When writing a Will, you may come across terminology which you are unfamiliar with. To make the process easier, at Blesma we’ve put together a list of the most frequently used terms you might hear if you’re writing your Will or deciding to leave a gift in your Will to charity.
Assets
Any property which has a value to the owner. This could be a monetary value or even something of sentimental value.
Beneficiary
A person, or organisation who benefits from a gift in a Will.
Bequest
This is a general term for any gift made in a Will.
Chattels
Any item of property that can by physically moved from one place to another. This could be the contents of a house, or a vehicle.
Codicil
A document that amends a Will. It is added to the original Will and must be executed in the same way as the original Will.
Conditional Legacy
A gift that is only given if specific conditions, set out in the Will are met at the time of death. An example could be, “If my son is married at the time of my death, my property should pass to him. If he is unmarried, it should go instead to my daughter”
Disbursement
Any payment made to a third party.
Estate
The total sum of all the assets left by someone after their death, minus any debts or liabilities.
Executor
The person named in Will to be responsible for the estate and carrying out the wishes of the deceased. There can be up to four executors named, they can be friends or family members, or even a solicitor, bank, trust or charity. Executors can also be beneficiaries.
Guardian
A person, or persons appointed to have physical custody of any children.
Inheritance Tax (IHT)
The tax which is payable on death, depending upon the value of the estate being left. Gifts to charity are exempt from IHT and could reduce an estate’s liability (a solicitor will be able to advise you on this).
Intestate
Where someone has died either without a Will, or where the Will is not valid.
Legacy
A gift of personal property. This term is more widely used to cover all types of gifts, including personal items, (a bequest), property, (a devise), personal items, or cash.
Legator
Someone who has a left a legacy (see above) in their Will.
Liabilities
Any financial obligations, such as taxes or debts which must be settled by the estate.
Mirror Will
This is where a married couple, or partners write almost identical Wills, to ‘mirror’ each other.
Pecuniary gift
A gift of a specified sum of money.
Pledge
To promise a gift before writing a Will. This is not legally binding until included in a Will.
Potentially exempt transfer (PET)
A gift that is exempt from Inheritance Tax, if the donor lives for another 7 years after making the gift.
Predeceased
A person who dies before the person who has made the Will.
Probate
The legal procedure where a Will is ‘proven’ (i.e. accepted as a valid, legal document that reflects accurately the last wishes of the deceased.) Once probate has been granted (In Scotland this is known as Confirmation of the Estate) the executor(s) can distribute the estate to the beneficiaries according to the terms of the Will.
Residuary gift
A gift made after all pecuniary gifts have been distributed, and other liabilities (see above) have been paid. Typically, this is where a percentage of the value of an estate given to a named beneficiary.
Reversionary Legacy ‘Life Interest Trust'
A type of gift allowing beneficiaries to benefit during their lifetimes. This could be the use of an asset such as a house or an income from investments or a rental property. After those beneficiaries have passed away other beneficiaries, such as a charity receive the asset.
Solicitor
A qualified member of the legal profession who can help to draw up a Will or even act as an Executor.
Specific Gift
A gift of a specific item or asset, e.g. property, jewellery, or even stocks or shares.
Testator/Testatrix
A person who has written a valid will that is in effect at the time of their death.
Trust
A legal entity which allows someone to benefit from an asset, without becoming the legal owner. (See Reversionary Legacy/Life Interest Trust above).
Trustee
People, or organisations who manage a trust on behalf of the beneficiaries.
Will
The legal document in which a person sets out what they wish to happen to their estate after their death.
Witness
The witness to your signature on your Will. Witnesses cannot be beneficiaries.
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