How to Include Investments in a Will

Including investments in a will is an essential part of estate planning in England and Wales. Investments such as publicly traded shares, investment funds and stocks held in Individual Savings Accounts (ISAs) often represent significant value in a person's estate. When you prepare a will, clarity about how these assets should be handled can make the process of estate administration smoother for your executors and ensure your beneficiaries receive what you intend. 

This guide explains what investment assets can be included in a will, how they are treated on death, relevant legal and tax considerations, and practical steps for drafting effective provisions.

1. What Are Investment Assets for Estate Purposes?

Investment assets typically include:

• Shares and securities in companies listed on recognised stock exchanges;
• Unit trusts, open‑ended investment companies (OEICs) and exchange‑traded funds (ETFs);
• Shares held in ISAs and other investment wrappers;
• Corporate or government bonds and similar products. 

These assets can be held in personal investment accounts, ISAs or jointly with others. Their value forms part of your estate for distribution under your will and for Inheritance Tax purposes, unless the law treating them differently dictates otherwise. 

2. How Investments Form Part of Your Estate

If investments are held solely in your name at the date of your death, they become part of your estate and will usually pass according to the terms of your will once probate is obtained. 

Investments may also give rise to tax charges during settlement:

• Inheritance Tax (IHT): Most investments, including those held in ISAs, count towards the value of your estate and may attract IHT if the total estate exceeds the available thresholds. 
• Capital Gains Tax: If executors sell investments before distribution, the estate may have a charge if the assets have increased in value since death or since their valuation for IHT. 

Different tax treatments apply in specific cases, such as qualifying AIM shares, which previously enjoyed relief and now may only receive partial IHT mitigation, and pension arrangements, which will be subject to IHT from April 2027. 

3. Including Investment Assets in Your Will

a. Use a Residuary Clause

Rather than listing each investment holding individually - which can quickly become outdated - most wills use a residuary clause that deals with all remaining estate assets after specific gifts have been made. A broad residuary gift automatically includes investments held at death without needing account numbers or detailed schedules.

For example, a residuary clause might state your executor should pay “the rest and residue of my estate” to named beneficiaries. This naturally captures shares, funds and investment cash not otherwise disposed of.

b. Specific Gifts of Investments

You may choose to include a specific gift of investments if your intention is that a particular holding passes to a named beneficiary. Sample wording could be:

“I give my entire holding of shares in [company name] and all other investment securities held in [account name/number] to [beneficiary].”

This directs your executors how to deal with particular assets. If the investments are held across multiple platforms or change over time, consider whether a general residuary gift might be more effective.

c. Appointments for ISAs and Other Wrappers

Investments held in a tax wrapper such as a Stocks and Shares ISA form part of your estate for IHT and distribution unless otherwise directed. You can leave the value of the ISA or its underlying assets to a beneficiary. If you are leaving ISA investments to a spouse or civil partner, they may benefit from specific rules such as an additional ISA allowance equivalent to the ISA's value. 

4. Jointly Held Investments and Survivorship

If investments are held jointly:

• Joint tenancy: The asset often passes automatically to the surviving owner by right of survivorship and usually does not form part of your estate for distribution under your will. 
• Tenancy in common: Your share of the holding may be distributed under your will.

For example, a jointly held investment account in the names of you and another person may pass automatically to the co‑owner on death if held as joint tenants.

5. Probate and Transfer of Investment Assets

Before investments can be transferred or accessed by beneficiaries:

1. Apply for a Grant of Probate (if there is a will) or Letters of Administration (if there is no will) through the Probate Service administered by HM Courts & Tribunals Service.
2. Provide the grant to investment providers so they can release or transfer the assets to your executors' authority.
3. Executors can then transfer or sell assets according to your instructions and settle any estate liabilities. 

Until a grant is issued, most providers will not release investments, though they may allow limited actions such as selling assets to pay for immediate estate costs. 

6. Practical Steps When Preparing Your Will

a. Keep an Updated Investment Inventory

Prepare and regularly update a record of your investment assets, including:

• Names of investment accounts and platforms;
• Types of investments and approximate values;
• Whether assets are held jointly or individually.

Provide this list to your executor or a trusted contact so they can locate and administer assets efficiently.

b. Consult a Legal Professional

A qualified wills and probate solicitor can help ensure your will:

• Reflects your intentions clearly;
• Uses correct legal terminology;
• Minimises the risk of ambiguities that could delay probate.

Legal review is particularly valuable if your investment portfolio is complex or significant in value.

c. Consider Tax Planning

Discuss with a tax adviser or financial planner whether your estate, including investments, could benefit from tax planning measures such as lifetime gifts, use of trusts or valuations to mitigate IHT exposure.

7. Common Questions About Investments in a Will

Do I need to list account numbers for my investments in the will?
Generally, no. Listing every investment holding is not practical. A residuary clause combined with an up‑to‑date inventory given to executors is usually more effective.

Can I leave ISAs to anyone?
Yes. You can direct in your will that investments held in ISAs pass to named beneficiaries. If left to a spouse or civil partner, special ISA allowances may apply after death.

What happens if I forget investments when writing my will?
If assets are not specifically mentioned, they still fall within the residuary estate unless they pass outside the will (for example, by survivorship).

8. Summary

• Investments - including shares, funds and ISA holdings - generally form part of your estate for distribution under a will.
• A clear residuary clause simplifies including all investments without listing details.
• Specific gifts can be used for particular holdings if desired.
• Jointly held assets may pass outside your will by survivorship.
• Probate is usually required before investment providers will release assets to executors.
• Keeping an updated investment inventory and seeking professional guidance helps ensure your wishes are followed efficiently.