Private Client Glossary:

Navigating the world of estate planning and Will drafting can be complex, especially if you’re not familiar with the terminology used. Aston Bond has created a Private Client Glossary to serve as a practical reference, providing clear and concise definitions of key terms.

Administrator – The person/people responsible for dealing with the administration of the estate when there is no Will. This is determined by the rules of intestacy.

Attorney – A person authorised to act on another person’s behalf.

Assets – Property, money, or other items that become part of a person’s estate after they die.

Beneficiary – Someone who receives property or other benefits from a deceased person or trust.

Codicil – A legal document that amends or adds to a Will without replacing it.

Contentious Estate – A legal dispute over the distribution of a deceased person’s assets or the validity of their Will.

Contingent Gift – (AKA Conditional Gift) Is a gift in a Will that only takes effect if a certain condition is met:

• The primary beneficiary / beneficiaries do not survive the testator.
• A specific event happens, such as the beneficiary reaching a certain age.
• The beneficiary takes a specific action, such as passing a driving test.

Court of Protection – A specialist court in the UK that makes decisions for people who lack the mental capacity to make them for themselves. The Court of Protection can:

• Make decisions about a person’s property and finances.
• Make decisions about a person’s health and welfare.
• Appoint a deputy to make decisions on behalf of the person.
• Make decisions around Lasting Power of Attorney.

Deceased – The person who has died.

Deed of Variation – A legal document that allows beneficiaries to change a Will or intestacy rules after someone passes away.

Deputy – Someone who is legally appointment to make decisions on behalf of another person who has lost the mental capacity to do so themselves.

Disclaimer – The refusal of a gift under a Will.

Discretionary Trust – A flexible trust where the beneficiaries and their entitlements to the trust fund are not fixed but are determined by the Trustees.

Donor – The person who creates an LPA.

Estate – All the money, property and assets owned by a person.

Executor – The person / people named in a Will who is responsible for dealing with the administration of the estate.

Excepted Estate – An estate where the Personal Representative, either an Executor or Administrator, handling the estate after someone’s death doesn’t need to file a full Inheritance Tax (IHT) account with HM Revenue & Customs (HMRC) due to the value of the estate and available allowances.

Grant of Probate – A legal document which confirms that the Executors of a Will have the authority to deal with the deceased’s assets. This will be required to sell the deceased’s property as some financial organisations require this to encash the funds, depending on the amount of money held in the account.

Grant of Letters of Administration – As above, but when there is no Will. It confirms that the administrators have authority to deal with the estate.

Grant of Representation – A blanket term for Grant of Probate or Grant Letters of Administration.

Guardian – Someone who is given parental responsibility over a child under the age of 18.

Inheritance Tax (IHT) – Tax on the estate of someone who has died.

Interstate – A person who has died without having a Will in place.

Intestacy Rules – Decides how an estate will be distributed when an individual dies interstate.

Lasting Power of Attorney (LPA) – A document that allows you to appoint one or more people to make decisions on your behalf.

Legacy – A gift of a specified asset or sum that is given to an individual under the terms of a Will.

Legatee – The recipient of a legacy.

Letter of Wishes – A confidential document that provides guidance on how you want your assets and estate to be managed after you die. It is not legally binding and can be changed or revoked at any time. A Letter of Wishes can include:

• Instructions for your funeral.
• Advice for guardians on raising your children.
• How you want your personal items distributed.
• Details about your beneficiaries.
• Guidance on how to manage your money.

Letter of Administration – A document which confirms legal authority to act in dealing with the administration of a deceased’s estate of someone who has died without making a Will.

Life Interest Trust – Gives the beneficiary a right to benefit from something for their lifetime.

Mirror Wills – Two people’s Wills where the terms mirror each other.

Nil Rate Band – The threshold for an estate which can be passed on death above which Inheritance Tax is payable.

Personal Representative – A blanket term for Administrator or Executor.

Renounce – When a proposed executor of a Will declines to accept their appointment.

Residue – The remainder of the estate after all legacies, liabilities, tax, costs, and disbursements have been paid.

Settlor – The person who creates a Trust.

Trust – A legal arrangement that allows a person to transfer their assets to be held and managed for the benefit of another person/people.

Trustee – The person/people appointed who manage the assets held in trust.

Will – A legal document which sets our how a person wants their assets distributed and dealt with following their death.

Please do not hesitate to contact our experienced Private Client team on 01753 486 777.