Published on: 7th July 2025

Common Estate Planing Terms Explained

When considering your estate planning options you may find yourself bamboozled by the use of technical terms that you may well have heard before but don’t have a clue what they mean.

In an effort to dispel some of the mystery surrounding estate planning, the following is a rundown of the most commonly used terms along with a description of what they mean;

Will

A legal document that sets out how a person's assets (estate) should be distributed after their death.

Testator/Testatrix

The person (male/female) who makes a Will.

Executor

The individual(s) named in a Will, responsible for administering the estate and ensuring the wishes in the Will are followed.

Beneficary

A person or organisation who receives a gift or benefit from a Will or trust.

Intestacy

The condition of dying without a valid Will.  The estate is then distributed according to the Rules of Intestacy.

Letters of Administration

Legal authority granted to someone (usually next-of-kin) to deal with the estate of someone who died intestate.

Grant of Probate

A legal document issued by the Probate Registry confirming that the executor has authority to administer an estate.

Inheritance Tax (IHT)

A tax payable on the value of a deceased person’s estate above the tax-free nil-rate band. The standard rate is 40%.

Nil-Rate Band

The threshold up to which no inheritance tax is payable (currently £325,000 ~ subject to change and other allowances).

Trust

A legal arrangement where assets are held by trustees on behalf of beneficiaries.  Used for tax planning, asset protection, or safeguarding assets for minors.

Trustee

The individual or organisation responsible for managing a trust and carrying out its terms.

Lasting Power of Attorney (LPA)

A legal document appointing someone to make decisions on your behalf if you lose mental capacity.  There are two types of LPA;

• Property & Financial Affairs LPA
• Health & Welfare LPA

Deed of Variation

A legal document allowing beneficiaries (with their agreement) to change the distribution of a deceased person’s estate, usually for tax or personal reasons.

Residuary Estate

The distributable proportion of an estate after debts, taxes, and specific legacies have been paid.

If you would like to speak with one of our Consultants to discuss any of the issues raised in this article or any other Estate Planning topic please telephone 01732 868 190 or click here.

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If you wish to give instructions or require general information about our Wills, Lasting Powers of Attorney, or Trusts then we will carry out a telephone or Zoom appointment.

However, if you wish to give instructions to one of our Consultants and you feel that you can only do this at a Face to Face meeting then we are offering, at our Consultant’s discretion, a limited number of Face to Face appointments in most of the areas we normally cover. To see the areas we normally cover please click here.

To arrange an appointment please telephone 01732 868190 or click here.

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