WRITING A WILL - A COMPLETE GUIDE

Glossary of Terms and Words Commonly Used in Wills

Absolute. Given without any condition. For example, 'I give to ... the residue of my estate absolutely' means just that. Whatever is left in the estate is given absolutely over to that named person.

Administrator. A person appointed by the Probate Registry in the absence of a will being found or a person who is appointed by the Registry to prove a will in the event of there being no executor. A relative or close friend of a beneficiary could be asked to administer the estate in order of beneficial priority.

Assets. Your possessions which, apart from bank accounts, insurance policies etc, include furniture, cars, jewellery - generally everything.

Beneficiary. A person who inherits (benefits) under a will or under intestacy laws or under a trust.

Bequest. A gift of estate (other than immovable property such as houses or land).

Bond of caution. According to Scottish law it represents a sum of money which can compensate the estate for any loss caused by an executor's mistake or omission.

Caveat. A legal term or 'caution' giving the Probate Registrar notice that you intend to challenge the specific will. This caution has a life of six months, and it can be renewed.

Chargeable gift. An item given under the conditions of a will on which tax may have to be paid.

Children. This term now covers both legitimate and illegitimate children, also children who have been legally adopted into the family. It does not include stepchildren. Such persons must therefore be specifically mentioned if they are to benefit under a will. Children who are born as a result of a sperm bank donation have to be specifically named in the will. Mentioning their existence or possible existence without specific title, albeit that instructions are given in the will, could lead to that wish not being fulfilled. At this point, because of the newness of sperm bank donation, this issue is considered to be dangerous, uncharted legal ground and specialist legal advice should be sought.

Codicil. A formal legal document which can be used to make small changes to your will later on.

Confirmation. The Scottish equivalent of a grant of probate.

Crown. This refers to the Government, whatever department.

Deceased. The person who has died.

Descendants. Any member of your blood line, such as children, grandchildren and so on.

Devise and bequeath. To give a gift under a will or codicil.

Distribution. The process of dealing with an estate after receiving the Grant of Probate or Letters of Administration, first paying debts and then dividing up the remainder between the beneficiaries.

Docket. Scottish term for a formal note.

Donee. A person who receives a gift.

Donor. A person who gives a gift.

Engrossment. Final copy of a legal document.

Excepted estates. This is where an estate gains exemption to supply accounts to the Inland Revenue provided certain strict criteria are met, in particular where the value of the estate does not exceed £220,000, and consists of property passed under a will or intestacy or nomination or by survivorship. No more than £75,000 of its value should consist of property outside the United Kingdom and the deceased must have died domiciled in the United Kingdom, having made no lifetime gifts chargeable to either inheritance tax or capital transfer tax or life interests into settlement, but up to £100,000 into a Trust is acceptable. In the case of excepted estates, a Grant of Representation can be applied for to the Inland Revenue where applicants have already gained probate or letters of administration.

Executor. A person appointed by you in your will to deal with the estate. This person cannot charge a fee unless previously authorised by the will, although he or she is able to reclaim out- of-pocket expenses.

Husband. Your spouse who is still alive at the time the will is made (the same definition for Wife). In the case of divorce under English law, a couple are still legally married until the decree absolute.

Infant. Now usually referred to as a Minor, in other words a person who is under the age of 18. The law at the moment states that a minor cannot legally hold possessions from an estate until the age of 18. If an asset has been given, then it is given under the terms of a trust to the parent or guardian (known as a trustee) for the benefit of the infant until the age of majority has been reached. You can, if you wish, declare that the minor is to take possession of the legacy before he or she attains his or her age of majority for a specific purpose.

Interest. The right to your property. If total, then it is called Absolute Interest. Intestate. Dying without a will; the rules of intestacy apply.

Issue. This means all living descendants.

Joint tenant. This term is applied when two or more people jointly own property. Upon the death of one of them that person's share passes to the surviving joint tenant or tenants. However, the value of the estate that is passed on to the surviving tenant(s) still has to be calculated for inheritance tax purposes. No inheritance tax is payable if the surviving joint tenant is the spouse.

Legacy. A gift of money or property other than house or land.

Legal rights. Under Scottish law this means that the surviving spouse and/or children are entitled, irrespective of the will, to benefit from the estate. Limited rights for a spouse are also now included in English law.

Life interest. The right to enjoy the benefit for life of either money or house or land or, in fact, any property. It reverts to the testator's estate upon the death of the person who enjoyed the life interest, to be received by any person or organization named as absolute beneficiary.

Life tenant. The person who benefits from a life interest.

Moveable property. This refers to any property other than land or buildings.

Next of kin. Your closest living relative.

Pecuiniary legacy. A specific gift of money in your will.

Personal representative. The person appointed by the Probate Court to deal with your estate in a Grant of Representation. (This would include an executor named by you in your will.)

Power of appointment. The right to nominate persons to receive the benefit of a trust after your death. (Usually the person given the power is the present life tenant of the trust.)

Probate. The document issued by the Probate Court which pronounces the validity of a will and upholds the appointment of executor. In Scotland this document is known as Confirmation.

Residue. The remainder of an estate after all legacies and bequests have been given to the donees and once all debts, taxes and expenses have been paid.

Small estate. In Scotland it means an estate where the gross value is less than £25,000. This should not be confused with those estates in England and Wales where, because of the small amounts of money involved, ie under £5,000 and termed 'small estates', it is possible to obtain release of the monies in the estate without the legal formality of applying for a Grant.

Survivor. Any relative mentioned in the will who is still alive at the time of the testator's death. It also applies to those who may not have been born at the time the will was made but are referred to in it, subject to limitations.

Tenant-in-common. An alternative to joint tenancy for two or more persons to hold property. In this manner each has a separate share which forms part of his or her estate on death and does not automatically pass to the surviving tenant(s) in common but will pass either under the will or on intestacy.

Testamentary expenses. The cost of administering a will, eg expenses such as telephone, stamps, loss of wages and so on.

Testator. A person who makes a will.

Trust. Parts of an estate (or a whole estate) administered by trustees for the benefit of a named person in accordance with the trust document.

Trustee. A person nominated to deal with a trust.

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