Glossary

There are lots of legal terms used when writing a will and we prefer to avoid terms that most people are not familiar with. However solicitors probably will use the following terms:

Assets and Liabilities - Assets are your home, property, car, household and personal effects, cash, savings, stocks and shares, insurance policies and other benefits (e.g. pensions).

Liabilities include any outstanding mortgages, loans and debts and are taken off the value of your assets to work out the value of your estate.

Beneficiary - A person or organisation that will receive a gift in your will.

Bequest- A gift left in your will which can be in the form of money, property, stocks and share or possessions.

There are several types of gifts you can leave:

• A residuary gift- This is the amount left over after all your other wishes have been carried out and expenses relating to your estate have been paid. You can either leave all of the residue or a percentage share.
• A pecuniary gift - This is a specific sum of money otherwise known as a cash or monetary gift.
• A specific gift - You may have a particular item that you would like to give, such as a piece of jewellery or an antique.
• A conditional gift - A gift which would be made if the person you first intended to benefit died before you.
• A reversionary gift - A gift of property or possessions left to someone for the rest of their life, which is then passed onto someone else.

Codicil - This is an appendix to a will used to make a simple change.

Deed of Variation - A way that beneficiaries of a will can alter the distribution of an estate after the testator has passed away (for example to benefit a charity or alter it for purposes of taxation).

Estate - This is the sum of all your possessions, property, money and liabilities at the time of death.

Executor - A person, chosen by you, who will carry out the instructions written in your will.

Inheritance Tax - If the value of your estate is over £325,000 (2010-11 tax year), then you may be liable to pay Inheritance Tax at the current rate of 40%. Tax is only calculated on anything above the rate of £325,000.

There are several ways to avoid paying Inheritance Tax, such as leaving a gift to charity. For more information visit the HM Revenue & Customs website

Intestate - If you die without a valid will you are said to die intestate. The only way to guarantee your wishes will be followed is to have an up-to-date and valid will. If you die intestate, rather than following your wishes, your property is inherited according to a strict set of rules known as intestacy rules.

The best way to avoid this is to use a solicitor and to keep your will up-to-date.

Legacy - This is another word for bequest, better referred to as a gift in your Will.

Probate - This is the legal procedure after death which confirms if a will is valid and confirms the executor's authority to carry out your wishes.

Testator - A person who has made a will is sometimes referred to as a testator.

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