Glossary
Click on a term to learn it's meaning:
- Assets
- All and everything, including those jointly, owned by the deceased
- Beneficiary
- A person entitled to a share of an estate
- Bequest
- A gift made in a Will of cash or a specific item, not including property
- Capital Gains Tax
- More often referred to as CGT is the tax payable when selling an asset based on the amount of profit made
- Conveyancing
- The legal process undertaken in order to dispose of or acquire land and buildings
- Chattels
- Property other than real estate. Movable possessions which may be included in a sale, for example. furniture, curtains.
- Estate
- Everything owned and owed by a deceased person
- Executor
- The person or persons named in a will to administer the estate
- Grant of Probate
- Usually obtained by the executors appointed in the Will is the document issued by the Probate Registry in favour of the executor(s) allowing them to deal with the estate
- Income Tax
- Tax payable on income
- Inheritance Tax
- Often referred to as IHT is the tax payable to the government in respect of the estate and certain lifetime gifts after death
- Inheritance Tax Allowance
- The amount under which no Inheritance Tax is payable, currently being £325,000
- Inheritance Tax Threshold
- The amount over which Inheritance Tax becomes payable currently being £325,000
- Instrument of Variation
- A document varying a will or intestacy after death
- Intestate
- Meaning that the deceased had no Will
- Legacy
- A gift made in a Will
- Letters of Administration
- The authority made by the Probate Office to allow the dealing of an estate where there was no Will
- Liability
- A debt which must be settled by the estate. This could include mortgages and loans, Tax and funeral expenses.
- Nil Rate Band Discretionary Trust
- A trust created in a will to allow the holding of assets up to the Inheritance Tax Allowance
- Pecuniary Legacy
- A specific gift made in a Will. For example a sum of money or a specific item
- Probate
- The process by which an estate is administered
- Probate Office or Registry
- The body which deals with the Grant of Probate and other matters in relation to Probate
- Residue
- Often referred to as the Residuary Estate is the amount left after all specific gifts have been made and liabilities been discharged
- Residuary Legacy
- A gift under a Will relating to the estate after all Pecuniary Legacies have been discharged
- Stamp Duty Land Tax
- A tax paid by the buyer upon the transfer of property where the consideration exceeds £125,000
- Will
- The document laying out the deceased’s wishes
The Role of an Executor
If you have or will be appointed as an Executor under a Will then it is a role that carries a considerable amount of responsibility and personal liability.
Amongst a whole raft of tasks an executor will usually be obliged to undertake the following:
- Ensuring that all of the wishes detailed in the deceased's Will are performed
- Find out and record all the assets and liabilities of the Estate
- Source valuations of the assets at the time of death whether they are solely or jointly owned. This will include any business assets too
- Make sure all appropriate insurance policies do not expire and renew where necessary. Failure to do so could leave the executors personally liable - This will include property and vehicle insurance
- Complete all necessary tax returns for Inheritance Tax, Capital Gains Tax, Income Tax and Stamp Duty Land Tax
- Complete and submit an application for the Grant of Probate. This will require a personal interview at the Probate Court
- Seek confirmation from the tax office that the estate can be distributed
- Pay all the outstanding debts of the estate
- Prepare final accounts for the beneficiaries and distribute the Estate
- If any additional assets or liabilities are discovered after the Estate has been distributed the executors will still have to deal with these, even if it is many years afterwards.
As you can see there is a considerable amount of work required for most estates. The Executors' liability to deal with matters relating to the estate can last for up to 6 years.
