Pecuniary Gift / Legacy
A gift of a specific sum of money in a will, such as "£10,000 to my niece". Paid after debts but before the residue is distributed.
A pecuniary gift (or pecuniary legacy) is a gift of a fixed sum of money in a will.
Examples
- "I give £5,000 to my godson John"
- "I give £1,000 to Cancer Research UK"
- "I give £500 to each of my grandchildren"
Important Considerations
No inflation protection: A gift of £10,000 made in 2000 is still £10,000 when you die, despite inflation. Consider percentage gifts instead.
Abatement: If the estate can't pay all pecuniary gifts in full, they're reduced proportionally. Specific gifts take priority.
Tax: Pecuniary gifts are usually paid free of tax (IHT comes from the residue), unless the will says otherwise.
Order of Priority
- Funeral and administration expenses
- Debts
- Specific gifts
- Pecuniary (cash) gifts
- Residuary estate
Common questions
What if there's not enough money for all pecuniary gifts?
They abate (reduce) proportionally. If there's £50,000 to cover £100,000 in pecuniary gifts, each recipient gets 50%.
Do pecuniary gifts come with interest?
If not paid within 12 months of death, interest may be payable. The rate depends on the will or court rules.
Should I leave a fixed sum or percentage?
Percentages adjust to estate size and inflation. £10,000 meant more 20 years ago. Consider "10% of my estate" instead.
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