How can I conveniently account for inflation in a will?
When writing a contract, say I want to include a clause that references the value of a thousand pounds in today's money. Since that same money is going to be worth less in a few years' time, I need what I write to take account of inflation. What's the easiest way to word that?
Economics - 1 Answers
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Answer 1 :
1000 pounds indexed for inflation using January 2009 as the base year. However if you're putting it in a will, this wording will not work unless you actually have 1000 pounds now and are willing to add to it at the rate of inflation. The way a will works is to direct how your assets will be divided when you die. If 1000 pounds, indexed for inflation, equals 1500 pounds when you die, but you only have 1200 pounds, the benefactor will not receive 1500, only 1200. So be careful what you write, or the 1000 pounds will just go to paying the legal bills of your estate. Your best bet is to re-write your will periodically, and keep it updated with changes in your life. Then you can have precise control over who gets what.
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