ADMINISTRATION PERIOD

The period between the date of death and the date the estate is finalised

ADMINISTRATOR

A person responsible for winding up the estate of a person who has died leaving no will or a person who has died leaving a will but their executors cannot act

ADMINISTRATION

Dealing with the estate of a person who has died

AFFIDAVIT/OATH

Written statement by a person called ‘the deponent’, who signs it and swears or affirms to the truth of its contents

ANNUITY

A yearly payment of a fixed amount to be made every year to a person until that person dies

ASSET

“Property” owned by a person who has died is called the assets of the estate. E.g. house, bank account, shares, life policies

ATTORNEY

A person who is appointed by another to act as his agent in some or all of his affairs. The appointment must be in writing (a power of attorney). Acts of the attorney are as valid as if they were acts of the appointer

BENEFICIARY

A beneficiary is a person who receives something from a trust or an estate and their right is called a beneficial interest

BENEFICIAL JOINT TENANTS

Two or more persons who own land together and whose interest will pass by survivorship, on death, to the surviving co-owners (to be contrasted with tenants in common)

BEQUEATH

Often used to mean to leave something to someone in a Will. Strictly speaking, only personalty is bequeathed, realty is devised.

CAPACITY

Some people are deemed incapable of making legally binding decisions, they are said to lack capacity, eg, persons of unsound mind

CAPITAL

The opposite of income. Capital sums are one off payments

CAPITAL GAINS TAX

A tax paid by a person on the profit they have made on an asset they have sold that has increased in value. Often abbreviated to CGT

CHATTELS

Physical personal property e.g., jewellery, cars, etc. Does not include land or intangible items such as bank accounts

CLASS

A group of people within a will, e.g “my nephews” or “my employees”

DEVISE

To leave something to someone in a will, realty is devised, and personalty is bequeathed. Can be used as a noun or a verb

ENGROSS/ENGROSSMENT

To engross is to prepare a final version of a legal document ready for it to be executed and that prepared document is called the engrossment

ESTATE ACCOUNTS

The estate accounts set out the assets of the estate, the liabilities at death, any administration expenses, income received during the admin period (e.g., interest, dividends, rental income) and Distribution Accounts

EXCEPTED ESTATE

An estate where no Inheritance Tax account is necessary if certain criteria are fulfilled

EXECUTOR

A person appointed by a Will or Codicil to administer an estate

GRANT OF REPRESENTATION

The Court Order authorising a person to deal with the assets of a deceased person. If a will is proved by the executors, it is more precisely called a grant of probate; otherwise, a grant of letters of administration (with or without a will annexed)

INCOME

The opposite of capital. Income sums are recurring payments.

INDEMNITY

An agreement to make good any loss suffered as a result of an act or failure to act by another

INHERITANCE TAX

A tax that is paid on a deceased person’s property. Sometimes, it is also paid on lifetime gifts. Often abbreviated to IHT

IN SPECIE

Describes the transfer of an asset in its current form rather than as an equivalent amount in cash.

INTER VIVOS

A Latin word for ‘between living people’. A gift made Inter Vivos is a gift made while a person is alive

INTESTACY

Intestacy occurs when a person dies without leaving a valid will. The rules of intestacy apply in these circumstances

ISSUE

Children, grandchildren and all other remoter descendants

LEGACY/BEQUEST/DEVISE

A gift of chattels/assets by will

LEGAL ESTATE

The estate capable of being transferred or conveyed at common law

LEGAL STATEMENT

Has replaced the old ‘Oath for Executors’ or ‘Statement of Truth’ on the PA1P. The Legal Statement confirms the executor will administer the estate in accordance with the law and confirms the application for the grant is truthful

LIFE TENANT/LIFE INTEREST

A person entitled to income only, not capital.

MINOR/INFANT

Person under the age of 18 years

NIL RATE BAND

The amount of the Inheritance tax threshold at any time chargeable at nil per cent

PARTIAL INTESTACY

This arises when a person dies and has left a will that disposes of some but not all of their property

PERSONALTY

Personal property. Every type of property that is not realty.

PERSONAL REPRESENTATIVES

A general term that means either an administrator or an executor

POWER OF ATTORNEY

A legal document where one person gives another person the right to make decisions on their behalf

REALTY

Real Property. Land in any form, e.g., farms, houses, rights of way.

RELIEF

A term used in relation to tax, meaning that tax is charged at a reduced rate

RULES OF INTESTACY

Please see Intestacy

STATUTORY LEGACY

A sum to which a surviving spouse/civil partner is entitled from the estate when the deceased died intestate with children. The new sum of £322,000 took effect from 26 July 2023

TENANTS-IN-COMMON

When two or more people own property and one owner dies, their share of the property passes in accordance with the terms of their will or intestacy, not automatically to the other owner(s).

TESTATE

To die leaving a valid will

TRUSTEES

The people that you appoint to manage the trust

WILL

A legal document that contains instructions as to what should be done with one’s money and property after one’s death