glossary of terms

Legal jargon explained

Administration

The collection of the estate assets, payment of the estate debts and distribution of the surplus to the beneficiaries of the estate.

 

Administrator

The person(s) who deal with the administration of the estate of a person who dies without a will.

 

Beneficiary

A person or organisation which receives property, or gets some benefit from a will, intestacy or trust.

 

Codicil

A document signed and executed which cancels, amends or adds something to a will.

 

Estate

The assets of a person including property, cash etc whether held in their sole name or jointly and also rights and benefits held in trust or nominated.

 

Executor

The person(s) appointed by the deceased to carry out his/her wishes in their will.

 

Gift with Reservation of Benefit

The gift of an asset made by a person during their lifetime which fails for inheritance tax purposes because that person did not give up all the benefits connected with the asset so it is taxed on that person’s death as though the asset had never been given away in the first place.

 

Grant of Representation

A generic term for Probate and Letters of Administration of a deceased person’s estate.

 

Grant of Letters of Administration

The legal authority required by the person dealing with a deceased person’s estate where there is no will, or where a will is found to be invalid.

 

Grant of Probate

The legal authority required by the person dealing with a deceased person’s estate where there is a will.

 

Immediate Post Death Interest

An interest in possession trust (see below) created on death by a person’s will or the intestacy rules.

 

Inheritance Tax

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

 

Interest in Possession Trust

A particular type of trust where a beneficiary (known as the life tenant) receives all the income generated by the trust assets for their lifetime and on their death the capital trust assets then pass to other beneficiaries (known as remaindermen).

 

Intestate

A person who dies without leaving a will or fully disposing of their estate by will.

 

Intestacy

A person’s estate where they died intestate.

 

Joint Property

An asset which is jointly owned by two or more people either as joint tenants or as tenants in common.

 

Joint Tenants

Where the joint owners have an identical interest in the property and on the death of one owner, their interest passes to the remaining owner(s) by survivorship regardless of what their will or the intestacy rules say.

 

Legal Personal Representative

A person to whom a grant of probate or letters of administration has been issued.

 

Legatee

A person (beneficiary) to whom either a cash legacy or a specific gift is given by will.

 

Letters of Administration

The legal authority to someone interested in the estate of a person who has died without leaving a will to administer their estate.

 

Probate

The legal recognition of the validity of a will and the executors’ entitlement to administer the estate.

 

Residue

The term for the portion of the estate left after payment of the estate liabilities including debts, legacies, taxes and estate administration expenses.

 

Tenants in Common

Joint ownership of property where each joint tenant owns a defined share in the property and on their death, their respective share passes to their beneficiaries by their will or by intestacy.

 

Testator

A man who has made a will.

 

Testatrix

A woman who has made a will.

 

Trust

Property legally entrusted to a person with instruction to hold and use if for another person's benefit.

 

Trustee

The person who holds or administers property in a trust for another, called the beneficiary.

 

Will

A legal document detailing a person’s intentions to distribute his/her estate and assets on death.