Administration of an Estate
The full process of dealing with all of the estate including applying for the Grant of Representation, completing HM Revenue & Customs forms, and dealing with all assets and liabilities and distribution.
Beneficiary
A person entitled to benefit from a will or trust either now or in the future.
Bequest
A gift of money or personal property made in someone’s will.
Chattel
Personal belongings that can be moved eg furniture, jewellery (excludes land and realty).
Codicil
A separate document amending the terms of a Will.
Common Law Partner
Two adults that are in a relationship together and live together as a couple without being married.
Deed of Variation
A deed by which one or more beneficiaries of an estate give up their entitlements under the Will or Intestacy Rules in favour of someone else.
Devise
To give land or realty by Will.
Discretionary Trust
A trust where benefits from the trust fund are allocated at the Trustees’ discretion to any one or more of several beneficiaries at such time or times as the Trustees may decide.
Domicile
The place where a person has their permanent principal home to which they return or intend to return.
Estate
All of the assets of a person at the date of their death.
Executor
Person appointed to put into effect the terms of a Will.
Excepted Estate
An estate where a full inheritance tax account is not required usually due to the size of the estate or where the estate does not exceed £1,000,000 and there is no Inheritance Tax to pay due to exemptions such as spouse or civil partnership exemption or charity exemptions.
Grant of Letters of Administration
The legal document of title issued by the Court where the deceased did not leave a Will.
Grant of Letters of Administration with the Will annexed
The legal document of title issued by the Court where the Executors of a Will either do not want to act or cannot act.
Grant of Probate
Official confirmation by the court of the validity of a Will and the executors named in it.
Grant of Representation
An umbrella term covering a Grant of Probate and Grant of Letters of Administration and Grant of Letters of Administration with the Will annexed.
Inheritance
Parts of someone’s estate passing to a beneficiary.
Inheritance Tax
The tax paid on the value of a deceased’s estate above a set threshold.
Inheritance Tax Threshold
The amount of someone’s estate on which no Inheritance Tax is charged. The current allowance whereby no Inheritance Tax is charged is £325,000 (although see residence nil rate band below).
Interest in Possession Trusts
Trusts where the income (or benefit) is given to a specific beneficiary.
Intestate and intestacy
A person who dies without leaving a Will is said to die ‘intestate’. The estate is distributed according to the Rules of Intestacy.
Issue
Children, grandchildren, adopted children.
Legacy
A gift under the terms of a Will.
Letters of Administration
Acknowledgement by the Court of the appointment of Administrators (eg in the absence of Executors).
Mirror Wills
Separate but almost identical wills made by spouses, civil partners, life partners etc where each leaves the same gifts, usually to each other, and thereafter to substitute beneficiaries (eg children, wider family, friends, charities etc).
Pecuniary Legacy
A fixed sum of money given by a Will.
Personal Representative
Generic term used for executors and administrators.
Probate
The court process by which a Will is determined to be valid and granted legal effect.
Probate Search
A search carried out to find a probate record, or an application to be sent a copy of a probate if it is granted in the next 6 months.
Residuary Beneficiary
The person or people who receive what remains of an estate after all expenses, liabilities, tax and other legacies have been paid.
Probate Disbursements
Disbursements are third party expenses paid on your behalf for example the probate court fee and fees for lodging Statutory Advertisements.
Probate Court Fee
This is the fee charged by the Probate Registry to issue the Grant. When the application is submitted by a solicitor the probate court fee is £155.00 plus £1.50 per official copy of the Grant of Probate required.
Residence Nil Rate Band
In addition to the standard nil rate band (currently £325,000) a residence nil rate band is an additional allowance available if certain qualifying conditions are met – broadly if a person’s estate includes their home and it is left to their children or other direct descendants. The rate for 2020 to 2021 is £175,000.
Residue
The remainder of the estate after all legacies, liabilities, tax, testamentary expenses etc have been paid.
Settlor
The person who establishes a trust.
Statutory Advertisements
As a Personal Representative one of your responsibilities is to deal with any claims against the estate. It is recommended that you place Statutory Advertisements (under the Trustee Act 1925) which protect the Personal Representatives from being personally liable for any unidentified creditors.
Severance of Tenancy
This allows a couple to own their property as tenants in common and to leave their respective shares of the property in accordance with their Wills rather than their share passing automatically to the survivor (which happens if they are joint tenants).
Testator/Testatrix
The person making a Will.
Trust
A trust is a way of managing assets (money, investments, property or land) for people and involve the settlor, the trustee and the beneficiary.
Trustee
A person or firm that holds or administers property or assets for the benefit of a third party.
Will
A legal document that declares a person’s wishes about the way their estate should be handled when they die.
Will Trust
When the trust is created on death and the provisions are set out in the deceased’s Will.
