Hew are some explanations of the terminology used in Will Writing and Estate Planning:
Administrator. A person appointed to distribute your estate, according to the law, if you die intestate.
Advance Decision (or ‘Living Will’). In case you become too ill or severely incapacitated to express your wishes about the type of treatment you want to have or to refuse, you can express them in advance in this type of document.
Beneficiary. An individual or organisation that is to receive something from your Will.
Bequest. A specific gift of money, an item, property, or business assets that you leave to a beneficiary.
Chattels . Your furniture, car and personal possessions.
Codicil. An addition or change to an existing Will.
Enduring Power of Attorney (EPA), If made before 1st October 2007, an EPA continues to be valid It has been replaced by the Lasting Power of Attorney (LPA) which offers more safeguards to the donor and a wider ambit.
Estate. Everything you own at the time of your death. This includes your business assets.
Executor. A person of 18 or over, appointed by you to carry out your wishes as stated in your Will. An Executor may be a beneficiary.
Funeral Wishes. Your can stipulated the basic arrangements you wish to be made for your funeral your Will. However it is one part of a will which is not binding on the Executors.
Guardian. A person you appoint to look after your children if they are under 18 at the time of your death.
Inheritance Tax (IHT). A tax paid on assets at death. Currently 40% of the value of your estate above £312,000.
Intestate (and Intestacy.) If you die and there is no valid Will, the Law ‘declares’ you to be intestate. and decides how your possessions should be shared out. Intestacy is the name for this situation.
Joint Tenant. A co-owner of property who automatically inherits the share owned by a deceased joint tenant.
Lasting Power of Attorney. A provision for decisions to be made on behalf of those who lack mental capacity. You can, as the donor, give another person (the attorney) the power to act for you should you lose the mental capacity to manage your own affairs and personal welfare.
Legacy (same as a bequest)
Partial Intestacy .This arises if parts of a Will are incomplete or insufficient.
Probate. The process, after your death, by which your affairs are settled and your Will is validated. Your Executor(s) obtain a Grant of Probate before they can distribute your estate according to your instructions.
Residue (or Residuary Estate) What’s left of your estate after all debts, taxes, expenses, legacies and bequests have been paid. A Residuary Beneficiary receives a share of your residuary estate.
Settlor. A person who places assets into a trust.
Tenants in Common. Each Tenant in Common owns a share of the property which can be passed on in a Will.
Testator or Testatrix. The person making the Will
Trustee. A person you appoint to manage Trust assets on behalf of beneficiaries. A Trustee can be an Executor.
Will Trust. A legal instrument, used in a Will, to ensure that certain assets are held for and distributed to chosen beneficiaries.
Witnesses. Two independent witnesses must see you sign your Will. There is no need for them to read it.
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