enactment of the Inheritance and Trustees powers Act 2014. However, I note that with a will prepared in 2008, this anachronistic definition would have still been in common usage.

tacpot12

I don't think my interpretation is generous. Most of the Wills I have seen make specific bequests, then deal with the residiary. This Will is following the same approach; the specific gift of the Personal Chattels if given first, and then the Trustees are charged with converting everything else to money and distributing according to the testator's wishes for the residiary. I've not seen a Will where the will writer has felt it necessary to say that if a previous clause does not apply then a subsequent clause does apply. If it is in the Will, it applies, UNLESS it says it does not.

The Personal Chattels are all the items that any spouse would be used to having access to; the washing machine in the kitchen, the wardrobe in the bedroom, and the car on the drive way (unless it was a work vehicle). Clearly, in lay and legal terms, 'Personal Chattals' includes the personal car of the testator.