Gifts in wills glossary

The legal language used when dealing with wills can often be complex. We have broken down some of the most common terms you are likely to come across.

Administrator

The person/people appointed to administer an estate where there is no will or executor.

Asset

A single part of your estate, for example, a car or a house.

Beneficiary

These are people or organisations who will benefit from your will in some way – maybe with a cash gift, objects you own or a share of your estate. A beneficiary of your will cannot also witness your will for you.

Bequest

A gift made in a will.

Chattels

An item or personal possession which can be moved such as your car, jewellery, paintings.

Codicil

A document that may change or add to a will. A codicil must adhere to the same legal requirements as your original will. Additionally, it must be signed by two witnesses who do not benefit from the will in any way.

Conditional legacy

A legacy gift which only takes effect if a specific condition is met upon death.

Deed of variation

A document that can change how an estate is divided up after you have died.

Estate

Your property and assets. This includes any property, cash, bank and savings accounts, stocks and shares, and all your valuables and possessions.

Executor

The individuals you have appointed to carry out the instructions left in your will.

We suggest that it would be wise for you to consider choosing a trusted family member, friend, solicitor or professional adviser to be appointed as your executor in your will, as these individuals will have personal knowledge about your circumstances and will be better placed to ensure that your wishes are carried out as you intend at the appropriate time.

If these individuals die before you, you should update your will and appoint new people to take on this role.

Estate

Your property and assets. This includes any property, cash, bank and savings accounts, stocks and shares, and all your valuables and possessions.

Inheritance tax (IHT)

A tax on the value of your estate after death.

Inheritance tax is 36% instead of 40% on the estate for anyone leaving 10% or more of their taxable estate to charity, and all charity gifts are tax-exempt. The threshold at which inheritance tax is payable changes over time, so we suggest you find out more on the HMRC website.

Intestacy

When a person dies without leaving a will. When this occurs, intestacy rules decide who your estate will pass to, as well as who can deal with your estate in the absence of a will.

Legacies

A gift left within a will to an organisation or individual. There are different types of legacy, including pecuniary, residuary, specific and life interest gifts or legacies.

Legator

Someone who has left a legacy in their will.

Letters of administration

The official document issued by the court empowering an executor to deal with the estate.

Liabilities

Financial obligations which need to be settled from an estate after death.

Letters of administration

The official document issued by the court empowering an executor to deal with the estate.

Life interest gift/trust fund

A gift given to someone for the remainder of their life, e.g. a spouse who may continue to live in the property after the original owner has died. After the beneficiary has died, the gift is then passed onto a second beneficiary specified in the will, such as a charity.

Memorandum of appropriation

This is when the beneficiaries of an estate use their power to pass ownership of an asset, for example, to a charity before a sale takes place (to mitigate Capital Gains Tax).

Mirror wills

This is when two wills are almost identical, for example each person leaving everything to each other if one should die (or to another agreed beneficiary if they die together).

Nil rate band (NRB)

The Inheritance Tax nil rate band is the amount of your estate which can be passed on to your beneficiaries free from inheritance tax after death.

Personal representative

The person responsible for administering the estate of the person that has died.

Pecuniary

A gift of a specific amount of money, e.g. £10,000.

Power of Attorney

A lasting power of attorney is a legal document that enables you to appoint one or more people to make decisions on your behalf. This gives you more control over what happens to you if you have an accident or an illness and cannot make your own decisions. Powers of Attorney can relate to your ‘health and welfare’ and/or ‘property and financial affairs.

Probate

The legal process during which a will is proven in court and accepted as a valid public document. It is usually one of the first steps in the legal process of administering the estate.

Residuary

The 'residue' of an estate is everything left over after all debts, bills and taxes have been paid and all gifts in the will have been distributed. Leaving the residue of an estate to a named beneficiary is called a 'residuary gift'.

Specific gift

An object, such as a house, shares in a company or other personal belongings such as jewellery and items of furniture.

Testator

This is the person who writes a will.

Trust

A legal entity that allows someone to benefit from an asset without being the legal owner.

Trustee

The people or organisations named in a will to manage any trust which has been set up.

Will

The formal document that contains your wishes regarding what happens to your estate when you die.

Witness to a will

For your will to be valid, it must be:

Signed by you in the presence of 2 witnesses. These must be two independent people over the age of 18, who do not benefit from your will nor do their legal partners.
Signed by your 2 witnesses in your presence.

Gifts in wills glossary

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