Gift in Wills jargon buster
Administrator –Those appointed to administer the estate if there is no Will or executor,
Assets – These are things that you own that are worth money. They could be your house, savings or shares. They could also be smaller items, such as jewellery or paintings.
Beneficiary – A person or organisation (such as a charity) who receives a gift from a Will.
Bequest – A gift in a Will.
Chattels – Personal items such as jewellery, antiques, car.
Codicil – A document that acts as an amendment to the Will (instead of rewriting it), which is signed and witnessed in the same way as a Will.
Conditional Legacy – A specific condition has to be met for the gift to take effect.
Deed of Variation – A legal document that can change a person’s Will after they have died.
Estate – The total value of everything owned.
Executor – The person named in a Will who administers the estate, ensuring they adhere to the testator’s wishes. This can be a friend, family member or solicitor.
Inheritance Tax (IHT) – Tax payable on the value of an estate above the Nil Rate Band (NRB). There may also be IHT payable on some lifetime gifts. IHT can be complex, so we recommend seeking professional guidance.
Intestate/Intestacy – When someone dies without making a Will. The law will decide how their estate is distributed under intestacy rules.
Legacy – This is a gift of assets (such as money or property) in a Will.
Legator – Person who has left a legacy in their Will.
Letters of Administration – Legal document that authorises an executor to administer an estate.
Liabilities – Financial costs such as tax and expenses which are payable from an estate.
Mirror Wills – These are 2 separate Wills that have the same wishes within both.
Mutual Wills - These are 2 separate Wills that have the same wishes within both. However, this type of Will cannot be altered after 1 person dies.
Nil Rate Band – This is the amount of money which can be paid from an estate without Inheritance Tax being payable. It is also possible to transfer any unused NRB from a deceased spouse. We recommend seeking professional guidance.
Personal representative – Person responsible for administering an estate.
Pecuniary – Gift of money of any size.
Power of Attorney – Written authorisation for 1 or more people to act on another’s behalf. This can be for health and welfare or financial affairs.
Probate – When a Will is proven in court and accepted as a valid document.
Residuary – The remainder of an estate after taxes and/or debts have been paid and all other gifts distributed.
Specific Gift – Specific items or group of items which can be sold for the purpose of raising funds.
Testator – Person who has written the Will.
Trust – Assets are held for a person/people to benefit from without them being the legal owner.
Trustee – Person or organisation empowered to administer assets held within trust.
Will – Legal document containing a person’s wishes for after they have died.