Forms of Legacy

Whether it is part of a new Will or in a short codicil to an existing Will, it is straightforward to remember any GDST school (or the GDST itself) with a legacy. The following are the principal forms of legacy:

A Residuary Gift

A residuary legacy enables you to give whatever remains of your estate after all bequests, debts and fees are met. You might choose to leave the whole or part of the residue to a particular beneficiary.

A Pecuniary Gift

Pecuniary legacies are perhaps the most straightforward way of giving a bequest, where you leave a specified sum of money to the named beneficiary. You can either specify that the value of the gift remains constant, or you can guard against inflation by instruction to your executors that the gift should be index-linked.

A Specific (Non-Monetary) Gift

This form of legacy allows you to leave particular items or assets to the named beneficiary which are not in the form of money. These assets might include stocks and shares, property, works of art or other valuable items (eg. a piano or a collection of rare books). It is important to review this type of Will or codicil regularly, because your gift will lapse and fail if the asset is no longer part of your estate upon your death.

A Reversionary Gift

This type of legacy allows for your estate or particular assets to be passed on to your spouse, children or other named individuals, for their lifetime. On their death the whole or a portion of these assets reverts to the beneficiary of the reversionary legacy. Since the detail of this type of legacy tends to be more complex than the forms above, it is best to consult your legal advisor regarding the appropriate wording.

A Substitutional Legacy

This means that you can leave your Estate to a particular person or persons, but if they predecease you then the bequest could go to your chosen school or the GDST.

Deed of Variation

If you become a beneficiary of someone else’s Will, you may wish to consider transferring the whole or part of that inheritance to your chosen school or the GDST using a deed of variation. The value thus transferred would be exempt of the Inheritance Tax which would otherwise be payable out of the Estate in respect of the value transferred.

Life Assurance

A final suggestion is to take out a life assurance policy with your chosen school or the GDST as the named beneficiary. In this way, for a very modest premium, you can ensure substantial benefits for the policy’s beneficiary.

It is, of course, also possible to combine one or more of the above.

Important Notes

If you are in any doubt as to how to compile your Will or any codicil, you should consult a solicitor. This is particularly so in connection with any residuary gift where the dangers of unintended consequences are greater.

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