Writing up a will for my portfolio

How do you write up instructions of a will for your portfolio in case you die?

I don’t have a lot invested on my ISA at the moment around 5K but I want to make sure if anything happens to me that my money will keep getting reinvested until it matures enough to say to £50k before any of it will get distributed to my family etc.

Is there any company that look into this for you? And is Freetrade willing to work with a will advisory to continue manage my portfolio if any untimely death.

1 Like

Possible ways:

  1. set it up as trust now, with you or your family as the beneficiaries, but with rules in the event that you die.
  2. in your will, you leave ask your executors to set up a trust for your family’s benefit and which has those rules.
  3. (this is not quite what you’re asking for, but you could set up a sipp for your beneficiaries - that locks the money away until they’re 50-something.)

Both ways will have costs, and you should talk to a solicitor about it. Freetrade may not allow an account to be owned by a trust rather than an individual. There may be other ways to do it - I hope that some on this community is a lawyer and will pop by to say “no it’s much easier than that” :slight_smile:

Freetrade should be able to add a beneficiary feature like every brokerage has?

1 Like

What you describe is really not practical for small amounts of money (sub-multi-millions). This would require you to create a company or a trust that is a separate legal entity from yourself, so that it continues after your death, with someone designated to take over management from you but constrained by your instructions about how you want the money managed. This will not be cheap.

Your shares are just part of your total assets, like your house, car, bank account, and beanie baby collection, and when you die they are liquidated and the proceeds divided among your heirs according to the instructions in your will. Stocks and shares are not treated any differently from any of your other property.

You are probably thinking of SIPPs. The ‘beneficiary’ feature is a specific feature of pension funds, but it does not exist for other kinds of investments. Freetrade does allow you to designate a beneficiary for your SIPP of you have one.

3 Likes

TBH, you’re probably best just to mention the existence of your portfolio in the will, note that it should be added to the estate and say how the remains of your estate is be divided up after specific named things are given out.

The size of your portfolio and value of individual shares could change a lot between now and when you die, so it’s probably best to divide it up purely on a value basis, as what seems like a fair split now could be very one-sided in the future. Probably more of a consideration is that I don’t think Freetrade have any provision for transferring shares even between accounts you own yourself, let alone to other people. I think they have to just sell everything and then transfer cash.

1 Like

Would be nice to see from the Freetrade team to have an official response to this.