Legal Jargon Explained

Administrator

A person (usually the next of kin) who is authorised by the Court to deal with the assets and liabilities of a deceased person if there is no Will.

Administration

The process of collecting in the deceased person’s assets, settling the deceased person’s liabilities and distributing the balance in accordance with the Will or if there is no Will in accordance with the rules of intestacy.

Assent

The transfer of ownership of an asset (particularly land or buildings) by those administering the estate to a beneficiary.

Attorney

A person given authority in a person’s lifetime to deal with another person’s affairs.

Beneficiary

A person who is to receive a benefit under a Will or lifetime trust arrangement. A beneficiary and certain other persons cannot benefit from a Will where they have acted as witnesses to the testator signing it.

Chattel

Broadly speaking an item of household use of ornament, and personal belongings of the deceased, including cars, jewellery etc [there is a specific statutory definition of “chattel”].

Discretionary Trust

An arrangement made by a person (either during his/her lifetime or in a Will) whereby cash or assets are given to two or more Trustees to look after for the potential benefit of a number of beneficiaries and with the Trustees having discretion over any distribution of the trust funds.

Enduring or Lasting Power of Attorney

A particular form of written authority given by a person whilst mentally capable authorising another or others to deal with his/her financial affairs.

A separate Lasting Power of Attorney can made by one person giving authority to another to take welfare decisions on his behalf should he ever lack the capacity to make such decisions).

Estate

Broadly speaking the cash and assets owned in the sole name of a person which will pass under the terms of his Will (or in the absence of a Will under the rules of intestacy).

Executor

A person who is authorised by the Will of a deceased person to deal with his assets and liabilities and to distribute the net estate in accordance with the Will. There must be at least one but no more that four executors of a Will. A beneficiary under the Will can be an executor.

Financial Dependant

A person who at the time of death of a deceased person is being financially supported by the deceased person, or who should morally be financially supported by the deceased person e.g. a spouse, former spouse, children under the age of 18 years or children who are mentally or physically disabled.

Grant of Letters of Administration

Where there is no Will, the document issued by the Probate Court to a person or persons entitled to deal with the assets of the deceased person.

Grant of Probate

Where there is a Will, the document issued by the Probate Court to the Executor(s) named in the Will as evidence that the deceased left a valid Will and of the Executor(s) authority to deal with the deceased persons assets.

Inheritance Tax

A tax payable on the death of a person (and on some lifetime gifts).

Inheritance Tax Threshold

The aggregate value of assets below which inheritance tax is effectively not payable, currently £325,000.00.

Intestacy

The situation which arises when a person dies without leaving a valid Will in which case the estate must be distributed in accordance with strict statutory rules.

Joint Tenancy

The holding of an asset such as a house in the names of two or more persons. An asset held as joint tenants will pass on the death of one co-owner automatically to the surviving co-owner(s) (rather than under the terms of the deceased’s Will or under the rules of intestacy which apply where there is no Will).

Nil-Rate Band

The value of assets between £nil and £325,000.00 passing on death or gifted within the 7 years prior to death which is chargeable to Inheritance Tax at 0%.

Predeceased

The fact of having died or being assumed in law to have died before the deceased person.

Residue

The value remaining in a deceased person’s estate after all costs and liabilities have been met and any particular gifts in the Will have been paid out.

Specific Legacy

A bequest of a particular asset owned by the deceased at the time of death.

Tenants in Common

It is possible for assets to be co-owned as ‘tenants in common’ in which case each co-owner is treated as having a specific share in the asset which will pass as part of his estate under the terms of his or her Will or under the rules of intestacy if there is no Will.

Testamentary Guardian

A person chosen by a deceased person to whom parental responsibility for a minor child or children of the deceased would pass (if no other individuals with parental responsibility for the child or children are then living).

Testator/Testatrix

A deceased person who has made a valid Will.

Trustee

A person who holds cash or assets for the benefit of one or more others.