What is it worth?

Money, as you know, loses value over time. It is called inflation. Even in times of low inflation, any sum of money loses much of its buying power over 10 to 20 years. The buying power of a legacy of £1,000 left in 1980 would only have had a buying power of £380 by the year 2000. Hence legacies of set sums are usually worth much less by the time they reach beneficiaries years later.

The answer is to leave legacies expressed as a percentage.

These are called residuary legacies and maintain their buying power over the years.

Here are some examples of how the worth of money changes over time.

In 1964 an average semi-detached house cost £3,500.
In 1973 the average weekly take-home pay was around £30, a packet of crisps cost 5p, a lipstick cost 45p, a packet of chocolate biscuits cost 12p, you could get an average meal out for £1, and a fortnight in Tenerife cost £93.
In 1975 an Austin Mini car cost £1,298, a four course Christmas dinner out cost around £3 and a sheepskin coat could be found for £52.
In 1984 The Daily Mirror cost 17p.

It usually takes one, two or even three decades before legacies left to charity reach that charity, so please bear inflation in mind when remembering them in your will and leave them a residuary (percentage) legacy. In their hands, even as little as 1% can work wonders, and if you can spare them a little more … just think what you could achieve.

I recommend consulting a solicitor when making a will.

Wise's Whimsical Wills
A 15C Italian courtier decreed in his will that anyone found crying at his funeral would lose their inheritance. On the other hand, the person who laughed the most would get the largest part of his estate. This must have been one of the most cheerful funerals ever.