Making Sense of Wills – the Jargon…

11 Jul Making Sense of Wills – the Jargon…

When it comes to sorting out a Will, there’s an awful lot of jargon to try to make sense of.  Here are some of the most common terms you’ll come across, and what they actually mean.

Assets:  All the items you own that will pass under the terms of your Will; including property, cash, investments & personal possessions.

Attestation:  The signing and witnessing of a Will.

Beneficiary:  A person, group or organisation to whom you leave something in your Will.

Bequest:  The term for a gift that you have left to someone in your Will.  This might be a ‘specific bequest’; – an identifiable item eg “the car I own at the time of my death”, or a ‘general bequest’; – an instruction for something to be gifted out of the estate eg “the sum of £1,000”, or a ‘demonstrative bequest’; – a hybrid of the two, being a general bequest being satisfied from a particular fund eg “£2,000 from my ISA account”.

Codicil:  A document used to make amendments to an existing Will rather than redrafting the Will itself.  A codicil must be signed & witnessed in the same way as a Will.

Crown:  This is essentially the Government, and it is where your estate will go if you die without writing a Will and have no qualifying family members that survive you.

Estate:  This is the total of your assets after the deduction of any liabilities you owe at the time of your death, to be distributed by your Will.

Executor:  The person who is responsible for putting your estate through Probate, and ensuring your wishes are carried out as detailed in your Will. 

Guardian:  The person who appointed to take on ‘parental responsibility’ for your minor children until they reach the age of 18. 

Inheritance Tax: The tax which is paid on the portion of your estate which is above the tax-free threshold (known as the nil-rate band). Currently, this stands at £325,000 for individuals, though you can now pass on a further £100,000 (rising to £175,000 by 2020) if you are leaving your primary residence to ‘direct descendants’. 

Intestate:  This is when someone dies without leaving a Will. 

Legacy:   This is another word for a financial gift or bequest left in your Will.   

Probate:  This is the process to validate your Will is valid and gives the Executor the authority to ‘administer’ your estate (paying bills & distributing assets).   

Residue:  What is left of your estate after debts and taxes have been paid and bequests have been handed out to beneficiaries.   

Testator/Testatrix:  The person (male/female) who has made the Will   

Trust:  A private legal arrangement where the ownership of someone’s assets (which might include property, shares or cash) is transferred to appointed Trustees (usually two or more people or a professional) to look after and use to benefit another person (or group of people)

Trustees: The people appointed to manage a Trust.

Witness:  A Will must be signed in the presence of two witnesses, who must be present at the same time, and must then sign the Will themselves in the presence of the Testator/Testatrix.  They must be over 18, of sound mind, and not be a beneficiary of the Will or be married to one.

Heir Tight Wills helps clients put in place robust provisions and valid documents, to protect their loved ones and their assets both during their lifetime and after their death – and in plain English not legal jargon!  For a FREE Consultation to discuss writing or updating your Will & estate planning provisions, contact Rachael Rodgers on 0845 519 7585, or CONTACT US via email.