What Is Moveable Estate In Scottish Law? Key Facts And Everything You Need To Know

In Scottish law, a moveable estate refers to all personal property or assets that are not tied to land or buildings. It encompasses items and assets that can be physically moved or are intangible but not classified as heritable property (real estate). Here’s a detailed explanation:

1. Definition of Moveable Estate

A moveable estate includes any property or assets that are not considered “heritable” (immovable property like land and buildings). In the context of inheritance and succession, Scottish law distinguishes between heritable estate (real property) and moveable estate (personal property).

2. Examples of Moveable Estate

Some common items that fall under moveable estate include:

Cash (in bank accounts or physically held).
Furniture and household items.
Vehicles, such as cars, boats, or motorcycles.
Jewelry and personal belongings.
Investments like stocks, bonds, and shares.
Digital assets, such as cryptocurrency or online accounts with monetary value.
Business interests that are not tied to land or real estate.
Proceeds from life insurance policies, if applicable.

3. Importance in Succession Law

Under Scottish succession law:

Moveable estate is divided differently from heritable property when a person dies intestate (without a will).
Legal rights (a feature of Scottish law) apply only to the moveable estate. These are entitlements given to a spouse, civil partner, and children regardless of the deceased’s will.

Example of Legal Rights in Moveable Estate:

Spouse/Civil Partner: Entitled to a portion of the moveable estate (known as the “relict’s right”).
Children: Entitled to a share of the moveable estate (known as “legitim”).

For example, if a person dies and leaves £50,000 in a bank account (moveable estate), their spouse and children may each claim their legal share under Scottish legal rights.

4. Distinction from Heritable Estate

The heritable estate in Scotland includes land, buildings, and property rights related to real estate. Heritable property is often handled differently in terms of inheritance:

It passes directly to the nearest heir under primogeniture rules (if no will exists).
It is not subject to legal rights claims.

5. Taxation of Moveable Estate

Moveable estate forms part of the total value of a deceased person’s estate and is subject to Inheritance Tax (IHT) where applicable. Inheritance tax rules apply to both moveable and heritable property, but moveable assets may be easier to liquidate for paying the tax.

6. Practical Examples

Example 1: A person in Scotland passes away with a bank balance of £100,000, a car worth £10,000, and a home worth £300,000. The bank balance and car are moveable assets, while the house is heritable property.
Example 2: If the person had a surviving spouse and two children, legal rights would allow the spouse and children to claim shares of the £110,000 moveable estate but not the house.

Key Points to Remember:

The distinction between moveable and heritable estate is a unique feature of Scots law.
Legal rights apply only to the moveable estate and cannot be overridden by a will.
Proper estate planning in Scotland involves considering the division of both moveable and heritable property to avoid disputes.

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