What Are Personal Chattels?

The Inheritance and Trustees’ Powers Act 2014 (which amended s46(1)(i) of the Administration of Estates Act 1925) sets out the definition for a personal chattel and refers to ‘tangible movable property’ but with three defined exceptions:

  • Money and securities for money
  • Property used solely or mainly for business purposes
  • Property held solely as an investment (property which had no personal use)

When a loved one dies, usually a great deal of care is taken when emptying their house to ensure that personal chattels (belongings) of sentimental value are removed, items of historic family importance are secured and that appropriate items are given to charity.

However, care should be taken to check the deceased’s Will in case provision has been made for any personal chattels.

If personal chattels are gifted in a Will then the gift will usually take effect and those items will pass to the person(s) named. However, if there is a specific gift of the personal chattels then they will simply form part of the residuary estate and pass to the residuary beneficiaries.

If there is no will then the personal chattels will pass under the laws of intestacy which apply to that particular individual.

Can The Personal Representatives Sell Them?

If the personal chattels are not specifically gifted to someone in the Will, then the executor can sell the personal chattels for the best price possible, aiming for their market value at the very least. The sale proceeds must be used to pay any funeral expenses, tax, liabilities and other administrative expenses before being distributed in accordance with the Will.

How Do Personal Representatives Sell Them?

How you sell the personal chattels depends on the amount of time and effort you can commit to managing the sale. Fortunately, there are several options when it comes to selling the assets, including: auction, private sale, internet auction or traditional advertising methods, such as newspapers, bulletin boards or word of mouth.

Another way to dispose of these items is work with an auction house/house clearance company who can do everything from managing the details of the initial evaluation of your items to writing you a cheque when the sale has been completed. It is important for the personal representative to keep accurate records of the sales and donations, as they may have to report to the court if challenged about how they have handled the assets.

What Can Go Wrong?

Because people might not realise that the personal chattels need to be included and distributed as part of the estate, well-meaning family members or personal representatives might clear a property and dispose of assets that should have gone to a particular individual, or which should have been properly valued and included as a part of the estate’s overall value.

It is possible that a gift can be made in a Will for a specific item to pass to an individual but if that item has been disposed of during the deceased’s lifetime or if it cannot be found after death, then the gift might fail which can be upsetting.

It is quite common for family members to disagree about who gets what and, if the Will does not specify which items are to pass where, it can result in costly and time consuming legal disputes.

How Can You Avoid These Headaches?

It is always a good idea to discuss your wishes for certain items during your lifetime. You may then want to confirm these wishes in your Will or in a letter of wishes to accompany your Will.

Some people choose to give the items away in their lifetimes (though you need to be careful here if the items have a significant value) or they might label specific items to be distributed post death.

It is important that before any items are disposed of following a death, to review the Will and check to see if any specific provision has been made.

How Can Timms Help?

If there are disagreements, then it’s a good idea to seek legal advice at an early stage. For further information, please contact me at c.day@timms-law.com or on 01283 214 231.