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
ABOUT WILLS
What is a Will and why make one?
In simple terms a Will can be described as “an individual’s legal declaration of how they want their property to be dealt with after their death”.
Without a valid and up-to-date Will you will have no say in what happens to your wealth.
Remember - under the law of England & Wales your spouse does not automatically inherit everything, and if you have an unmarried partner they will not be entitled to anything at all.
Even if you already have a Will, you should regularly review it as circumstances can change.
By making a Will you can:
- Appoint executors who you can trust
- Choose who benefits from your wealth
- Appoint guardians for any children you have who are under 18
- Lessen the burden of Inheritance Tax and care home fees
- Ensure that your family won’t have to deal with your estate under the rules of Intestacy
- With little effort and a relatively low cost, ensure peace of mind
What’s involved in making a Will?
We will usually meet you twice. In our first meeting we will take your instructions and give you general advice and guidance. At our next meeting we will supervise the signing of your Will ensuring that it is not invalidated by a minor error or omission.
Lifetime Power of Attorney
A Lifetime Power of Attorney (LPA) ensures that in the event that you can no longer make decisions for yourself, such as a stroke, dementia or unforeseen injury you can choose someone to do so who you know and trust.
Without an LPA your spouse would not have the legal ability to make decisions for you. In the absence of a LPA any such decisions would be made by the Public Guardianship Office, who will know nothing about you or your needs.
We will give you appropriate advice, draft the LPA and prepare the registration with the Public Guardianship Office ensuring that it can be used immediately.
The Public Guardianship Office requires a certificate from a professional such as a doctor, social worker or solicitor to confirm that you are freely agreeing to the LPA. We are able to give that certificate free of charge where we prepare the LPA for you.
Advance Decision
An Advance Decision is a relatively straightforward document which will only become effective if you are unable to participate in decisions about your medical care and two doctors are of the opinion that you are unlikely to recover from your condition.
Before you enter into an Advance Decision we strongly recommend that you discuss it with your doctor and then afterwards regularly review it.
Wills and Probate Countrywide will advise you on how best to ensure that your wishes are carried out at the appropriate time.
Severance of Tenancy
If you own a property jointly with someone else that will be either as Joint Tenants in Equity or as Tenants in Common.
As Joint Tenants in Equity the ownership of the property is undivided and irrespective of any Will or other legal declaration, will automatically pass to the joint owner upon death.
As Tenants in Common the ownership, whilst remaining joint, is specifically divided enabling you to have control over it. This is especially important when taking into account Inheritance Tax mitigation and the ability of the government to access the value of the property to cover the cost of long term Care fees.
Wills and Probate Countrywide is able, as part of our service, to advise and assist with severing the tenancy to maximise the benefits to you and your joint owners of the property.
Wealth management
Without adequate wealth management your assets could be used to fund long-term care fees or given to the government as inheritance tax.
At Wills and Probate Countrywide we assist you in ensuring that you and your family benefits and maximises their entitlement from your hard work and wealth.
You will get detailed and thorough advice on the mitigation of inheritance tax liability and care home fees, through our professional partners.
Where a simple solution can be achieved it will be. For example maximising the use of your Nil Rate Band within your Will with the creation of Flexible or Discretionary Trusts or securing a Severance of Tenancy.
We also provide more complex solutions. We can write pensions and life policies into trust - disposing of assets during your lifetime whilst still benefiting from them or disposing of assets in such a way as to reduce the Inheritance Tax liability.
We are also able to give detailed advice in relation to Capital Gains Tax, Income Tax, Business Property Relief and Agricultural Property Relief.
