You can leave individual items (called 'specific gifts') to certain people by naming them in your Will.

Any property that you do not give as a specific gift and which is not used to pay debts, legacies, tax or the expenses of administering your estate is part of the 'residue' of your estate - see below.

Consider any specific gifts carefully. Are there family heirlooms that would have a special meaning to someone? For example, is there perhaps a particular item you want to leave to a nephew? If you are a mother, do you want to leave your jewellery to your daughter? A specific gift may not have monetary importance necessarily, but may have personal significance.

In the case of specific gifts, always indicate clearly who is to receive each item of property. Give names in full and identify each item of property clearly.

Try to avoid making gifts of property that are transitory in nature or which may have been sold or changed form before your death. Particular difficulties can arise with, for example, gifts of shares or bank accounts.

Examples of simple gifts:

'I give my Cartier watch to my son, Duncan Charles Smith'  or

'I give my CD collection to my son, Alexander Hugh Ross.'

Sometimes a particular item of property is charged with payment of a debt or other liability. The most common example is where a house is subject to a mortgage in favour of the bank. The widest term for such charges is ‘encumbrances’.

You should clearly indicate whether the person who receives the property takes it subject to the encumbrance, or free from the encumbrance, in which case the encumbrance will be paid out of the residue of the estate.

The following wording should be used for the gift of the property you live in at your death (a) subject to the payment of the mortgage and (b) not subject to such payment (so that the mortgage will be met by other assets in your estate):

(a) ‘I give all my share and interest in my property at _____________________ subject to and charged with the payment of all principal sums and interest secured thereon by way of mortgage or otherwise at my death to ______________________ absolutely.’

(b) ‘I give to ____________________ all my share and interest in my property at _____________________ absolutely freed and discharged from all sums secured thereon by way of mortgage or otherwise at my death and I direct that such sums and all interest in respect thereof shall be paid out of my residue estate.'

It is also possible to make a gift of an amount of money in a Will. This is usually called a legacy. Again, you should clearly indicate the amount and the person who is to receive it.

Examples:

I give to my son Alexander Guy Ross the sum of £100.’

I give the sum of £100 to each of my grandchildren who shall be living as at the date of my death.’

‘I give the sum of £1,000 to be divided equally between all my grandchildren who are living at the date of my death.’

‘I give the sum of £1,000 to Macmillan Cancer Relief Fund.’

The 'residue of your estate' is the term used to describe what property of yours is left over after the deduction of specific gifts, debts, legacies, tax and the expenses of administration.

If you decide not to make any specific gifts, but instead give all of your property to one person alone, then this gift becomes the 'residuary gift'( i.e. they will receive the whole of your residuary estate) and this person will receive whatever is left after the necessary deductions (i.e. debts etc.) have been made.

You must make a residuary gift in your Will, otherwise you will die partially intestate. This means that any specific gifts and legacies can be distributed according to your wishes, but the remainder of your property, which makes up the residue, will be distributed under the rules of intestacy. This could result in a property distribution you may not have wanted.

Your residuary estate can be given to more than one person but if you do so, you must state the share of the residue that each person is to receive, whether equal or otherwise.

Law stated as at 1 August 2009