Legal Jargon

The document issued by the Probate Registry giving formal approval for representatives to deal with the estate of a person who has died intestate i.e. without leaving a will detailing how they wish their estate to be disposed of.

Someone entitled to a fixed gift – a specific amount of money or item(s) of property under the terms of a will.

A document appointing a person of your choice (the attorney) to deal with either your property and financial affairs or your health and welfare decisions when you are no longer capable of doing so, or at a time when you give permission for your attorneys to act.

If a person dies without making a will their estate is distributed in accordance with the Intestacy Rules. Intestacy is administratively burdensome and can lead to significant delays and expense in the settlement of a person’s estate. It may also mean that a person’s estate is not settled in the way that they might have wanted and should, therefore, be avoided if at all possible.

Sometimes known as Life Interest Trusts, this type of trust is commonly used to ensure a spouse has a home and income for life while ensuring the underlying capital is preserved for the children.

All income must be paid to the beneficiary and they normally have no right to the capital. This type of beneficiary is called the Life Tenant.

The tax, currently charged at 40%, that is due when the value of an estate exceeds the threshold for tax free inheritance set by the government. Estates passing between spouses are not subject to IHT.

The Inheritance (Provision for Family and Dependants) Act 1975 enables certain classes of people to make a claim against the estate of the deceased if they feel the deceased’s will does not make sufficient provision for them, or if the deceased died without leaving a will. In these circumstances, a person can make a claim under the Inheritance Act for a financial award from the deceased’s estate.

To bring a claim, a person must be one of the following:

– the spouse / civil partner of the deceased;
– the former spouse / civil partner of the deceased who has not remarried or entered into a further civil partnership;
– living with the deceased for at least two years prior to their death;
– the deceased’s child (which includes an adult child);
– treated as the deceased’s child, including but not limited to someone who was adopted by, fostered by or a step-child of the deceased; or
– being ‘maintained’ by the deceased.

With the exception of a spouse or civil partner, a claimant is only entitled to sufficient financial provision as required for their maintenance.

The document issued by the Probate Registry that gives formal authority for the executors to act in dealing with an estate when someone dies. It gives them the authority to access bank accounts, settle debts, sell assets and distribute the deceased’s estate to their beneficiaries in accordance with the will.

A gift that is deemed as not being fully given away because the person giving the gift has retained some benefit. For example, a person gives a house to their adult children but continues to live in the property rent free.

The person or persons appointed in a will to deal with the administration of a deceased person’s estate. This could involve dealing with the deceased’s bank account, selling properties and distributing money to the beneficiaries named in the will.