Glossary

Absolute interest An interest that the beneficiary is completely entitled to immediately, without any restrictions.
Abatement A reduction of the amount of legacies or debts or claims where an estate is insufficient to pay all in full. This is normally made pro rata.
Accumulation The retaining and re-investment of income.
Acquisition (probate value) The value at which either the personal representatives or the beneficiary acquires the assets.
Adeem/ademption Either the complete or partial extinction of a specific bequest as a result of the deceased having gifted, sold or otherwise disposed of it during his lifetime, other than by revocation.
Administration period The period between the date of death and the date of the close of administration.
Administrator The legal representatives of a deceased person who has died without a Will. They are usually the closest relatives of the deceased.
Advance Directive Specific instructions, prepared in advance, to direct a person's medical care if he/she becomes unable to do so in the future. This is sometimes referred to as a 'Living Will'.
Advancement, power of The power given to pay capital monies held in trust to or for the benefit of a beneficiary of the trust.
Affidavit/oath Written statement by a person called 'the Deponent', who signs it and swears or affirms to the truth of its contents.
Agreed value The probate value as formally agreed by HMRC where inheritance tax is payable.
Appointment, power of A power given by Will or deed to appoint a person or class of persons to inherit an interest.
Apportionment The division of income in proportionate shares between certain beneficiaries, calculated on a daily basis.
Appropriation The transfer of an asset, instead of its sale proceeds, on account of a legacy or share of residue.
Asset Any property, money or possessions that belonged to the deceased.
Attorney A person appointed by another to act in his place.
Beneficiary A person who receives money or other benefits from the Will.
Bequest A gift of chattels/assets in the Will.
Bond of caution A bond of caution applies in Scotland where there is no Will. It is a guarantor's agreement that the executor will carry out his or her duties correctly. You would normally get one from an insurance company. It insures against losses in the handling of the estate.
Call Demand upon the holder of partially paid shares to pay the balance.
Capital Gains Tax (CGT) CGT is a tax on capital 'gains'. If when you sell or give away an asset it has increased in value, you may be taxable on the profit ('gain').
Chose in action Right of action to recover a sum due, or an entitlement to an interest in an estate.
Chain of representation The legal system by which the personal representative of a sole or last surviving personal representative becomes the personal representative of that testator.
Clearance certificate/certificate of discharge A certificate now usually issued in letter format by HMRC releasing a person liable to inheritance tax from paying further.
Collateral next of kin A person who is descended from a common ancestor but through different lines.
Confirmation of the estate In Scotland, this is the legal document obtained from the Sheriff Court following a death. It is equivalent to the Grant of Probate obtained in England and Wales.
Disbursement A payment made to a third party.
Enduring Power of Attorney Lasting Power of Attorney replaced the Enduring Power of Attorney from 1st October 2007.
Estate All the assets and liabilities of a deceased person - such as property, shares, cash, savings and investments as well as outstanding debts.
Estate accounts Accounts recording the financial transactions during the administration period.
Estate in fee simple An absolute freehold interest.
Excepted estate An estate where no inheritance tax is due if certain criteria are fulfilled.
Executor A person appointed by a Will or codicil to administer the estate.
Exit charge A charge to inheritance tax which arises on distributions made out of a discretionary trust.
Gift A gratuitous transfer of money or assets.
Grant of Representation This is obtained from the Probate Registry (Sheriff Court in Scotland) following a death. The Grant will be made to the personal representatives where there is a Will and to the closest relatives where there is no Will. This document is called a Grant of Probate ('confirmation' in Scotland) where there is a Will and a Grant of Letters of Administration where there is no Will. A deceased person's estate can be dealt with once the Grant of Representation has been obtained.
HMRC Inheritance Tax The division of the Inland Revenue which deals with all aspects of inheritance tax, capital transfer tax and estate duty. Formerly known as the Capital Taxes office.
Inheritance tax (IHT) Inheritance tax may be payable on an estate when someone dies if the estate is worth more than the nil rate band (currently £325,000).
In-gather This is the term used in Scotland for the process of sending out the confirmation to claim all the assets that are due to the deceased's estate.
Income tax A tax based on the financial income of an individual.
Instrument of variation A document whereby the Will or intestacy provisions of a deceased person can be varied.
Intestacy The situation where a person dies without making a Will fully disposing of all his assets. The administration of 'intestate' estate is governed by the Administration of Estates Act 1925.
Issue Children, grandchildren or remoter lineal descendants.
Lasting Power of Attorney (LPA) Lasting Powers of Attorney enable you to set out your wishes in a legal document and to appoint trusted people as 'attorneys' to oversee them.
Legacy/bequest/devise A gift contained in a Will.
Letters of Administration If the deceased died 'intestate' i.e. leaving no Will, or if the Will is invalid for any reason, the Grant is called 'Letters of Administration'.
Letters of Administration with Will annexed If the deceased left a Will but did not appoint an Executor or if the named Executor is unable to carry out the duty then the Grant is called 'Letters of Administration with Will annexed'.
Nil rate band The value of assets which a deceased person can leave to friends or family without having to pay any inheritance tax.
Per capita A Latin phrase meaning 'by head'.
Per stirpes A Latin phrase meaning 'by branch'. The term is used in Wills to refer to each family branch of a group of beneficiaries to receive a share of an estate.
Personal chattels Essentially personal effects. Does not include any chattels used at death for business purposes and any money or securities for money.
Personal representative An executor or administrator.
Power of attorney Formal deed by which one person appoints another to act on his behalf or represent him.
Power reserved The power reserved by a named personal representative who declines to act as such to do so at a later date.
Probate The settlement of someone's financial and business affairs after their death.
Renouncing probate The act whereby a named personal representative signs a legal document which cancels his/her appointment from the start.
Residuary beneficiary The person entitled to the whole or part of the deceased's estate after the payment of all debts, funeral and testamentary expenses and legacies.
Residuary estate/residue assets What remains of the estate after payment of all debts, legacies and all taxes and expenses.
Specific legacy A particular part of a deceased's estate.
Testate Dying, leaving a Will
Testator Deceased who left a Will.
Trustee Person who is holding assets on trust.
Trustee of residue The person who the deceased gives all of their estate to, or the remainder after any gifts are paid.
Vested interest Right to immediate or future entitlement.
Will A legal document that states your wishes about what you want to happen to your assets when you die.

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