Published on: 29th August 2017

Terminology used in Will Writing, Estate Planning & Trusts

Assets: physical property, such as a building, vehicle or money in a bank account that have a monetary value. Attorney: somebody appointed to assist with an individual's (donor's) financial or health affairs whilst the donor is still alive. Attestation: the process of signing your Will in the presence of two witnesses. Beneficiary: a person who benefits from a Will or a Trust. Donor: a person creating a Lasting Power of Attorney. Estate: everything a person owns when they pass away, including chattels (not just land and property). Executor: the person who carries out the wishes and instructions of the testator (a female executor used to be called an executrix). Guardian: someone to look after the interests of children under the age of 18. Inheritance Tax: tax paid on a person's estate after they pass away, providing the total value is above the inheritance tax threshold. To find out more about inheritance tax, please click here. Intestacy: when someone passes away without having a legally valid Will in place. This may be because they did not create one or they had one but it was not signed correctly. If this is the case, the estate will be administered according to the laws of intestacy. To find out more about passing away intestate please click here. Issue: the children or other lineal descendants of a person. Legacy: a gift left to someone in a Will (usually not referring to land). Memorandum of Wishes: letter to executors and trustees listing specific gifts usually of sentimental value, such as family photographs. Mirror Wills: Wills that reflect two testator's wishes with similar distribution. For more information, please click here. Mutual Wills: Wills that form a contract between two testators. For more information, please click here. Nil rate band allowance: currently set at £325,000-00p - this is the allowance below which assets in the estate are taxed at the nil rate of 0%. Personal Chattels: tangible goods (goods that can be touched i.e. furniture or jewellery). Per Stirpes: a method of distributing assets. For example, if the testator has three children A, B and C whom he/she wishes to benefit equally but C dies before the testator, leaving 2 children, then A receives one third, B receives one third and C's two children receive one sixth - each being one third shared between them. Residue: everything that is left over of an estate after all debts, taxes, expenses and legacies have been paid. Revoke: to cancel or withdraw something. For example, a Will is revoked by marriage or by creating a new Will. Settlor: a person who transfers or "settles" something into trust. Testator: as the person who is making the Will. (A female testator used to be called a testatrix). Trust: an arrangement whereby a settlor transfers an asset and the trustees hold the asset for the beneficiaries under certain terms. Trustee: a person who holds property for one or more other beneficiaries.

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