Jargon Buster
Will Writing & Estate Planning, in Plain English
Understanding wills, estate planning, inheritance tax, and Lasting Power of Attorney can feel overwhelming. This simple jargon buster explains the most common legal terms and acronyms — whether you are writing a will, planning for the future, or helping a loved one.
Administrator
An administrator is the person responsible for dealing with someone's estate if they die without a valid will. This role is similar to an executor, but applies when there is no will in place.
Asset
An asset is anything valuable that you own. This can include property, savings, investments, pensions, jewellery, vehicles, or personal possessions.
Attorney
An attorney is someone you appoint to make decisions on your behalf under a Lasting Power of Attorney. They can help manage your finances, property, health, or care decisions if you become unable to do so yourself.
Beneficiary
A beneficiary is a person or organisation who receives money, property, or possessions from your will or estate. For example, your children, spouse, friends, or charities can all be beneficiaries.
Capacity / Mental Capacity
Mental capacity means the ability to make your own decisions and understand the consequences of those decisions. If someone loses mental capacity through illness, dementia, accident, or injury, a Lasting Power of Attorney becomes extremely important.
Codicil
A codicil is a legal document used to make small changes to an existing will without writing a completely new one.
Deed of Variation
A Deed of Variation allows beneficiaries to change how assets from an estate are distributed after someone has died. This is often used for inheritance tax planning or family arrangements.
Deputy
A deputy is someone appointed by the Court of Protection to make decisions for someone who has lost mental capacity and does not have a Lasting Power of Attorney in place.
Estate
Your estate is everything you own when you die, including property, savings, investments, pensions, and personal belongings.
Executor
An executor is the person named in a will who is responsible for carrying out the wishes in the will after someone dies. Their duties can include registering the death, applying for probate, paying debts and taxes, and distributing assets to beneficiaries.
Financial LPA
A Financial Lasting Power of Attorney allows someone you trust to manage your finances and property if you cannot manage them yourself. This can include paying bills, managing bank accounts, selling property, and handling investments.
Funeral Wishes
Funeral wishes are instructions left in a will or separate document explaining how someone would like their funeral arranged.
Gift
A gift is anything left to someone in a will, such as money, jewellery, property, or sentimental possessions.
Grant of Probate
A Grant of Probate is the legal document confirming that executors have authority to deal with someone's estate after death.
Guardian
A guardian is the person appointed in a will to care for children under the age of 18 if both parents die. Choosing guardians is one of the most important parts of writing a will for parents with young children.
Health & Welfare LPA
A Health and Welfare Lasting Power of Attorney allows someone you trust to make decisions about your health and care if you lose mental capacity. This can include medical treatment, care home decisions, daily care, and life sustaining treatment decisions.
Inheritance Tax (IHT)
Inheritance Tax is a tax charged on some estates after death. Currently, inheritance tax is usually charged at 40% on the value of an estate above certain tax free allowances. Good estate planning can help reduce or minimise inheritance tax liability.
Intestacy / Intestate
If someone dies without a valid will, they are said to have died intestate. This means strict legal rules decide who inherits the estate, which may not reflect the person's wishes.
Joint Tenants
Joint tenants means two or more people own a property together equally. If one owner dies, their share automatically passes to the surviving owner.
Lasting Power of Attorney (LPA)
A Lasting Power of Attorney is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you lose mental capacity. There are two types: Property and Financial Affairs LPA, and Health and Welfare LPA.
Legacy
A legacy is a gift left in a will. For example, leaving a fixed amount of money to a family member or charity.
Letter of Wishes
A Letter of Wishes is a separate document that accompanies a will. It provides guidance to executors or trustees about your personal wishes but is not legally binding.
Mirror Wills
Mirror wills are similar wills made by couples, usually leaving everything to each other and then to the same beneficiaries.
Nil Rate Band (NRB)
The Nil Rate Band is the amount of your estate that can pass free from inheritance tax. This is one of the main inheritance tax allowances available.
Ordinary Power of Attorney
An Ordinary Power of Attorney allows someone to manage your finances temporarily while you still have mental capacity. Unlike an LPA, it ends if you lose mental capacity.
Probate
Probate is the legal process of dealing with someone's estate after they die. This includes collecting assets, paying debts, and distributing inheritance.
Probate Registry
The Probate Registry is the government office responsible for issuing Grants of Probate.
Property Trust
A property trust is often used in wills to help protect part of a property for children or future generations. This can also help with care fee planning and remarriage protection.
Residence Nil Rate Band (RNRB)
The Residence Nil Rate Band is an additional inheritance tax allowance available when passing a main home to direct descendants such as children or grandchildren.
Residue Estate
The residue estate is what remains after debts, taxes, and specific gifts have been paid from the estate.
Severance of Tenancy
Severance of tenancy changes property ownership from Joint Tenants to Tenants in Common. This allows each owner to leave their share of the property in their will separately.
Specific Gift
A specific gift is a particular item left to someone in a will, such as jewellery, artwork, or a vehicle.
Tenants in Common
Tenants in Common means two or more people own separate shares in a property. Each owner can leave their share to whoever they choose in their will.
Testator / Testatrix
A testator is a man who makes a will. A testatrix is a woman who makes a will. Today, the term "testator" is commonly used for everyone.
Trust
A trust is a legal arrangement where assets are managed by trustees on behalf of beneficiaries. Trusts can help with asset protection, inheritance tax planning, protecting vulnerable beneficiaries, and care fee planning.
Trustee
A trustee is the person responsible for managing assets held in a trust. They must act in the best interests of the beneficiaries.
Whole of Life Insurance
Whole of Life Insurance is a policy designed to pay out when someone dies, often used to help cover inheritance tax liabilities.
Will
A will is a legal document that sets out what should happen to your money, property, and possessions after your death. It can also appoint executors and guardians for children.
Witness
A witness is someone who watches you sign your will and then signs it themselves to confirm it was properly executed. Witnesses should not be beneficiaries of the will.