Glossary of Will terms
Here are explanations of the words you may come across when you are making a Will:
Assets Everything that you own. This includes your property, car, jewellery, saving accounts, shares, ISA, investments or anything else of value.
Beneficiary A person or organisation benefiting from a Will.
Bequest A gift left in a Will, also known as a legacy.
Codicil A document containing changes or additions to an existing Will.
Discretionary Trust A legal arrangement that allows appointed trustees to look after estate income. If you have a child with muscle disease, setting up a discretionary trust can be an effective way to safeguard their future.
Estate Everything you own at the time of your death.
Executors Those you have appointed to handle your affairs according to your Will.
Inheritance Tax A tax that is charged on the value of your estate after your death. Inheritance tax is currently 40%* on estates valued at £312,000* or over. (*Both are subject to review at each budget or tax year). A charitable legacy is free of inheritance tax.
Intestate Should someone die without making a Will, they are said to die ‘intestate'. Their estate will be distributed in accordance with the law, which may not necessarily be as they or their family may wish.
Legacy A gift left in a Will, also known as a bequest.
Legator A person who has left a legacy in their Will.
Liabilities Everything that you owe, for example your mortgage, loans and any other debts.
Pecuniary Legacy A specific sum of money that you wish to leave.
Probate The legal procedure to establish that a Will is valid and genuine.
Residuary Legacy The remainder of your estate after all other gifts have been made. The major advantage of a residuary legacy is that its value should increase with inflation.
Specific Legacy Specific items you wish to bequeath to family, friends or organisations. Eg. items of jewellery, car, furniture etc.
Testator/testatrix The person who made the Will.
