Making a will can be daunting, filled with unfamiliar terms and complex legal jargon. We strive to keep things as clear and straightforward as possible. However, you might occasionally encounter terms that are new to you. For the curious, we’ve compiled a handy glossary to demystify the legalese and help you understand the process better.
Jargon Buster: Your Guide to Will Terminology
Administrator – A person appointed by law to finalise your affairs if you die without leaving a will.
Beneficiary – Anyone who receives something from your will.
Bequest – Also known as a legacy, this refers to a gift in a will. Gifts can be:
- Pecuniary: A specific sum of money.
- Residuary: A percentage share of what remains after all other gifts have been made.
- Specific: A particular item or property.
Codicil – An addition or amendment to an existing will.
Estate – The total value of everything you own at your time of death, minus any outstanding commitments.
Executor – A person you appoint to ensure the wishes stated in your will are carried out.
Guardian – A person appointed by a parent to look after their children if the parent dies before the children reach adulthood.
Intestacy – The situation that occurs if you die without a valid will. The provisions for dealing with this are covered under the Administration of Estates Act 1955.
Inheritance Tax – A tax levied at 40% on the value of your estate over the first £325,000. If you own your house you also benefit from another £175,000 residential nil-rate band. Gifts to your spouse or a charity are exempt, and other reliefs (agricultural and business property) may be available.
Nil-rate Band – The portion of your estate that is not subject to inheritance tax. Currently set from £0 up to £325,000 per individual. There are ways to increase your nil-rate band, potentially reducing the amount of inheritance tax due.
Probate – The process of determining whether your will is valid. This involves applying to the court, combining the executor’s oath and the testator’s completed inheritance tax account.
Testator (male) and Testatrix (female) – The person making the will.
Trust – A provision in your will to manage part of your assets in a particular way after your death.
Seeking Professional Advice
If you wish to receive personalized advice on any of the content discussed, please get in touch with us at 028 3752 5400. We are happy to help you navigate the complexities of wills and estate planning. While we aim to provide accurate information, laws can change rapidly, so it’s always best to consult with your solicitor to ensure you are up to date.
