Testamentary options

Sometimes a testator may wish to provide for a beneficiary not through the means of an outright gift, but rather through giving him/her the opportunity to purchase a property which is within his estate. An example might be where a person is occupying property which belongs to a testator either as a tenant or simply as a family member, and while the testator does not wish to give them the property for free, he would be content if they purchased the property at the market price or, indeed, at an undervalue. This is a testamentary option. Although testamentary options are a rare breed, they do come up and understanding the particular rules which apply to them (and in distinction to options granted during lifetime) is important – both for the will draftsman and for those who are seeking to construe wills where such options have been included.