Kings Court Trust Corporation

Glossary

Abatement

A proportional reduction applied where the estate had insufficient assets to pay beneficiarie or creditors in full.

Ademption

A gift or property mentioned in a will that cannot be given to the beneficiary because it no longer belonged to the deceased.

Administration

Managing the affairs of the deceased. This involves establishing, collecting and distributing the assets of the estate as stated in the Will or, where there is no Will, according to the intestacy rules.

Administration period

The time it takes from the date of death to completion of the estate’s administration.

Administrator

Someone who is appointed by law to settle your affairs if you die without leaving a will, or if the named executor does not wish to act.

Affidavit

A written statement, confirmed by oath, for use as evidence in court.

Assets

Everything owned by the deceased.

Attestation

Witnessing a signature.

Beneficiary

Someone entitled to a share on the estate.

Bequest

A gift of a particular object or cash as opposed to land or buildings.

Capital Gains Tax

or CGT, a tax on the profit made when selling an asset. Each person has an annual CGT allowance for tax free profits.

Chargeable gift

An item given in a will on which tax may have to be paid.

Chattels

Any movable personal property not used for business. For example, TV, sofa, cooker, jewellery, wine, pictures, even cars and horses.

Children

Children, this covers all legitimate and illegitimate children and legally adopted children. It does not include stepchildren.

Co-habitee

A partner of the deceased who may be able to claim a share of the estate.  The term ‘common law wife’ has no legal force.

Codicil

An addition or change made to your will.  It has to be signed and witnessed in the same way as your will.

Coroner

A doctor or lawyer responsible for investigating deaths in the following situations:

• The deceased was not attended by a doctor during the last illness or the doctor treating the deceased had not seen him or her either after death or within the 14 days before death.
• The death was violent or unnatural or occurred under suspicious circumstances.
• The cause of death is not known or is uncertain.
• The death occurred while the patient was undergoing an operation or did not recover from the anaesthetic.
• The death was caused by an industrial disease.
• The death occurred in a prison or in police custody.

De facto

Usually used when referring to the common law spouse as a de facto wife or the de facto husband.  Not legally married, but living together as if married, the common law couple do not share the same rights as a married couple.

Deposition

The official statement by a witness taken in writing as opposed to taken verbally.

Devise

Land or buildings

Discretionary trust

A trust where the trustee has full power to decide when and which members of a group of beneficiaries are to receive their capital.

Estate

The property, money and possessions of a deceased person.

Executor

The person appointed in a will to administer an estate.

Grant of Letters of Administration

The legal document issued by the Probate Registry, appointing an administrator to deal with the estate. This is issued when there is a will but no executor named, where the executors are unable to apply, where they do not wish to be involved in dealing with the estate, where the deceased has not made a will or any will made is not valid.

Grant of Probate

Normally only obtainable by the executors of a valid will. It is a legal document issued by the Probate Registry to the executors, authorising them to deal with the estate.

Grant of Representation

An order of the High Court when a Grant of Probate or a Grant of Administration is obtained, and the Personal Representative is free to administer and distribute the estate.

Guardians

The people chosen by the testator to look after their children in the event of their death.

Income tax

Tax payable in income. An income tax return must be prepared and submitted for the deceased for the year in which they died and any tax due must be paid before the distribution of the estate.

Inheritance tax

Or IHT, the tax which is payable on your estate and on certain lifetime gifts after you die.

Inquest

A public enquiry, held by a coroner, into the medical cause and circumstance of a death.

Instrument of Variation

A document which varies a will or the provisions of intestacy after a person has died.

Interest

The right to property.

Intestacy

The name for the situation which arises when someone dies without making a Will.

Their estate is then distributed according to the laws governing intestacy. - HM Revenue and Customs on intestacy >>

Intestate

A death where there is no legally valid will.

Issue

All your “living” direct bloodline descendents.

Joint tenancy

Property owned by 2 or more people.  Joint tenants are usually husband and wife and in the event of the death of one tenant, the other becomes the owner of the whole property.  A joint tenant cannot make a gift of their share of the property to anyone else as it is not theirs to give.

Legacy

A gift left in a will, other than houses or land.  There are three common types of legacies:

• A specific legacy is simply a specific property or object
• A pecuniary legacy is a gift of a specific sum of money
• A residuary legacy is a gift of the money or assets left over when all other legacies and expenses have been paid

Liabilities

The debts that need to be settled by the estate following the death of the deceased e.g. household and general bills, funeral expenses, outstanding income tax.

Living will

Sometimes known as an "advance directive" is a document containing instructions to medical personnel to allow them to stop prolonging your life in the event of you becoming terminally ill, permanently unconscious or losing your mental capacity.  Some people decide they do not want to be kept alive in such an event by either artificial means or medical treatment. Living wills cannot necessarily be enforced by law.

Next of kin

The nearest blood relative of the deceased.

Nil Rate Band Allowance

The amount that can be passed to beneficiaries without paying Inheritance Tax. For 2006/2007, this is £285,000.

Nil rate band trust

Also called a nil rate band discretionary trust. A trust usually created by a will, designed to hold assets up to the amount inheritance tax allowance.

Oath

A pledge to tell the truth often calling upon God as a witness.

Personal Representative

Someone entitled to deal with the deceased's estate.

Post mortem

Where there is no certifiable reason for a person’s death, doctors may ask relatives for permission to carry out a post-mortem which is a medical examination of the body to determine the cause of death. It should not delay the funeral.

Probate

The process of administration of an estate up to and including obtaining the Grant of Probate.

Probate Registry

A court within the family division of the High Court. Responsible for making sure that the will is valid and the applicant is entitled to handle the estate.

Registrar

The person who registers the death.  By law, every death must be registered by the Registrar of Births, Deaths and Marriages for the sub-district in which it occurred.

Find Probate Registries>>

Residuary Beneficiary

Any person entitled to receive a share of any residue of the estate, under the terms of the Will or on intestacy.

Residue

What's left after the money legacies, specific gifts, funeral expenses, IHT, including bank accounts and insurance policies.

Revocation

When the testator decides to change their will completely and invalidates the previous one, they are deemed to have revoked their will.

Social Fund

Ppart of the Social Security system which may provide help with the cost of a funeral, depending on circumstances.

Specific Gifts

Gifts you want left to specific people such as your pet cat to a specific individual you know would be able to look after it.

Spouse

When using terms such as "husband" and "wife", it is important to consider that this refers to your husband or wife at the time a will was written.  If you are going through a divorce, your spouse remains your husband or wife until you receive your decree absolute.

Stamp Duty Land Tax

A tax on land transfers paid by the buyer. It is currently paid on transfers of over £125,000

Tenants in common

Property is owned jointly but each joint owner has a distinct share which forms part of their estate on death and does not pass automatically to the surviving tenant(s).

Testator

The person who actually sets out his wishes and requests as to how their estate should be divided in the form of a will. A Testator must be over 18 years of age and of sound mind at the time of making the will.

Testatrix

A female testator.

Trust

An arrangement set up by will or deed.  Trustees are appointed and given money or assets to hold and manage for defined beneficiaries.

Trustee

Holds any assets until nominated beneficiaries meet certain criteria set out in the will e.g. they reach the age of 18.  Trustees normally have powers to distribute monies and have full power to sell and invest.

Witnesses

A will is always subject to two witnesses having verified the signature of the testator.  They have to sign the will at the same time as each other and also at the same time as the testator.