How is jewellery distributed under a will?

Nasreen Akhter • March 14, 2025

Death of a loved one is a difficult and stressful time. Between grieving, making funeral arrangements and sorting through stacks of paperwork, dividing your loved one's assets can be a long and confusing process. When it comes to inherited jewellery, you may be asking yourself: who gets what? How should it be distributed and how can you value the individual items of jewellery?


Importance of a Will


Firstly, your personal gold and jewellery must be included in a Will, this will ensure that these items are bequeathed to the intended beneficiaries. This can be included by doing the following:


  1. Detailed Description: Clearly describe each item of gold and jewellery in the Will. Include details such as type, size, weight, and any distinguishing features, or even marks. This will likely minimise confusion and disputes among beneficiaries.
  2. Specific Bequests: Specify exactly who should receive each item. You can name individual beneficiaries for specific pieces or groups of items. For example, "I leave my gold necklace to my daughter, [Name]."
  3. Residuary Clause: Include a residuary clause to cover any items not specifically mentioned. This ensures that any gold or jewellery not explicitly listed will still be distributed according to your wishes.
  4. Appraisal and Valuation: Consider having the items appraised to determine their value. This can be useful for equitable distribution among beneficiaries and for estate tax purposes.
  5. Storage and Security: Indicate where the items are stored and how they can be accessed.


The reality is that you cannot distribute jewellery equally amongst several beneficiaries as it would involve cutting each piece of jewellery into several pieces in order for it to be "equal".


Therefore, the more prudent approach is to specify the jewellery e.g. bracelet to son, diamond necklace to daughter, wedding rings to second daughter and everything else to sister.


If you do not have a Will in place, then your gold and jewellery, along with any additional personal possessions will be distributed via the rules of intestacy which could risk your belongings being distributed against your wishes. Here is a link to a government website that explains the rules of intestacy: https://www.gov.uk/inherits-someone-dies-without-will.


However, you may also like to be more flexible, as you acquire further pieces, or your family grows and expands. For instance, you may wish to pass some of your jewellery to your grandchildren. Therefore, making a letter of wishes may offer some flexibility when bequeathing specific pieces of jewellery.


What is a Letter of Wishes?


A letter of wishes is a document that accompanies a Will, providing guidance to the executors or trustees on how the testator would like their estate to be managed and distributed. While it is not legally binding, it serves as an informal way to express personal preferences and intentions that are not covered in the Will. Here are some key aspects of a letter of wishes:


  1. Purpose: It offers additional context and instructions to the executors or trustees, helping them understand the testator's personal wishes regarding the distribution of personal possessions, such as watches or gold and jewellery.
  2. Flexibility: Unlike a Will, a letter of wishes can be updated or changed without the need for formal legal procedures, making it a flexible tool for expressing changing preferences.
  3. Confidentiality: It is usually kept private and is not part of the public probate process, allowing the testator to express personal thoughts and wishes without making them public.


One of the benefits for a Letter of Wishes is that you can update it during your lifetime, without the requirement to pay a professional to update your formal Will. Therefore, your jewellery, and other personal possessions can be bequeathed correctly to your children, grandchildren, and other family members as your circumstances change.


Please access our downloadable free gold and jewellery log: view here

 

Should you Value the jewellery?


It is crucial to accurately value jewellery during probate, in order to ensure the correct tax calculation is provided. Please see the government link below for further information on valuing a deceased’s estate: How to value an estate for Inheritance Tax and report its value: Estimate the estate’s value - GOV.UK.

During the probate process, jewellery is classed as a “chattel”, which refers to a personal possession or movable property. Chattels can encompass a wide range of items, such as furniture, vehicles, jewellery, and other personal belongings.


It is the duty of an executor to ensure proper records are kept of a deceased’s chattels, which will thereafter be distributed according to their Will and Letter of Wishes.

The executor should obtain approval from all the beneficiaries before disposing of any of the jewellery in case it has sentimental value for some of the beneficiaries.

It is also important for the executor to obtain professional valuations of the jewellery to ensure compliance with HMRC guidelines. You may be at risk of HM Revenue & Customs imposing penalties if assets are valued inaccurately.  Here are the general categories of penalties imposed by the HMRC:


  1. Careless Inaccuracy: If the inaccuracy is due to carelessness, the penalty can range from 0% to 30% of the additional tax due. Carelessness implies a lack of reasonable care in preparing the tax return.
  2. Deliberate Inaccuracy: If the inaccuracy is deliberate, the penalty can range from 20% to 70% of the additional tax due. This applies when the taxpayer knowingly submits incorrect information.
  3. Deliberate and Concealed Inaccuracy: If the inaccuracy is both deliberate and concealed, the penalty can range from 30% to 100% of the additional tax due. Concealment involves taking steps to hide the inaccuracy from HMRC.


Please see link to HMRC Inheritance Tax Manual for further information: IHTM36023 - Late accounts: penalties chargeable - HMRC internal manual - GOV.UK

Therefore, it may be prudent for the executor to contact an experienced jeweller and obtain expert appraisal.

 

Obtaining Valuation for a Will


It is recommended that you should obtain expert valuations on your gold when you write your Will. Here are some reasons why this is beneficial:


  1. Accurate Distribution: Valuation ensures that the jewellery is distributed fairly among beneficiaries. Knowing the precise value helps in making equitable decisions, especially if the estate is to be divided equally.
  2. Avoiding Disputes: Clear valuation can prevent disputes among beneficiaries over the worth of specific items, therefore, preserving the family harmony. It provides a transparent basis for distribution decisions.
  3. Clarity in Will: Including the value of jewellery in the Will provides clarity and reduces ambiguity, ensuring that the testator's intentions are clearly understood and executed.
  4. Tax Purposes: An accurate valuation is essential for calculating any potential inheritance tax liabilities. This helps in ensuring compliance with tax regulations and avoiding disputes with tax authorities.
  5. Insurance: Knowing the value of jewellery can assist in obtaining appropriate insurance coverage, protecting the items from loss, theft, or damage.
  6. Updating Values: Jewellery values can change over time due to market fluctuations. Regular valuations ensure that the Will reflects the current value of the items.


If you decide not to value your jewellery when make your will then at the very least, you should ensure that each piece is described accurately and that it is bequeathed to specific named beneficiaries.


Can family disputes arise about jewellery distribution under a will?


Sometimes, who gets what from a parent’s estate can become a source of friction and resentment, especially if a family member feels they had been “promised” a particular item or keepsake.


The chances are that you will have personal possessions that you’d like to be handed on to your family and friends when you die. For example, you may want family jewellery to go to your daughter, a watch to a cousin, or a bracelet to be given to a close friend. If that’s the case, it makes sense to record your wishes so that your executors can ensure they are followed.


Often it is the little things that cause conflict and dispute between family members, we would advise against assuming that things will simply sort themselves out when the time comes. At Ash Hill Solicitors when we draft your bespoke will we insert clauses to prevent dispute from arising in your family.


We encourage you to have open communication with your family before making your will. Although it might be a difficult conversation to have, there are clear merits to having an open discussion with other family members. Deciding as a family what should happen to personal possessions can help prevent future disputes.


Our advice is to have a ‘Letter of Wishes’ drawn up to be read alongside the Will. Arguably it is not appropriate for such (often quite personal) detail surrounding who should get what and why to be included within the Will itself, bearing in mind this is a document of public record once probate has been granted.


A Letter of Wishes provides an explanation for your beneficiaries to read and hopefully prevent conflict arising. When dealing with collections of things such as jewellery or memorabilia, it can make sense to keep a photograph together with a brief description, so that each piece can be clearly identified by your Executor when the time comes.


Cluttering a Will with details surrounding personal possessions and lists of particular items can also cause complications from an Inheritance Tax standpoint and is rarely a good idea. Over the years, the chances are that you’ll dispose of certain belongings and acquire new ones, which would mean you would have to consider updating your Will more often than you might feel necessary.


At Ash Hill Solicitors, we provide expert advice in drafting your Will and Letter of Wishes based on your personal circumstances.


Deathbed Gift


If a gift has been given by a person in anticipation of their impending death, certain conditions need to be satisfied. You can read more about deathbed gifts on our blog post: What is a Death Bed Gift?


Contact us



Call us today so that we can assist you in securing your jewellery: 02085152790 or visit our website for further information - https://www.ashhillsolicitors.co.uk/.

What is a Death Bed Gift?

By Nasreen Akhter • February 25, 2025
A deathbed gift is one made by a person in anticipation of their impending death. The principle of deathbed gifts (in legal terms known as ‘donatio mortis causa’) is long enshrined in law. It is important to be aware that for a deathbed gift to be valid, certain conditions must be satisfied.  Death bed gifts are open to abuse by the dishonest persons present at the time of donors death. They can also be very difficult to determine and are often open to challenge.

What will happen to your digital assets if you pass away suddenly?

By Nasreen Akhter • January 20, 2025
What will happen to digital assets if you pass away suddenly? In today’s digital world, where most of us have multiple digital assets, it is important to put measures in place to protect these assets. A digital asset refers to any asset which you own and may have stored in a digital format. Typically, digital assets are accessed via an online account run by a third-party provider such as Facebook, Google, Apple, or Amazon. There are many examples of digital assets which you may own that are online. These are typically bank accounts, music libraries, email accounts, cryptocurrency, social media, gambling accounts, loyalty schemes, or sentimental photos and videos. Maintaining access to online accounts is essential for either financial or sentimental reasons. Thus, it is very important to plan what will happen to your online accounts when you pass. How can digital assets be protected? The tech industry is fast-paced and constantly changing, with new languages, frameworks, and tools emerging regularly. You may have multiple online accounts on various platforms. For each online account, we recommend that you should review the terms and conditions you agreed to when creating the account. Each account is likely to have specific terms on which assets can be administered on death or if there is no activity on an account for a long period of time the account might be terminated. We recommend that you should choose a digital executor to take over control of certain aspects of your account where the internet service providers (ISP) offer this facility. For example, Facebook allows you to nominate a legacy contact to turn your account into a memorial when you die. Google, on the other hand, allows you to nominate an Inactive Account Manager. This in turn allows the account to be closed or for the submission of requests for data from the account. You should make note of the fact that some ISPs will permanently destroy your digital assets after a period of inactivity or upon notification of your death. What will happen to your digital assets if you pass away without a will or have not mentioned the digital assets in your will? If you currently have a Will in place that does not provide for your digital assets upon death, then these are likely to form part of the residue of your estate and will pass to your residuary beneficiaries. If you don’t have a Will in place, then your digital assets will be distributed via the rules of intestacy which could risk your digital assets ending up in the wrong hands or being lost forever. Here is a link to a government website that explains the rules of intestacy: https://www.gov.uk/inherits-someone-dies-without-will What challenges will your relatives face when dealing with your digital assets? Relatives often face several issues when dealing with a relative's digital assets after their death: Access and Passwords : One of the primary challenges is gaining access to the deceased's digital accounts and assets. Without passwords or access credentials, it can be difficult to manage or close accounts. In order to remedy this administrative issue, it is important to keep a list of digital assets and login information in a secure place. Ideally, this should be alongside the will in a locked draw/safe. Furthermore, this should be updated regularly to avoid further issues. Such information should not be disclosed in the Will document as the Will becomes a public document once a Grant of Probate is obtained. Identification of Assets : Identifying all digital assets can be challenging, especially if the deceased did not maintain a comprehensive list. Digital assets can be spread across various platforms and devices. Ownership : Relatives performing the role of an Executor for the deceased’s estate will need to determine whether the deceased owned the object or if they had the required permission to utilise it during their lifetime. The information regarding the deceased’s ownership will likely be displayed in the terms and conditions of each digital asset. Legal Authority : Relatives may need legal authority, such as a grant of probate, to manage or transfer digital assets. This can be complicated if the deceased did not leave clear instructions or if the digital service providers have strict policies. Service Provider Policies : Different service providers have varying policies regarding the transfer or closure of accounts after death. Some may require specific documentation or legal processes. Privacy Concerns : There may be privacy issues related to accessing the deceased's digital communications or personal data, which can complicate the process. Valuation and Transfer : Determining the value of digital assets, such as cryptocurrencies or digital art, and transferring them to beneficiaries can be complex and may require specialist knowledge. Legal and Tax Implications : There may be legal and tax implications associated with inheriting digital assets, which can vary depending on the type of asset and jurisdiction. How can we help you plan ahead to protect your digital assets? At Ash Hill Solicitors, our experienced solicitors specialise in all areas of estate planning and Wills. We can assist in planning your digital legacy by providing comprehensive legal guidance and support in several key areas: Identifying Digital Assets : We can help you identify all your digital assets, including online accounts, digital currencies, and intellectual property, ensuring nothing is overlooked. Drafting Legal Documents : Our team can draft or update your will to include specific instructions for the management and distribution of your digital assets, ensuring these are legally binding and clear. Appointing a Digital Executor : We can assist in appointing a digital executor, who will be responsible for handling your digital assets according to your wishes. Access and Security : We can advise on secure methods to store access information, such as passwords and encryption keys, ensuring that your digital executor can access your assets when needed. Compliance with Laws : Our experienced solicitors ensure that your digital legacy plan complies with relevant laws and regulations, including data protection and privacy laws. Regular Updates : We are able to help you regularly update your digital legacy plan to reflect changes in your digital assets or personal circumstances. Dispute Resolution : In the event of disputes over digital assets, our team can provide legal representation and advice to resolve issues effectively. By working with Ash Hill Solicitors, you can rest-assured your digital legacy is managed according to your wishes, and that your digital assets are protected and transferred smoothly to your beneficiaries. Please access our downloadable free digital assets log: Click Here Further information The draft Property (Digital Assets etc) Bill proposes that digital assets can be the object of property rights in England and Wales. Please see the link below for further details: https://www.lawsociety.org.uk/topics/private-client/property-digital-assets-etc-bill Contact us Call us today so that we can assist you in securing your digital assets: 02085152790 or visit our website for further information https://www.ashhillsolicitors.co.uk/ .

What is a Lasting Power of Attorney?

By Nasreen Akhter • February 22, 2024
A Lasting Power of Attorney is an important legal document that lets you choose who would make decision on your behalf if you were unable to do so due to a sudden accident, illness, or long-term health issues. There are two different Lasting Powers of Attorney, one covers decisions regarding Health and Welfare and the other Property and Finance. The person for whom the Lasting Power of Attorney is created is called the donor and the people (or persons) nominated to make decision on behalf of the donor are called attorneys. How do I decide who to appoint as my attorney(s)? An attorney can be a relative, friend, spouse or civil partner, your child or even a professional. Ideally, they should be individuals who know you well and most importantly to appoint people who you trust. It is always useful to have more than one attorney as this allows checks to be put in place and provides reassurance to you and other members of the family. You can specify what decisions you are happy for your attorney(s) to make on your behalf. You can decide if your attorney(s) must act jointly on all matters or whether they can also act individually (severally). An LPA ensures that, should you be unable to manage your own affairs, the people you have appointed can manage your financial life on your behalf. This can save a great deal of money and will ensure that as a vulnerable person your affairs will be handled correctly. Risks of not having an LPA If you lose mental capacity without an LPA in place, your family must apply to the Court of Protection to have a deputy appointed to deal with everyday financial matters. This is a slow and expensive process. Contact us today for a free no obligation chat: www.ashhillsolicitors.co.uk Our Power of Attorney solicitors can help and guide you through this process to make sure your forms are correctly and accurately completed.