Making plans for the future can be emotional and stressful. We do not want the legal process and the wording we use to make the situation worse so we strive to keep legal jargon to a minimum. We appreciate you will come across terms you may not understand so we have tried to explain these as clearly as possible in the definitions below, so that you fully understand the process you are going through.
If you need further explanation then please do contact us.
The person (often a relative) approved by the Probate Registry to deal with the estate of someone who has died without making a Will.
When determining the value of an estate’s assets and how much inheritance tax is due you, or your executors may be able to claim Agricultural Property Relief which reduces the value of agricultural land or pasture by either 100% or 50% so long as it was occupied by the owner for the purposes of agricultural for at least two years up to the transfer/death; or, in the case of tenanted land it was owned for at least seven years up to the transfer/death and used for agricultural purposes during that time. Farm buildings, the farm house and woodland can also qualify subject to certain conditions.
The following assets do not qualify for agricultural property relief :
- farm equipment and machinery
- harvested crops
- derelict buildings that is, buildings no longer capable of being used for agricultural purposes
- property for sale for which contracts have been exchanged
Items of monetary value which can include land, buildings, bank accounts and investments as well as personal items like furniture and jewellery.
The beneficiary of such a trust can demand the trustee hands over the assets at any time provided the beneficiary is over 18.
The income and capital belong to the beneficiary and once they are adults they are responsible for declaring this on their Self-Assessment tax returns.
The person or organisation (for example a charity) who will receive money or property under the terms of a Will.
When determining the value of an estate’s assets and how much inheritance tax is due you, or your executors may be able to claim Business Property Relief which reduces the value of a business or its assets by either 100% or 50% so long as the business or asset is was held for more than two years from the date of transfer.
The relief can be claimed when assets are transferred during your lifetime or under your will.
Business Property Relief can be claimed at 100% on:
- a business or interest in a business
- shares in an unlisted company
Business Property Relief can be claimed at 50% on:
- shares controlling more than 50% of the voting rights in a listed company
- land, buildings or machinery owned by the deceased and used in a business they were a partner in or controlled
- land, buildings or machinery used in the business and held in a trust that it has the right to benefit from
The business must be ‘wholly or mainly’ trading to qualify. It has been established that at least 50% of the businesses assets must involve trading, in determining this turnover, profits and asset base may be considered individually, but the business will be assessed as a whole.
The law determines which purposes are charitable for trust and tax purposes. A charitable trustee must only use the income and capital for the purposes set out in the charity trust deed.
These trusts differ from non-charitable trusts in that they may be run in perpetuity.
The Court responsible for protecting and overseeing the interests of people who are unable to do so for themselves and who have not made a Lasting Power of Attorney.
A person or company owed money by the person who has died and which must be paid from the Estate.
The person formally approved by the Court of Protection to look after the affairs of a person who can no longer do so themselves, where they have not made a Lasting Power of Attorney.