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What is a pecuniary legacy and why should you include it in your Will?

When it comes to writing a Will, many people focus on dividing their assets among loved ones without fully understanding the different ways to structure their wishes.

One key element that often comes into play is the pecuniary legacy – a specific monetary gift left to a beneficiary.

What is a pecuniary legacy?

A pecuniary legacy is a set amount of money left to a person, organisation, or charity as part of your Will.

Unlike other types of legacies, such as specific legacies (a gift of a particular item) or residuary legacies (a share of what’s left of your estate after other gifts and expenses), pecuniary legacies offer clarity and certainty.

For example, you might include a clause in your Will that states, “I leave £10,000 to my niece, Sarah.” This is a pecuniary legacy.

Why should you include pecuniary legacies in your Will?

Pecuniary legacies are by no means a sure choice for everyone, and you will have to consider their benefits carefully before deciding to include them.

Here are several reasons why you should include them.

Certainty for beneficiaries

A pecuniary legacy ensures that the recipient will receive a precise amount, regardless of fluctuations in the value of your estate.

This can provide financial security and reduce the risk of disputes.

Support for charities

If you want to support a cause close to your heart, a pecuniary legacy is a straightforward way to leave a specific sum to a charity.

It can also reduce the Inheritance Tax (IHT) liability on your estate, as charitable gifts are exempt from IHT.

Flexibility for complex estates

Pecuniary legacies can be particularly useful in estates with a mix of assets.

They allow you to leave monetary gifts without needing to decide which assets will be sold or allocated to meet the gift.

Simplifies estate administration

For executors, having clear pecuniary legacies in your Will makes it easier to distribute funds and fulfil your wishes.

This reduces the likelihood of delays or confusion during the probate process.

How to include pecuniary legacies in Your Will

Be specific

When drafting your Will, be clear about the amount and the beneficiary.

For example, “I leave £5,000 to my grandson, Jack, for his education.”

Plan for inflation

Over time, inflation can erode the value of a pecuniary legacy. Our team of solicitors can help you include provisions to adjust for inflation or ensure your overall estate is balanced.

Seek professional advice

Pecuniary legacies can impact the overall distribution of your estate.

For instance, if your estate value decreases, fulfilling these gifts might leave little for other beneficiaries.

We specialise in estate planning and can help you draft a Will that reflects your intentions while maintaining fairness.

As part of this process, we will help you consider:

The tax implications of pecuniary legacies
How these gifts fit into the broader context of your estate plan
Potential scenarios that could arise during estate administration

Including pecuniary legacies in your Will is a thoughtful way to ensure your wishes are honoured and your loved ones are provided for.

We are here to help you create a Will that reflects your priorities while making the process as straightforward as possible.

Contact us today to schedule a consultation and take the first step towards peace of mind.

Lauren Richardson-Kellam

Paralegal – Wills and Powers of Attorney

My legal career started in 2011 as a legal secretary. Over the years I have gained a great deal of insight in many areas of law, especially in relation to Private Client work.

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