Types of legacy
There are many forms of legacy to fit a variety of will-maker's needs. Your solicitor can advise which ones suit you best. Here are two of the main types.
Pecuniary – Set sum of money
- Advantages
They are simple – They are a known amount. - Disadvantages
Due to inflation, they lose value over time – They need regular updating to maintain value. For example, the buying power of £1000 in 1980 shrank to around £380 by the year 2000. Similarly, a set sum legacy will shrink in buying power and whoever you give it to will be able to do less and less with it.
Residuary – Percentage of what is left after other legacies have been given
- Advantages
They automatically adjust their amount over time, thus keeping pace with inflation and maintaining their value. They wax and wane in proportion to the worth of your estate. As little as one percent of your estate can provide valuable support for your favourite charity, while leaving most for your family and friends. - Disadvantages
It is not possible to work out, before you die, how much they will amount to when given. However, as said above, their buying power, or value, remains the same.
I recommend consulting a solicitor when making a will.
Wise's Whimsical Wills
A Somerset farmer left instructions for his pedigree flock of Dorset Horn
sheep to attend his funeral. "We were a bit shocked at first," said
his daughter, "but his friends agreed that that was Peter all over,
so we took ten ewes to represent the flock". (Daily
Telegraph 21/11/98)