Don't let any technical jargon stop you from writing a Will. Our Wills jargon buster is the missing piece of the puzzle. Once you read it, you'll understand everything you'll need to know about making a Will. And if you need anything explaining a little more, or just want some more reassurance, well that's what our dedicated telephone support team is here for.
A
Administrator
An Administrator is the person(s) selected to manage the deceased’s affairs and estate should they have died without making a Will. The Rules of Intestacy dictate who the Administrator’s can be.
Affidavit
An Affidavit is a written statement made under oath.
Assets
Things you own of value e.g. property, land, savings and investments and family heirlooms.
B
Beneficiary
A person who will inherit something from the deceased’s Will.
Bequeath
To Bequeath is to leave money or property to a Beneficiary.
Bequest
A gift of property in a Will.
C
Codicil
A legal document that allows you to make minor changes to an existing Will.
Crown
This is another term for the Government. The Crown will inherit your estate if you die without making a Will and have no living relatives.
D
Domicile
Your country of origin, determined at birth by the place where your father considered his permanent home, and where you are permanently resident e.g. England.
E
Estate
Your estate is a collective term for everything you own independently e.g. property, car, bank accounts and jewellery. Anything you own jointly with a partner automatically will pass to the joint owner.
Executor
The Executor is the person(s) you appoint to manage and administer your estate.
G
Gift
A gift is something left to a Beneficiary.
Grant of Probate
This is a legal document which is issued to the Executor(s) to give them the legal authority to administer the deceased’s estate.
Guardian
A Guardian(s) is the person(s) chosen to look after any children under the age of 18 in the event of their parent’s death.
I
Inheritance Tax (IHT)
This is the tax payable on the deceased’s estate. IHT is only applicable if the estate is worth in excess of £325,000 for individuals or £650,000 for married couples/civil partners*. If the estate exceeds these values, the excess amount will be taxed at 40% subject to any other relevant reliefs.
E.g. E.g. A single man dies. His estate is worth £450,000. The amount taxable is £125,000. This is taxed at 40%. The estate would pay £50,000 Inheritance Tax.
*These figures are the current 2010/2011 Inheritance Tax free allowance.
Only the unused percentage of the transferrable nil rate band allowance of the first spouse to die can be used on the second spouse’s death.
Intestate
This is the term used when someone dies without a valid Will.
L
Lasting Power of Attorney (LPA)
A LPA is a document in which you appoint a person(s) called an Attorney(s) to manage your financial and property affairs and personal welfare decisions should you become unable to do so. This may be due to an accident, a disability or the onset of mental illness including Alzheimer’s or Dementia.
Legacy
A Legacy is a collective term for what you leave behind after you die. There are three types of legacy: A Pecuniary Legacy describes a specific amount of money. A Specific Legacy is a particular item e.g. “my car”, “my jewellery. A Demonstrative Legacy is a gift of money from a particular account.
Life Interest Trust
A Life Interest Trust is for the benefit of a beneficiary to receive income from the trust fund for their life and then when they die for other beneficiaries to receive the capital from the trust fund. It is also known as an Interest in Possession.
M
Memorandum of Wishes
The Memorandum of Wishes is the part of your Will which deals with funeral arrangements. This includes choosing from your preferred method of burial to what music you would like playing to whether you want flowers at the service and organ donation.
N
Nil Rate Band
The Nil Rate Band relates to the Inheritance Tax threshold. It is the term used to describe the value an estate can have before it is taxed. The 2010/2011 Nil Band Rate is currently £325,000 for individuals and up to the equivalent of two Nil Rate Bands (£650,000) for married couples/civil partners.
P
Probate
This is the legal progress required to administer the assets of a person who has died.
Property Protection Trust (PPT)
PPT is a Trust you set up in your Will to protect your share in your property. A PPT allows you to look after the needs of your surviving spouse or partner and those of your children and other beneficiaries. If you die before your spouse or partner, under the terms of the PPT in your Will, your share of the jointly-owned property will go into a Trust instead of to your spouse or partner. This means your share cannot be used by your spouse or partner to fund their residential care. Your Beneficiaries acquire the value of your property share. PPT also ensures your spouse’s right to remain in the house for the rest of their life.
R
Residuary Beneficiary
This is the person named in a Will to receive the remainder of the estate after all debts have been paid and all other beneficiaries have received their inheritance.
Residue
This is the term given to the part of an estate left once all debts have been paid.
Right of Occupation
The Right of Occupation allows someone to remain in your property after your death for a given period of time or until their death.
Rules of Intestacy
If someone dies without making a Will (aka Intestate), the Rules of Intestacy apply. These rules will decide who will manage and administer the estate and who will inherit what from the deceased’s estate.
S
Substitute Beneficiary
A Substitute Beneficiary is a person named in a Will who will inherit the gift should the first named Beneficiary die before the Testator.
T
Testator (Testatrix)
A Testator is the person who is making the Will. Testatrix is simply the female equivalent.
Trust
This is a legal arrangement where one or more people (up to four) are made legally responsible for the assets left to the Beneficiaries. A Trust is usually needed when naming children (under the age of 18) as Beneficiaries. Trusts usually expire once certain events occur or conditions are met e.g. the Beneficiaries reach the specified age where they are entitled to inheritance.
Trustee
A Trustee is the name given to the person(s) who is in charge of managing and administrating the Trust. This typically involves looking after the property and/or assets for the Beneficiaries until they are old enough to manage it themselves.
W
Will
A Will is a legal document where a person explains what they would like to happen to their estate after they die e.g. who gets what.
Witness
A witness is someone who signs the Will, confirming they have seen the Testator sign the Will or that the Testator has said the signature on the Will is his. A Will must has two witnesses who must sign the Will with the other witness and testator present. The named witnesses should not also be Beneficiaries, nor should any relatives or spouses or partners of any Beneficiaries. Relatives of the testator should not be witnesses to the Will either.