Can I allocate debentures as part of my assets in my Will?
A debenture is a type of loan or debt instrument issued by a company to an investor. It typically carries an interest component and has a set maturity date when the principal is to be repaid.
Unless otherwise stated in the terms of the debenture (for example, provisions specifying what happens upon the death of the holder), debentures are considered part of your estate and can be allocated in your Will. Additionally, the enforceability and recovery of the loan remain subject to the terms and conditions set out in the debenture instrument.
If the debenture has already matured or no longer exists at the time of death, (for getArrange Wills) the gift by default will be considered to have lapsed and is no longer valid. As with all other assets, it is the recommended practise to update the Will when circumstances changed e.g. when the debenture has matures or converted to shares etc depending on the terms.
To list a debenture, go to “Allocate Assets” and add it under the “Other Assets” category.
Item Name
Money owed to me by {Company Name} under a debenture dated {Date}
Identifying Details (e.g. description, location)
Principal amount of {Currency and Amount}, maturing on {Date}, debenture certificate number {debenture certificate number} (if applicable).
Estimated Market Value
While you can put in the principal amount, this does not need to match the principal amount. Consider it the value the debenture may fetch if sold in the market.
Additional Instructions
A copy of the debenture agreement can be found together with my Will for reference. I direct my Executor(s) to take reasonable steps to recover any outstanding principal and interest due under this debenture, and to include any recovered sum as part of my estate for distribution.
