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
What is Probate?
Probate is the legal process of settling the estate of a deceased person, dealing specifically with all claims on the estate and distributing the property.
Obtaining the Grant of Probate is usually the responsibility of the executors appointed by the deceased in their Will, or in the absence of a Will the next of kin. Given that this is often a complex process many executors will appoint a firm such as Wills and Probate Countrywide to act as professional executors either in isolation or jointly with the executors appointed by the Will
The Basic Process - Once the Will has been located or it has been established that there is no Will, there are in effect three principal tasks to be completed, namely:
- To identify all of the deceased's assets and liabilities
- To obtain the Grant of Probate or Letters of Administration
- To realise the estate and distribute it appropriately
However in achieving these tasks a number of other factors need to be taken into account including the completion and filing of all court forms and attending court where necessary, obtaining up to date valuations of all assets and liabilities, completing the Inheritance Tax, Capital Gains Tax and Income Tax returns and lodging them appropriately and dealing with the sale of any land, property and chattels of the deceased.
It is important to note that it is a requirement of the Inland Revenue that any Inheritance Tax is paid within six months of the death of the deceased and prior to the distribution of the estate. Failure to do so will leave the executors personally liable to action.
