What are personal chattels?

"Chattels" is one of those legal words that turns up in a will and means very little to most of the people reading it. In ordinary English, it means belongings.

The legal definition

In England and Wales, section 55(1)(x) of the Administration of Estates Act 1925 says personal chattels means "tangible movable property", other than property which:

• consists of money or securities for money
• was used at the death of the person solely or mainly for business purposes
• was held at the death of the person solely as an investment

So there are two tests: a thing has to be something you can touch and move, and it mustn't fall into one of those three exclusions.

Examples of personal chattels

Some cases sit in the middle. A valuable stamp collection could be a hobby or an investment. A car used partly for work is still a chattel, unless it was mainly used for the business. Under the wording, something is excluded only if it was held solely as an investment. So if the person enjoyed the painting on the wall and also hoped it would go up in value, it's probably still a chattel. Disagreements about this are one of the times a solicitor's opinion earns its fee.

Why the word matters in a will

Many wills give "my personal chattels" to one person, such as a husband, a wife or the children equally. Everything in the list on the left then goes to that person or group, and doesn't form part of what's called the residue, which is everything left over and often split differently. Where a collection or a painting is worth a lot, the difference can be significant.

Wills can also give a specific thing to a specific person, such as "my mother's engagement ring to my niece Anna". Those gifts come first, and the general clause deals with the rest of the chattels.

A will made before 1 October 2014 may be read differently. The definition changed on that date, and the new wording doesn't apply to wills written before then unless the will says otherwise. The older definition has an antique feel. It lists things like carriages, horses, stable furniture, plate, linen, china and "wines, liquors and consumable stores". If you're dealing with an older will, it's worth checking which definition applies, because a will's own wording takes priority.

What happens to chattels without a will?

If someone dies without a will in England or Wales, the intestacy rules apply. A surviving spouse or civil partner takes all the personal chattels, whatever they're worth. They also receive the first £322,000 of the rest of the estate and half of anything above that. The other half goes to the children. If there are no children, the spouse inherits everything.

Unmarried partners don't inherit anything automatically under these rules, however long they've lived together. They may be able to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975, normally within 6 months of the grant, and it's wise to get legal advice quickly.

If there's no spouse, the children share the chattels equally along with the rest of the estate. In practice, siblings still have to agree who gets which things.

Scotland and Northern Ireland have their own rules. Scotland in particular has "prior rights" and "legal rights" that work quite differently, so ask a solicitor there if you're dealing with an estate.

Do chattels count for Inheritance Tax?

Yes. They're part of the estate and have to be included at open market value, meaning what they'd have fetched if sold on the date of death.

If the estate needs a full Inheritance Tax account, the chattels go on form IHT407. Separately, if you sell a chattel after you've inherited it, Capital Gains Tax usually doesn't apply when it sells for £6,000 or less.

What executors should do about chattels

If you're the executor, it's your job to find the chattels, keep them safe, value them and pass them to the right people. A sensible way to start:

1. 1Read the will for specific gifts and the wording of any general chattels clause.
2. 2Make a list of what's in the house, with photographs.
3. 3Work out whether anything falls outside the definition, such as business equipment or investments.
4. 4Get a value for anything significant.
5. 5Hand things over only once the debts are known and it's safe to do so. Our guide to clearing a house before probate goes into the timing.
6. 6Get a signed note from each person who receives something.

Common questions

Does personal chattels include money?

No. The legal definition specifically leaves out money and securities for money. Coins are the exception that can catch people out: a coin collection kept as a hobby may count as a chattel, though cash in a drawer doesn't.

Is a car a personal chattel?

Yes, unless it was used solely or mainly for business. A car used for shopping and family trips is a chattel, and so are classic cars kept for enjoyment.

Does personal chattels include jewellery?

Yes. Jewellery is a physical, movable thing and is treated as a personal chattel, unless it was held solely as an investment or as stock in a business.

Are chattels included in the residue of an estate?

Only if the will doesn't deal with them separately. Many wills give chattels to a named person or group first. If a will says nothing about them, they fall into the residue with everything else.

Sources

• Administration of Estates Act 1925, section 55
• Inheritance and Trustees' Powers Act 2014, section 3
• Administration of Estates Act 1925 (Fixed Net Sum) Order 2023
• GOV.UK: Who inherits if someone dies without a will
• Inheritance (Provision for Family and Dependants) Act 1975, section 1
• Inheritance (Provision for Family and Dependants) Act 1975, section 4

This guide is general information for people in England and Wales. The rules in Scotland and Northern Ireland can differ. It isn't legal, tax or financial advice, and Sortwell isn't a law firm or a valuer. If an estate is complicated or there's a disagreement, talk to a solicitor. Figures were checked on the date above.