Glossary of Probate 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 estate Abatement where the will names no executor 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 Ademption applied for: When a person makes a declaration in their Will I. The Will is valid but the deceased did not to leave a gift to another but revokes the gift appoint an executor before death 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 Testator (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 intestacy 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 courts (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 Executors appointed in a will or Codicil 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 use as evidence in court Apportionment The proportionate division of income between certain beneficiaries 01892 711 225 rtwvaluer.co.uk [email protected] Page 1 of 8 Asset Chattels Any property, money or belongings owned by the Any movable personal property, 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 minor 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 witnesses 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 Inheritance Tax age Capital Gains Tax Conveyancing Often referred to as CGT it is a tax on the profit Conveyancing is the legal work that needs to take made when selling an asset place when buying, selling and re-mortgaging property Chargeable Gift Covenant An item given in a will on which tax may have to be paid A legally binding obligation contained in a deed 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 law 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 Inheritance Tax 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 Discretionary Trust A trust where the Trustee 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 ownership 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 Indemnity 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 Inquest debts to be paid.