sign in sign up
<<
Home , Inquest, Will and testament

Glossary of Terms

The language of Probate is often unfamiliar. To assist with this, RTW Valuations has compiled a glossary to help better understand the various terms and what they mean:

A Administrator with the Will Annexed A person appointed to administer an Abatement where the will names no or where the The process of determining the order in which the named executor is incapable of performing or Estate will abate to pay debts, liabilities and unwilling to perform. There are several reasons expenses why a grant of probate with the will annexed is applied for: When a person makes a declaration in their Will I. The Will is valid but the deceased did not to leave a to another but revokes the gift appoint an executor before by either destroying it, selling it or II. In situations where there is a sole disposing of it in some other way executor, the sole executor might have predeceased the (note an ex- Administration spouse or ex-civil partner is also Managing the affairs of the Deceased, this considered as having predeceased the involves establishing, collecting and distributing testator on the day the divorce was made the assets of the Estate as laid out in the Will or, absolute or when the civil partnership was where there is no will, according to the nullified). rules that apply III. The appointed executor may have formally renounced his right to probate. Administration Period IV. The Executor may have been passed over The time taken from the date of death to the by the (in instances where perhaps completion of the Estates administration the appointed executor was not fit to take probate). Administrator V. The Executor has not taken out a grant A person responsible for dealing with the Estate even after they have been cited to do so. of a person who has died leaving no will or where VI. A previous grant had been given but the the appointed in a will or are Executor was not able to complete the unable or unwilling to act administration of the estate (an executors year is only for 12 months)

Affidavit A written statement, confirmed by oath, for

as in

Apportionment The proportionate division of income between certain beneficiaries

01892 711 225

rtwvaluer.co.uk [email protected] Page 1 of 8

Asset Chattels Any , money or belongings owned by the Any movable , assets or Deceased belongings not used for business or business assets i.e. any personal and domestic items Assets passing by survivorship owned by a testator/testatrix e.g. furniture, Where assets are held in joint names they will clothing, jewellery, car etc. pass to the survivor automatically rather than through the Will and are excluded from the value Codicil of assets for Probate purposes An addition or change made to a will. It has to be Attorney signed and witnessed in the same way as a will. A Someone appointed by another to act on his or codicil may be needed, for example, to increase a her behalf cash legacy, change a guardian or executor named in a will, or to add another beneficiary. Attestation Codicils should only be used to perform Witnessing a signature changes to the existing will. If more complicated changes are needed it is advisable to make an entirely new will B Beneficiary or Beneficiaries This is a legal document that amends (rather than Anyone or thing that is entitled to a share replaces) a previous will. These may add or (receives a gift) of the Estate of the Deceased replace small provisions (e.g. a change in executor). It must conform to the same legal Bequest (Legacy) requirements as the original will (such as the Any gift left in a will that is not land or buildings signature of the Testator) and have two who do not benefit from the Will in any way

C Conditional / Contingent Legacy Capital Taxes Office A gift with a condition attached for example a gift The Inland Revenue Department that deals with conditional on the beneficiary reaching a certain all aspects of Tax age

Capital Gains Tax Often referred to as CGT it is a tax on the Conveyancing is the legal work that needs to take made when selling an asset place when buying, selling and re-mortgaging property Chargeable Gift An item given in a will on which tax may have to be paid A legally binding obligation contained in a Crown Where an estate goes if there is no next of kin and no will

01892 711 225

rtwvaluer.co.uk [email protected] Page 2 of 8

D E De Facto Estate A common spouse; not legally married, but The property, money including stocks and shares living together as if married etc and possessions of the Deceased person

Death Certificate Estate Accounts Certified copy of the entry in the death register Accounts of the financial transactions recorded during the Administration Period Debts or Liabilities Monies owed or outstanding (e.g. tax, gas and Estate Administration electricity bills, hire purchase arrangements) This refers to the process through which a person’s assets (property, bank accounts, stocks Deceased and shares for example) are distributed according The Person who has died to the Deceased’s wishes

Deed of Variation Excepted Estate A Deed of Variation can be used by beneficiaries Where the gross value of the Estate of the person to redirect inheritance entitlements in a will or who has died is less than the intestacy for tax purposes within two years of the threshold or where the gross value of the Estate date of death. The most common reason for for Inheritance Tax is less than £1,000,000 AND drafting a Deed of Variation is to reduce the there is no Inheritance Tax to pay because of amount of Inheritance Tax payable from the spouse or charity exemption only Deceased’s Estate Executor / Executrix (f) This legal document allows the Beneficiaries to The person appointed in a will or codicil to change the terms of a will, even after the person’s administer the Estate of someone who has died death Executor’s Oath Devise A written statement sworn by executors or A gift of leasehold or freehold property stated in administrators of an estate, which accompanies the Will an application for a Grant of Representation A trust where the has the full power to F decide when and which certain beneficiaries are Fixed / Floating Charge to receive their capital A charge or mortgage is created over a specific asset or assets as security for borrowings or other Donee debts The person who receives the gift Freehold Donor The owner of a freehold property has complete The person leaving the gift and absolute of the land, and all buildings thereon

01892 711 225

rtwvaluer.co.uk [email protected] Page 3 of 8

G I. Grant of probate A ‘grant of probate’ is issued if executors appointed under a will Gift are administering the Estate Any legacy left in a will II. Grant of letters of administration with Grant of Letters of Administration will annexed. If the Deceased left a valid The document received from the Probate Registry will, but didn't appoint executors or they on submitting the Oath for Administrators. are unable or unwilling to act, then a ‘grant of letters of administration with The legal document issued by the Probate will annexed’ is issued Registry, appointing an administrator to deal with an estate. This is issued when there is a will but III. Grant of letters of administration if the no named executor, where the Executors are Deceased died ‘intestate’ i.e. leaving no unable to apply, where they do not wish to be will, then the Probate Registry will issue a involved in dealing with the Estate, or where the ‘grant of letters of administration’ Deceased has not made a will or any will that the Deceased has made is not valid Gross Value of Estate The total value of the Deceased’s property before Grant of Probate deducting liabilities The document received from the Probate Registry on submitting the Oath for Executors. Guardians The people chosen by the Testator to look after The document obtained by the Executors of a their children in the event of their death valid Will from the Probate Register. This is the legal process of administering the Estate of a I deceased person by resolving all claims and distributing the Deceased person’s property Immovable Property under the valid will Freehold or leasehold property

Grant of Representation An agreement to compensate someone for any The Court Order authorising a person to deal with loss suffered because of a failure to act by the assets/estate of the Deceased when no will is another in place, it is more precisely called either a Grant of Probate or a Grant of Letters of Inheritance Tax Administration. Often referred to as IHT, it is the tax which is This is a document issued by the Court, which payable on the Deceased’s Estate enables the person or people named in it to Inheritance Tax Threshold deal with all assets of a deceased person (i.e. The amount allowed before tax is payable. their Estate). It allows money to be collected £325,000 at April 2015 from any bank or building society accounts, property to be sold or transferred and for debts to be paid. There are three types of A public enquiry, held by a into the Grant of Representation in & Wales: circumstances surrounding a death

01892 711 225

rtwvaluer.co.uk [email protected] Page 4 of 8

Insolvency of Intestacy When there is a shortfall of funds to meet all The Intestacy Laws (1925) dictate how an estate liabilities will be distributed should a deceased die without leaving a legally valid will; see our Intestacy Instrument of Variation Diagram to determine who receives the property A document that varies a will or the provisions of and possessions of an estate in intestate intestacy after a person has died Leasehold Interest A form of property tenure where one party buys The right to property the right to occupy land or a building for a given length of time Intestacy The name for the situation that arises when Legacy (Bequest) someone dies without having made a legally valid An amount of money or property left to will; their Estate is then distributed according to someone in a will. A gift subject to the the laws governing intestacy fulfilment of a condition (e.g. “I leave my car to my eldest son on condition he passes his A- Issue levels") All the direct descendants of a person Letter of Administration Intestate The documentation given by the Registrar When a person dies without leaving a legally valid appointing people to handle a person’s estate in will cases where no executors are appointed, still living or willing to carry out the Executor’s duties. J It should be noted that it is courteous to ask a Joint Tenants person if they are happy to be an executor, before naming them in a will. Property that is owned by two or more people; joint tenants are usually husband and wife and in Liabilities the event of the death of one tenant, the other The debts that need to be settled by the Estate automatically becomes the owner of the whole following the death of the Deceased property. In these situations, it is not possible for a tenant to make a gift of their share of the property to someone else as it is not theirs to give The right to enjoy for life or for a specified time period either money or property which will L eventually revert to the original estate in some Lapse way on death When a beneficiary dies before the Testator Living Will Last A Living Will usually covers specific directives as to the course of treatment that is to be taken by A legal document that lays out the way a person caregivers. Law cannot necessarily enforce Living wishes to have their Estate distributed upon Wills death. It can also contain their wishes for their //celebration

01892 711 225

rtwvaluer.co.uk [email protected] Page 5 of 8

M Matrimonial Home Personal Chattels The place where a husband and wife live Any movable personal property, assets or belongings not used for business i.e. any personal Minor and domestic items owned by a testator/testatrix A person under the age of 18 e.g. furniture, clothing, jewellery, car etc.

Moveable Property /s Any property that is not fixed e.g. personal A person/s entitled to deal with the Deceased’s chattels Estate, an executor or administrator

Post Mortem N A medical examination of the body to determine Net Value of Estate the The value after deducting liabilities Potentially Exempt Transfer Next of Kin A gift made during ones lifetime that is exempt The nearest blood relative of the Deceased from Inheritance Tax if the Donor lives for seven years after making the gift Nil Rate Band Allowance The amount that can be passed to beneficiaries Power of Attorney without paying Inheritance Tax Authorisation to act on someone else's behalf

Nominated Property Power Reserved Assets that can be given to a beneficiary outside Where a named executor on the Will declines to of a will or estate act but reserves the right to do so at a later date

Notary Public Predeceased A legal officer appointed to deal with legal Someone who dies before the person who has documents for international use made the Will

O Oath A pledge to tell the truth often calling upon God as a

P Pecuniary Legacy A gift of money

01892 711 225

rtwvaluer.co.uk [email protected] Page 6 of 8

Probate Residuary Beneficiary Probate is an official form that gives the Any person entitled to receive the whole or a Executors of a will the right to deal with the share of any residue of the Estate, under the Deceased’s assets and property. It acts as terms of the Will or on intestacy that the Executors have the authority they need to handle the Estate of the Deceased person. This Residue / legal procedure must be undertaken to establish What remains of the Estate after all debts, that a will and codicil are genuine and valid. Inheritance Tax, liabilities and all other expenses (including those for the ) have been The term used in England and Wales for applying deducted and all bequests (money legacies, for the right to deal with a deceased person’s specific gifts) have been paid estate is often referred to as administering the Estate. Different terms are used depending on whether or not the person in question left a will When the Testator decides to change their Will completely and invalidates the previous one Probate Registry A court within the Division of the ; responsible for making sure that the Will is S valid and the Applicant is entitled to handle the Satisfaction Estate of the Deceased Settling a debt or obligation

Pro Rata Proportionately A person who has set up a trust Proving the Will Severance Making the application for probate to the Probate Registry The action of splitting the ownership of a property; usually done so that joint tenants

can become tenants in common and leave R their share of the property to someone other Realisation than the other tenant. Converting estate assets into cash Social Fund Registrar Part of the Social Security system that may The person who officially registers the death provide help with the cost of a funeral (every death must be registered by the Registrar of Births, and ) Specific Legacy Renouncing Probate Specific gifts left to specific people named in a Where a named Executor in a will signs a legal will document cancelling his appointment from the start of the administration period

01892 711 225

rtwvaluer.co.uk [email protected] Page 7 of 8

T V Tenant for Life Valuation Property that is owned by two or more people; Appraisal of the value or price an asset or chattel joint tenants are usually husband and wife and in might be reasonably be expected to realise when the event of the death of one tenant, the other sold automatically becomes the owner of the whole property. In these situations, it is not possible for Value a tenant to make a gift of their share of the Price attributed to an asset or chattel in a property to someone else as it is not theirs to give valuation or realised when sold

Tenants in Common Property is owned jointly but each joint owner has W a distinct share forming part of their Estate on Will death, which does not pass automatically to the The legal documentation that allows a person to surviving tenant make decisions and leave instructions on how they wish their Estate to be managed and Testament distributed after their death; it can also contain Another name for a will details of their wishes for burial and cremation. It usually names the Executors Testate Dying leaving a will Witnesses The persons who must be present to see the Testator / Testatrix (f) Testator sign the Will. They must also sign the A testator is a person who has written and Will themselves and should not be beneficiaries executed a Last Will and Testament that is in of the Will effect at the time of their death that sets out their wishes and requests as to how their Estate should We hope this glossary has helped with the be divided in the form of a will language of Probate and is as complete as possible. Please let us know if we have Trust missed anything! An arrangement set up by will or deed with being appointed and given money or assets to hold and manage for the defined beneficiaries

Trustee Someone who is given the legal responsibility to holds any assets until nominated beneficiaries meet certain criteria set out in the Deceased’s Will e.g. until a beneficiary reaches the age of 18. Trustees normally have powers to distribute monies and have full power to sell and invest

01892 711 225

rtwvaluer.co.uk [email protected] Page 8 of 8