Many people are surprised to learn that a Will does not control everything they own. So, what can you include in your Will, and what passes outside it? This guide explains which assets your Will covers under the law of England and Wales, which follow their own rules, and what you can do to make sure your plans fit together. Scotland and Northern Ireland have their own rules, so this guide does not cover them.
What can you include in your Will?
Generally, your Will covers assets you own in your sole name. These typically include:
- personal belongings, such as jewellery, furniture and vehicles
- property and land owned in your sole name
- your share of a property you own as tenants in common
- bank and savings accounts in your sole name
- investments and shares held in your own name
- business interests, subject to any partnership agreement or company rules
For example, you might leave your car to a nephew, a ring to your daughter, and the rest of your estate equally between your children. Your Will is the place to set this out.
Assets that pass outside your Will
However, several types of asset pass under their own rules, whatever your Will says.
Jointly owned property
How you own property with someone else makes a big difference. There are two ways to own it jointly:
- Joint tenants. You both own the whole property together. When one of you dies, the property passes automatically to the survivor under the right of survivorship. So your Will has no effect on it.
- Tenants in common. Each of you owns a separate share. As a result, you can leave your share to whoever you choose in your Will.
Joint bank accounts usually work like a joint tenancy, so they also pass to the surviving account holder.
If you own your home as joint tenants and want to leave your share to someone else, you can change to tenants in common. This is called severing the joint tenancy. A.D.E. Wills can explain whether severance suits you and, if you go ahead, carry it out for you. We prepare the Notice of Severance and Form SEV and send the signed documents to HM Land Registry. We sever into equal shares only, for a fixed fee of £195. You can read more on our Protecting Your Home page.
Pensions
Many pension schemes pay death benefits at the discretion of the scheme’s trustees or administrators. So these benefits usually pass outside your Will. Instead, you can complete an expression of wish (or nomination) form telling the scheme who you would like to benefit. It is worth keeping this form up to date, especially after marriage, divorce or a death in the family.
Importantly, the Inheritance Tax rules for pensions are changing. From 6 April 2027, most unused pension funds and death benefits will count as part of your estate for Inheritance Tax, even though they still pass outside your Will. This may affect how much tax is due on your estate as a whole. We can explain the general rules, but for advice on your pension, we can refer you to an appropriate professional.
Life insurance written in trust
If your life insurance policy is written in trust, the payout goes to the trustees for the beneficiaries you named. It does not form part of your estate and is not controlled by your Will. Policies not written in trust usually pay into your estate and pass under your Will. We do not give financial or insurance advice, but we can refer you to an appropriate professional.
Assets already held in a trust
If you have already put assets into a trust during your lifetime, the trust’s own terms decide who benefits. Your Will cannot change this.
Statutory nominations
Some older savings, such as certain friendly society and industrial and provident society accounts, allow a statutory nomination of up to £5,000. Such a nomination takes priority over your Will. These are uncommon today, but it is worth checking if you hold older accounts.
Property abroad
If you own property outside England and Wales, local law may decide who inherits it, whatever your Will says. We advise on assets in England and Wales, and we recommend you speak with a lawyer in the relevant country. In some cases, a separate Will for that country may help.
Special points to consider
Deathbed gifts
A deathbed gift, known as donatio mortis causa, is a gift made in contemplation of impending death that only takes effect if the person dies. Courts apply strict conditions to these gifts, so they are not a reliable substitute for a Will.
Digital assets
Digital assets include online accounts, photos, cryptocurrency and digital purchases. Some can be left in your Will, while others are governed by the provider’s terms. A list of your accounts, kept somewhere safe but not written into your Will, helps your executors find them. Never put passwords in your Will, as it may become a public document after probate.
Making sure your plans fit together
Because so much can pass outside a Will, it helps to look at the whole picture. For example, check how you own your home, update your pension nominations, and review any life policies. Then make or update your Will so that it works alongside them.
GOV.UK has more on making a Will and on Inheritance Tax.
Talk to us about what to include in your Will
If you are unsure what your Will can include, Edward is happy to talk it through. Call 01865 507174 or email info@adewills.co.uk for a free, no-obligation initial chat, or visit our Wills page.
