Glossary – Wills and Estates

Administration period

The period between the day after the date of death and completion of the administration of the deceased’s estate.

Administrator

The person appointed by the Court to administer a deceased person’s estate, usually where there is no Will or if executors are not named in the Will.

Attest

Confirm the truth of.

Bankruptcy Search

A bankruptcy search will need to be made in respect of each buyer and any other individual contributing to the purchase price either by way of gift or loan, both at the outset of the transaction and once contracts are exchanged. The Bankruptcy Search Fee is currently £2.40 (including VAT) per search.

Beneficiary

A person or organisation who receives some benefit from a Will, Intestacy or Trust.

Capital Gains Tax (CGT)

A tax on the gain or profit you make when you sell, give away or otherwise dispose of something.

Certainty Will Search

Chattels

Personal property such as household and personal goods, furniture, jewellery, antiques and works of art, stamp and coin collections, cars, caravans and boats, electrical equipment, clothes, books and garden equipment.

Codicil

A legal document by which a person amends his or her Will.

Court of Protection (COP)

The Court with jurisdiction to make decisions and appoint Deputies to act on behalf of people who are unable to make decisions about their personal health, finance or welfare.

Deed of Variation

A legal document available to a Beneficiary of a deceased’s estate who wants to redirect the way in which their legacy is dealt with.

Deputy

Person appointed by the Court of Protection to act on behalf of a person who lacks capacity to make decisions for themselves.

Distribute

The division of an estate among the people entitled to it.

Domicile

Where you live.

Enduring Power of Attorney (EPA)

A document created before October 2007 appointing a person (an ‘Attorney’) to manage the property and financial affairs of another person (the ‘Donor’).

Estate

The collective name for the assets and liabilities upon which the calculation of Inheritance Tax is made when you die.

Executor / Executrix

A man/woman who administers an estate and is named as such in a Will.

Exempt gifts

Gifts that are exempt from Inheritance Tax.

Financial Asset Search

This search is usually only required when the deceased is not well known to the executors / administrators. It checks to see if there are dormant accounts / life insurance policies / pensions etc. that the personal representatives may not be aware of. It is more likely to be required in an intestacy situation.

General Power of Attorney

A legal document that allows someone (the “Donor”) to choose other people (their “Attorneys”) who they want to make decisions on their behalf about their property and financial affairs. Only effective while the Donor still has mental capacity.

Grant

The proof of legal authority required by the Personal Representative (i.e. Executor or Administrator) dealing with a deceased person’s estate.  There are different types of Grant of Representation depending on the situation: e.g. Grant of Probate (where there is a Will); Grant of Letters of Administration (where there is not a Will); Grant of Letters of Administration with Will annexed (where there is a Will but there is no executor named, or when the executors are unable or unwilling to apply for the Grant).

Grant of Representation

The size and nature of the estate will determine whether it is necessary for the Executor(s) (where there is a Will) or the Administrator(s) (where there is no Will) to apply to the Probate Court for legal authority to deal with the estate, e.g. to release money held in bank accounts, sell shares, transfer or sell a house.  This legal authority is called the Grant of Representation, specifically a Grant of Probate if there is a Will and a Grant of Letters of Administration if there is not.

Guardian

Person appointed by a parent (or another guardian or the Court) to be responsible for their child if they die before the child turns 18.

HMRC

Her Majesty’s Revenue and Customs.

Inheritance Tax (IHT)

A tax on the value of a person’s estate on death and on certain gifts made by an individual during their lifetime.

Intestacy

An estate where the person died intestate.

Intestate

If a person dies Intestate, they died without making a Will, or without fully disposing of their property by Will. The administration of the estate is then governed by the provisions of the Administration of Estates Act 1925: The Rules of Intestacy.

Issue

The children, grandchildren, great-grandchildren etc. of the deceased, but does not include step-children unless adopted by the deceased.

Lasting Power of Attorney (LPA)

A legal document that allows someone (the “Donor”) to choose other people (their “Attorneys”) who they want to make decisions on their behalf about their property and financial affairs or health and welfare, including when they lack the mental capacity to make the decision themselves.

Land Registry Search

Legacy

An amount of money or property left to someone in a Will.

Legatee

A person or organisation receiving a legacy.

Nil Rate Band (see also Inheritance Tax Threshold and Tax Free Allowance for IHT)

The amount of an estate on which there is no Inheritance Tax (IHT) to pay.

Oath for Administrators / Executors

Document signed and sworn by Administrator/Executor confirming details of the estate and willingness to act correctly in the estate. Used to obtain the Grant.

Office of the Public Guardian (OPG)

Government agency, part of the Ministry of Justice, which deals with registration of Enduring Powers of Attorney (EPA) and Lasting Powers of Attorney (LPA), and the supervision of Deputies appointed by the Court of Protection (COP). Helps Attorneys and Deputies to carry out their duties, and protects people who lack the mental capacity to make decisions for themselves.

Personal Representative

Umbrella term for person dealing with an estate, including Administrator and Executor.

Power of Attorney (POA)

An authority given by one person to another to act for him in their absence. The person authorised to act is the Attorney of the other. There are different types, e.g. Enduring POA (EPA); General POA; Lasting POA (LPA).

Predecease

To die before another person.

Probate

Strictly, the exhibiting and proving of a Will by the executors. In common usage as a general term to describe the process of obtaining a Grant of Representation.

Probate Court Fee

Probate Court/Registry

Court with jurisdiction to deal with matters of probate and administration of estates.

Residuary Beneficiary

Person(s) or organisation(s) receiving the residuary estate.

Residuary estate

The part of an estate which is left after the payment of specific legacies, debts, funeral expenses and IHT.

Specific Gift

Gift other than a gift of the residuary estate. Typically financial gifts or gifts of particular assets such as the deceased’s residence, furniture, jewellery and other household and personal goods and effects or shares in companies and business assets.

Statutory Notices

Statutory Notices are sometimes placed to protect the estate against claims from unknown creditors. These notices are usually placed in the London Gazette and in the Local newspaper. TSP will, if you wish, place these notices on your behalf. We will pass the charges that we incur for placing these notices back to you. These notices remain in place for a period of 2 months before they expire.

STEP Provisions

A collection of standard clauses which can be incorporated into a Will or Trust to assist Executors and Trustees in the administration of a Will or Trust. Collated by the Society of Trust and Estate Practitioners (STEP).

Swearing the Oath

If you have instructed a solicitor to deal with the estate then attendance at Court is not required and the application can be submitted by the completion and Swearing of an Oath, which we will arrange, in the presence of an independent solicitor, or by submitting a Statement of Truth.

Each Executor / Administrator will need to swear the oath on each exhibit /document. The exhibit will be the Will and possibly a Codicil if there is one. There will be a charge, per executor for swearing the Oath, currently £5, and a charge per exhibit, currently £2.

If you are not using the services of a solicitor the application can be made in person to the Court, this may however require attending Court for an interview.

Testator / Testatrix

Man/woman who has made a Will.

Trust

An obligation binding a person who holds the legal title (the “Trustee”) to deal with the Trust property for the benefit of another person (the “Beneficiary”).

Trustee

The person who holds the legal title to trust property and who is obliged to deal with the property for the benefit of the beneficiaries.

Will

The legal document by which a person declares their intention as to what should happen to their estate after their death.