Reference

Glossary

Clear definitions of legal terms and concepts related to wills and estate planning.

A

Abatement

Abatement is the proportional reduction of gifts in a [will](/glossary/will) when the estate has insufficient funds to pay all legacies in full after settling debts, funeral costs, and administration expenses.

Accumulation and Maintenance Trust

An Accumulation and Maintenance Trust (A&M Trust) is a historical trust allowing income to be saved or spent on a child's needs until age [18](/glossary/age-of-majority) or 25, with tax advantages that ended in 2006.

Additional Voluntary Contributions (AVC)

Additional Voluntary Contributions (AVCs) are extra pension payments you make beyond your standard contributions to increase your retirement income, typically taken from your salary before tax and invested separately.

Ademption

Ademption is the automatic failure of a specific gift in a [will](/glossary/will) when the testator no longer owns that particular item at death, leaving the intended beneficiary with nothing.

Administrator

An administrator is a person appointed by the [Probate](/glossary/probate) Registry to manage and distribute the estate of someone who died without a valid will or when no executor can act.

Adoption

Adoption is the legal process that makes a child the permanent legal child of their adoptive parents, with exactly the same [inheritance](/glossary/inheritance) rights as a biological child and no automatic rights from biological parents.

Adult Dependant's Pension

An adult dependant's pension is a lifetime income paid by the NHS Pension Scheme to your surviving [spouse](/glossary/spouse), civil partner, or nominated partner after your death, typically worth 33-50% of your NHS pension entitlement.

Advance Decision / Living Will

An advance decision (also called a living will) is a legally binding document where you specify medical treatments you want to refuse if you later become unable to make or communicate decisions yourself.

Age 18 to 25 Trust

An Age [18](/glossary/age-of-majority) to 25 Trust is a will trust created by parents that allows their children to inherit at a chosen age between 18 and 25, offering favorable inheritance tax treatment while providing protection during young adulthood.

Age of Majority

Age of majority is 18 in England and Wales—the age when you legally become an adult with full rights to make a [will](/glossary/will), inherit property directly, and enter into binding contracts.

Agricultural Land

Agricultural [land](/glossary/immovable-property) is land actively used for farming purposes—including growing crops, rearing livestock, and associated buildings—that may qualify for significant inheritance tax relief when passed through a will.

Agricultural Property Relief (APR)

Agricultural Property Relief (APR) is an [inheritance](/glossary/inheritance) tax relief that reduces or eliminates tax on qualifying farmland, farm buildings, and farmhouses, helping keep family farms intact.

AIM-listed Company

An AIM-listed company is a business traded on the Alternative Investment Market—a sub-market of the London [Stock](/glossary/company-shares) Exchange for smaller or emerging companies—that's treated as 'unquoted' for UK inheritance tax purposes.

Annual Exemption

The Annual Exemption is the £3,000 allowance each person can give away each tax year (6 April to 5 April) without those gifts being added to their [estate](/glossary/estate) for inheritance tax purposes.

Apostille

An apostille is an official certificate issued by the UK government that verifies a document's authenticity for use in over 120 countries without further authentication.

Appropriation

Appropriation is the legal power allowing executors to transfer a specific asset from an [estate](/glossary/estate) directly to a beneficiary instead of selling it and distributing cash, giving executors flexibility to distribute actual assets like property or shares rather than cash proceeds.

Armed Forces Wills

Armed forces wills, also called privileged wills, allow UK military personnel in actual military service to make valid wills without witnesses or even in spoken form under special legal provisions.

Art and Collectibles

Art and collectibles are valuable tangible items like paintings, antiques, sculptures, jewellery, or collections that form part of your [estate](/glossary/estate) and require professional valuation for inheritance tax purposes.

Articles of Association

Articles of association are the internal rulebook for a [limited company](/glossary/limited-company), setting out how it's run and—crucially for estate planning—what happens to shares when someone dies or wants to transfer them.

Assent

An assent is a legal document that transfers ownership of property from a deceased person's [estate](/glossary/estate) to the beneficiary who inherits it, completed by the executor after obtaining probate.

Assets

Assets are everything you own that has value—including property, savings, investments, personal possessions, and digital accounts—which together form your [estate](/glossary/estate) when you die.

Attestation Clause

An attestation clause is the formal statement at the end of a [will](/glossary/will) that records how the testator and witnesses signed it, providing evidence of proper execution under UK law.

Attestation Clause (International Wills)

An attestation clause for an international will is a formal certificate signed by an authorised person confirming that all legal requirements for creating a valid international will under the Washington Convention have been met.

Attorney (LPA Context)

An attorney (in the LPA context) is a person you legally appoint through a Lasting Power of Attorney to make decisions on your behalf if you lose mental capacity.

Attorney Powers and Limitations

Attorney powers and limitations define what attorneys appointed under a Lasting Power of Attorney can and cannot do on behalf of the donor who appointed them.

B

Bankruptcy and Wills

Bankruptcy doesn't stop you making a [will](/glossary/will), but it affects what assets you can leave and means any inheritances you receive before discharge go to your creditors, not you.

Bare Trust

A bare trust is a trust where a [beneficiary](/glossary/beneficiary) has the absolute right to receive assets on demand once they reach adulthood (age 18 in England and Wales, 16 in Scotland).

Beneficial Interest

Beneficial interest is the right to enjoy the economic benefits of a property or asset (such as income, use, or sale proceeds) even when someone else holds the legal title.

Beneficiary

A beneficiary is a person or organisation you name in your [will](/glossary/will) to receive assets, money, or property from your estate after you die.

Beneficiary Witness Rule

The [Beneficiary](/glossary/beneficiary) Witness Rule is a legal principle under Section 15 of the Wills Act 1837 that voids any gift to a person (or their spouse) who witnesses a will, though the will remains valid.

Bereavement Support Payment

Bereavement Support Payment is a government benefit that provides a lump sum and monthly payments for up to 18 months to help with costs after your [spouse](/glossary/spouse) or partner dies.

Best Interests

Best interests is the legal principle under the Mental Capacity Act 2005 that decisions made on behalf of someone who lacks mental capacity must genuinely benefit them and respect their wishes and values.

Bitcoin

Bitcoin is digital currency that operates independently of banks or governments, secured by cryptography and recorded on a public ledger called the [blockchain](/glossary/blockchain).

Blended Family

A blended family is a household where one or both partners have children from previous relationships, creating a family structure that includes stepchildren, biological children, or both.

Blockchain

Blockchain is a secure digital ledger system that records transactions in connected blocks across multiple computers, enabling cryptocurrency and other [digital assets](/glossary/digital-assets) to exist without central control.

Body Donation to Medical Science

Body donation to medical science is the process of giving your whole body to a medical school after death to be used for teaching anatomy, surgical training, or medical research.

Bona Vacantia

Bona vacantia is the legal term for ownerless property that passes to the Crown when someone dies without a [will](/glossary/will) and no living relatives can be found to inherit their estate.

Breach of Trust

Breach of trust occurs when a trustee fails to comply with the trust's terms or their legal duties, making them personally liable to compensate [beneficiaries](/glossary/beneficiary) for any losses caused.

Brussels IV Regulation

Brussels IV Regulation is an EU law that determines which country's [inheritance](/glossary/inheritance) rules apply when someone dies with connections to multiple EU countries, based on where they lived at death.

Burden of Proof

Burden of proof is the legal obligation to provide sufficient evidence to establish a claim in a [will](/glossary/will) dispute, typically requiring proof on the balance of probabilities (more likely than not).

Business Assets

Business [assets](/glossary/assets) are all property owned by or used in your business—including equipment, stock, intellectual property, and goodwill—that may qualify for inheritance tax relief when passed through your estate.

Business Property Relief (BPR)

Business Property Relief (BPR) is an [inheritance](/glossary/inheritance) tax relief that reduces qualifying business assets' taxable value by 50% or 100%, enabling family businesses to pass without being sold for tax.

Business Succession Planning

Business [succession planning](/glossary/estate-planning) is the process of deciding who will own and run your business after your death or retirement, and how to transfer it efficiently while minimizing tax and preserving value.

Business Valuation

Business valuation is the process of determining the worth of your business, [company shares](/glossary/company-shares), or business assets for inheritance tax and probate purposes at the date of death.

Buy-to-Let Property

A buy-to-let property is a house or flat purchased specifically to rent out to tenants as an investment, typically financed with a specialist buy-to-let [mortgage](/glossary/mortgage) with different terms from residential mortgages.

C

Capacity Assessment

A capacity assessment is a formal evaluation by a [solicitor](/glossary/solicitor), doctor, or both to determine whether someone has the mental ability to make a specific legal decision at a particular time.

Capital Gains Tax (Estate Context)

Capital Gains Tax in an [estate](/glossary/estate) context refers to tax treatment of asset gains when someone dies, where death provides a tax-free 'uplift' that eliminates CGT on historical gains.

Care Home Fees

Care home fees are the costs charged for residential or nursing home care, which can significantly deplete your [estate](/glossary/estate) depending on your savings, property value, and income.

Caveat

A caveat is a formal notice entered at the [Probate](/glossary/probate) Registry that stops anyone from obtaining a grant of probate or letters of administration for 6 months while disputes are resolved.

Caveat Emptor (Will Challenges)

Caveat emptor in will challenges means potential challengers must investigate their concerns and gather solid evidence before bringing a claim, or risk paying substantial costs if their challenge fails.

Certificate Provider

A certificate provider is an independent person who confirms the donor understands their Lasting Power of Attorney, is making it voluntarily without pressure, and has the mental capacity to do so.

Chain of Representation

A chain of representation is a legal principle where the [executor](/glossary/executor) of a deceased executor automatically assumes responsibility for completing the original estate administration without requiring a new grant of probate.

Chargeable Estate

Your chargeable [estate](/glossary/estate) is the portion of your estate that's actually subject to Inheritance Tax, calculated after deducting debts, exemptions like spouse gifts, and reliefs from everything you own.

Chargeable Lifetime Transfer (CLT)

A Chargeable Lifetime Transfer (CLT) is a gift made during your lifetime—typically into a trust—that triggers an immediate [inheritance](/glossary/inheritance) tax charge of 20% on amounts exceeding £325,000.

Charitable Trust

A charitable trust is a trust established exclusively to benefit registered charities or charitable purposes, giving trustees flexibility to distribute [assets](/glossary/assets) to multiple causes while receiving complete inheritance tax relief.

Charity Exemption

Charity exemption is an [inheritance](/glossary/inheritance) tax relief that makes gifts to UK registered charities completely tax-free and can reduce the tax rate on the rest of your estate from 40% to 36%.

Chattels

Chattels are your personal belongings—tangible [movable property](/glossary/movable-property) you can physically touch and move, such as furniture, jewellery, vehicles, books, and household items, but not money, investments, or business assets.

Child / Children

In UK wills and [estate planning](/glossary/estate-planning), "children" refers to your biological sons and daughters and any legally adopted children, but does not automatically include stepchildren unless you name them specifically in your will.

Citation

A citation is a formal court notice compelling someone entitled to [probate](/glossary/probate) to act within a specified time or forfeit their right as executor.

Civil Partner

A civil partner is someone who has registered a civil [partnership](/glossary/partnership)—a legally recognized relationship that provides identical inheritance rights, tax exemptions, and estate planning protections as marriage.

Claimant

A claimant is the person who starts a legal case by bringing a claim to court—in [estate](/glossary/estate) disputes, this is typically someone challenging a will or seeking provision from an estate.

Classic Car

A classic car is an older vehicle (typically 20+ years) valued for its age, rarity, or historical significance that forms part of your [estate](/glossary/estate) and must be valued for inheritance tax purposes.

Clinical Negligence

Clinical negligence occurs when a healthcare provider breaches their legal duty of care to a patient through substandard treatment that directly causes harm, injury, or worsening of the patient's condition.

Cloud Storage

Cloud storage is an online service (like Google Drive, iCloud, or Dropbox) that stores your files remotely on internet servers, accessible from any device but requiring specific arrangements for [executor](/glossary/executor) access after death.

Codicil

A codicil is a legal document that makes specific changes to an existing will without replacing the entire will, though modern practice generally favours writing a new will instead.

Cohabitation Agreement

A cohabitation agreement (also called a living together agreement) is a legally binding contract between unmarried partners that sets out who owns what property and [assets](/glossary/assets), who pays for what, and what happens if they separate or one partner dies.

Cohabitee / Unmarried Partner

A cohabitee or unmarried partner is someone living with their romantic partner without being married or in a [civil partnership](/glossary/civil-partner)—a relationship status that provides no automatic inheritance rights under UK law, regardless of how long you've lived together.

Common Law Marriage Myth

The common law marriage myth is the widespread but false belief that living together for a certain period automatically grants unmarried couples the same legal rights as married couples—it doesn't.

Commorientes Rule

The commorientes rule is a legal presumption that when two or more people die together and you cannot prove who died first, the younger person is deemed to have survived the older person.

Company Administrator

A company administrator is a licensed insolvency practitioner appointed to take control of a financially distressed company to rescue it, restructure it, or achieve the best outcome for creditors.

Company Shares

Company shares are units of ownership in a business that represent your stake in the company and form part of your [estate](/glossary/estate) when planning your will.

Contemplation of Marriage Clause

A contemplation of marriage clause is a provision in your [will](/glossary/will) that prevents it from being automatically cancelled when you marry a particular named person.

Contesting a Will / Contentious Probate

Contesting a [will](/glossary/will) (contentious probate) is the legal process of challenging a will's validity or claiming financial provision from an estate when someone believes the will is invalid, improperly executed, or fails to provide adequately for dependents.

Contingent Interest

A contingent interest is a right to receive [inheritance](/glossary/inheritance) or trust property only if a specific condition is met, such as reaching a certain age or surviving another person.

Controlling Interest

Controlling interest is the ownership of enough [shares](/glossary/company-shares) in a company—typically more than 50% of voting shares—to control major business decisions and determine the company's direction.

Costs Order

A costs order is a court's decision about who pays the legal bills after a dispute, usually requiring the losing party to pay both sides' costs, which can total £50,000 or more.

Court of Protection

The Court of Protection is a specialist UK court that makes decisions about finances and welfare for people who lack mental capacity to make those decisions themselves.

Creditor

A creditor is a person or organization to whom the deceased owed money at the time of death, and who has a legal right to claim payment from the deceased's [estate](/glossary/estate).

Cross-Option Agreement

A cross-option agreement is a legal contract between business shareholders that gives surviving shareholders the right to buy—and the deceased's [estate](/glossary/estate) the right to sell—shares when a shareholder dies or becomes critically ill.

Cryptocurrency

Cryptocurrency is digital currency secured by cryptography and recorded on a [blockchain](/glossary/blockchain), constituting personal property under UK law that can be included in your will and passed to beneficiaries.

Cryptocurrency Wallet

A cryptocurrency wallet is a digital tool that stores private keys—secret codes needed to access, manage, and transfer cryptocurrency, rather than storing the actual coins themselves.

Currency Fluctuation Risk

Currency fluctuation risk is the financial impact of exchange rate changes on foreign [assets](/glossary/assets) in your estate between death and distribution to beneficiaries.

D

Death in Service Benefit

Death in service benefit is a tax-free lump sum payment, typically 2-4 times your salary, that your employer provides to your nominated [beneficiaries](/glossary/beneficiary) if you die while employed.

Deed of Variation

A deed of variation is a legal document that allows [beneficiaries](/glossary/beneficiary) to redirect their inheritance within two years of someone's death, treating the change as if the deceased had made it themselves.

Deemed Domicile

Deemed domicile is a UK tax rule that treated long-term residents (15+ years historically, 10+ years from 2025) as UK domiciled for [Inheritance](/glossary/inheritance) Tax purposes, making worldwide assets taxable.

Defendant (Probate Context)

In [probate](/glossary/probate) disputes, a defendant is the party being sued who must respond to legal challenges about a will's validity, estate administration, or inheritance claims.

Deferred Member (NHS)

A deferred member (NHS) is a former NHS employee who left the NHS Pension Scheme before retirement but retained their accumulated pension benefits, which remain preserved until they reach the scheme's normal pension age.

Defined Benefit Pension

A defined benefit pension is a workplace pension that pays you a guaranteed retirement income based on your salary and years of service, with your employer bearing all investment risk.

Defined Contribution Pension

A defined contribution pension is a retirement savings pot where the amount you receive depends on contributions made by you and your employer, plus investment performance, rather than being guaranteed based on your salary.

Dependent

A dependent is someone who relies on you for financial support—such as an unmarried partner, adult child with disabilities, or elderly parent—who may have legal rights to claim from your [estate](/glossary/estate) even if not named in your will.

Deprivation of Liberty Safeguards (DoLS)

Deprivation of Liberty Safeguards (DoLS) are legal protections for people in care homes or hospitals who lack mental capacity to consent to restrictions on their freedom, ensuring any limitations are necessary and in their [best interests](/glossary/best-interests).

Deputy

A deputy is a person or organisation appointed by the Court of Protection to make decisions on behalf of someone who lacks mental capacity and doesn't have a lasting power of attorney in place.

Devastavit

Devastavit is a legal claim against an [executor](/glossary/executor) who has caused financial loss to an estate through mismanagement, negligence, or improper handling of assets, making them personally liable to compensate the estate.

Digital Assets

Digital [assets](/glossary/assets) are anything stored electronically that you own or have rights to use, including cryptocurrency, online bank accounts, email accounts, social media profiles, digital photos, and cloud-stored files.

Digital Executor

A digital [executor](/glossary/executor) is a person named in your will to manage your online accounts, digital assets, and electronic records after your death, working alongside or as part of your main executor role.

Digital Footprint

Your digital footprint is the complete record of your online presence—every account, post, email, photo, and interaction—that persists after your death unless someone takes action to manage it.

Digital Legacy

Digital legacy is all the online accounts, digital files, and electronic data you leave behind when you die, from social media and photos to cryptocurrency and [cloud storage](/glossary/cloud-storage).

Direct Descendants

Direct descendants are your children, grandchildren, great-grandchildren, and all future generations in your direct line, including adopted children and stepchildren if you're married to their parent.

Director

A director is a person legally appointed to manage a [limited company](/glossary/limited-company)'s day-to-day operations on behalf of shareholders, with personal responsibility for ensuring the company complies with UK law.

Directors and Officers Insurance

Directors and Officers Insurance (D&O) is liability insurance that protects [company directors](/glossary/director) personally by covering legal costs and damages when they're sued for alleged wrongful acts while running the business.

Disabled Person's Trust

A Disabled Person's Trust holds [assets](/glossary/assets) for someone with a qualifying disability, protecting benefit eligibility while providing inheritance tax advantages.

Disclaimer (of Inheritance)

A disclaimer of [inheritance](/glossary/inheritance) is a formal refusal to accept a gift left to you in a will or through intestacy, treating you as if you had never been entitled to it.

Discretionary Trust

A discretionary trust is a flexible trust where trustees have complete discretion to decide which [beneficiaries](/glossary/beneficiary) receive trust assets, how much they receive, and when.

Disinheritance

Disinheritance is when you deliberately exclude someone from your [will](/glossary/will) who would normally expect to inherit from you—such as a child, spouse, or other close family member.

Dissolution (of Civil Partnership)

Dissolution is the legal process of ending a [civil partnership](/glossary/civil-partner) through a court order, equivalent to divorce for married couples, which automatically removes your former partner from your will.

Distribution

Distribution is the final stage of [estate](/glossary/estate) administration where the executor transfers the deceased's assets to beneficiaries after paying all debts, taxes, and expenses—the culmination of months of legal work beneficiaries have been waiting for.

Dividend

A dividend is a payment of company profits distributed to shareholders, typically paid regularly as a reward for holding [shares](/glossary/company-shares) in that company.

Divorce

Divorce is the legal process that ends a marriage, automatically revoking any gifts to your former [spouse](/glossary/spouse) in your will and removing them as executor unless your will states otherwise.

DIY Will Risks

DIY will risks are the legal, financial, and practical problems that can occur when you write a [will](/glossary/will) yourself without professional help, including making your will invalid or causing costly family disputes.

DNR / DNACPR

DNACPR (do not attempt cardiopulmonary resuscitation) is a medical form completed by a doctor stating that CPR should not be attempted if your heart or breathing stops.

Domain Name

A domain name is the unique internet address (like "yourname.co.uk" or "yourbusiness.com") that you register and renew periodically to direct visitors to your website, acting as your online identity and a transferable digital asset.

Domicile

Domicile is the country you consider your permanent legal home where you intend to settle long-term, which determines which country's laws apply to your [inheritance](/glossary/inheritance) and estate.

Domicile of Choice

Domicile of choice is the country you've actively chosen to make your permanent home by living there and intending to remain indefinitely, different from your [domicile of origin](/glossary/domicile-of-origin).

Domicile of Origin

Domicile of origin is the legal "home country" you're automatically assigned at birth based on your parents' domicile, usually your father's if your parents were married.

Donor (LPA Context)

A donor (in LPA context) is the person who creates a lasting power of attorney and appoints one or more attorneys to make decisions on their behalf if they lose mental capacity.

Double Taxation Treaty

A double taxation treaty is an agreement between the UK and another country that prevents you from paying [inheritance](/glossary/inheritance) tax twice on the same assets when you die.

Drag-Along Rights

Drag-along rights are contractual provisions in a shareholders' agreement that allow majority shareholders to force minority shareholders to sell their [shares](/glossary/company-shares) when the majority accepts a sale offer, ensuring everyone receives the same price and terms.

Dual Will Strategy

A dual will strategy is an [estate planning](/glossary/estate-planning) approach where you create separate wills in different countries to govern assets located in each jurisdiction, allowing faster probate and compliance with local laws.

E

Earn-out Agreement

An earn-out agreement is a business sale payment structure where the buyer pays part of the purchase price later, contingent on the business achieving agreed performance targets after completion.

Enduring Power of Attorney (EPA)

An Enduring Power of Attorney (EPA) is a legal document created before October 2007 that appointed someone to manage your property and financial affairs, continuing even if you lost mental capacity.

Equity

Equity is the portion of your property that you own outright, calculated by subtracting your outstanding [mortgage](/glossary/mortgage) and secured loans from your property's current market value.

Equity Release

[Equity](/glossary/equity) release is a financial product allowing homeowners aged 55+ to access cash from their property's value while continuing to live there, with the loan typically repaid after death or moving into care.

Estate

An estate is everything a person owns (their [assets](/glossary/assets)) minus everything they owe (their debts), which passes to their beneficiaries after death.

Estate Accounts

[Estate](/glossary/estate) accounts are detailed financial records showing all assets, debts, expenses, and distributions in a deceased person's estate from death until final distribution to beneficiaries.

Estate Administration

[Estate](/glossary/estate) administration is the complete legal process of collecting a deceased person's assets, paying debts and taxes, and distributing what remains to beneficiaries according to the will or intestacy law.

Estate Planning

[Estate](/glossary/estate) planning is organizing how your property, money, and possessions will be managed and passed on when you die or if you become unable to make decisions yourself.

Estrangement

Estrangement is a breakdown in family relationships where contact and communication stop or become minimal, which can affect but doesn't eliminate [inheritance](/glossary/inheritance) rights under UK law.

Ethereum

Ethereum is a cryptocurrency and programmable [blockchain](/glossary/blockchain) platform whose digital currency (Ether or ETH) is legally recognized as property in the UK and subject to inheritance tax.

European Certificate of Succession

A European Certificate of Succession is an official EU document that proves your legal right to inherit [assets](/glossary/assets) or administer estates across multiple EU countries, simplifying cross-border inheritance.

Excepted Estate

An excepted [estate](/glossary/estate) is an estate that qualifies for simplified inheritance tax reporting to HMRC, allowing executors to apply for probate without completing the detailed IHT400 form.

Execution (of a Will)

Execution of a [will](/glossary/will) is the formal signing process required by law to make your will legally valid, involving your signature and two independent witnesses who must be present together.

Executor

An executor is the person you name in your [will](/glossary/will) to manage your estate after you die, ensuring your debts are paid and your belongings go to the right people.

Executor's Year

The [executor](/glossary/executor)'s year is a 12-month period from the date of death during which executors cannot be legally forced to distribute the estate, allowing time to complete administrative tasks and settle debts.

Exit Charge

An exit charge is an [inheritance](/glossary/inheritance) tax charge (up to 6% of the asset value) that trustees must pay when distributing money or assets from a discretionary trust to beneficiaries.

Expat Will

An expat will is a [will](/glossary/will) designed for UK citizens living abroad or anyone with cross-border assets, addressing the legal, tax, and jurisdictional complexities of international estate planning.

F

Family Provision

Family provision is the legal mechanism allowing certain family members and dependants to claim financial support from a deceased person's [estate](/glossary/estate) if the will or intestacy rules failed to provide adequately for them.

FATCA

FATCA (Foreign Account Tax Compliance Act) is US legislation requiring banks worldwide to report accounts held by American citizens to the IRS, and requiring US citizens to report foreign financial [assets](/glossary/assets) over $200,000.

Fiduciary Duty

Fiduciary duty is the obligation for executors, trustees, and personal representatives to act with loyalty and care for [beneficiaries](/glossary/beneficiary) while avoiding conflicts of interest or personal gain.

Final Distribution

Final distribution is the conclusive transfer of [estate](/glossary/estate) assets to beneficiaries after all debts, taxes, and administration tasks are complete, marking the end of the executor's responsibilities.

Financial Advisor / IFA

A financial advisor is an FCA-regulated professional who provides expert advice on investments, pensions, [inheritance](/glossary/inheritance) tax planning, and financial strategies to help you manage and protect your wealth.

Financial Provision Claim

A financial provision claim is a legal application under the [Inheritance](/glossary/inheritance) (Provision for Family and Dependants) Act 1975 to vary a deceased person's estate when insufficient provision has been made for eligible family members or dependants.

Fixed Fee vs Hourly Rate

Fixed fee is a set price agreed upfront for legal work regardless of time spent, while hourly rate charges clients based on actual hours worked by solicitors.

Forced Heirship

Forced heirship is a legal rule in civil law countries that requires you to leave a minimum portion of your [estate](/glossary/estate)—typically 50-75%—to your children, regardless of your wishes.

Foreign Assets

Foreign [assets](/glossary/assets) are property, money, investments, or possessions located outside the UK that form part of your estate, including overseas property, foreign bank accounts, and international investments.

Forfeiture Rule

The Forfeiture Rule prevents anyone who unlawfully kills another person from inheriting from their victim's [estate](/glossary/estate) or receiving any financial benefit arising from the death.

Forgery

Forgery is the criminal act of creating a fake will or altering an existing will without authority, with intent to deceive others into accepting it as genuine.

Fraud

Fraud in wills is the deliberate use of deception, misrepresentation, or dishonesty to manipulate a [will](/glossary/will)'s contents or who benefits from it, making the will invalid.

Freehold

Freehold is a type of property ownership where you own both the building and the [land](/glossary/immovable-property) it stands on outright, with no time limit and no ground rent to pay.

Funeral Expenses

Funeral expenses are the costs of arranging and conducting a funeral, which are paid from the deceased's [estate](/glossary/estate) as a priority debt before most other claims and inheritances are distributed.

Funeral Wishes

Funeral wishes are written instructions about how you want your funeral conducted and your body disposed of after death, usually included in your [will](/glossary/will) or a separate letter of wishes.

G

Gift with Reservation of Benefit (GROB)

A Gift with Reservation of Benefit (GROB) occurs when you give away an asset but continue to use it or benefit from it, meaning it remains in your [estate](/glossary/estate) for inheritance tax purposes.

Gifts out of Normal Expenditure

Gifts out of normal expenditure is an [inheritance](/glossary/inheritance) tax exemption allowing unlimited regular gifts from surplus income without counting toward your estate if they don't reduce your standard of living.

GMC Registration

GMC registration is the official approval from the General Medical Council that allows a doctor to legally practise medicine in the UK, confirming they meet required standards for safe patient care.

Godparents

Godparents are people chosen by parents to support a child's spiritual development and act as mentors, but they have no automatic legal rights or responsibility for the child under UK law.

Goodwill

Goodwill is the intangible value of a business beyond its physical [assets](/glossary/assets), including reputation, customer relationships, and brand recognition that make the business worth more than its tangible components alone.

GP Partnership Death Provisions

GP [Partnership](/glossary/partnership) Death Provisions are clauses in a medical practice partnership agreement that allow the practice to continue operating when a partner dies, specifying how their share will be valued and paid to their estate.

Grant de Bonis Non

A grant de bonis non is a special [probate](/glossary/probate) grant appointing a new administrator to complete estate administration when the original executor or administrator dies or becomes incapable before finishing their duties.

Grant of Double Probate

A grant of double [probate](/glossary/probate) is a second probate grant issued to an executor who initially had 'power reserved,' allowing them to join other executors in administering an estate after the original grant was issued.

Grant of Probate

A Grant of [Probate](/glossary/probate) is an official court document that gives executors the legal authority to access, manage, and distribute a deceased person's estate when there's a valid will.

Grant of Representation

A Grant of Representation is the legal document issued by the [Probate](/glossary/probate) Registry that authorizes a person to administer a deceased person's estate in England and Wales, including accessing assets, paying debts, and distributing inheritances.

Gross Estate

Gross [estate](/glossary/estate) is the total value of everything you own at death—including property, savings, investments, possessions, and gifts made within seven years—before deducting any debts or liabilities.

Ground Rent

Ground rent is an annual fee that [leasehold](/glossary/leasehold) property owners pay to the freeholder for the right to occupy the land their home sits on, without receiving any services in return.

Guardian

A guardian is a person you legally appoint in your [will](/glossary/will) to care for your children if you die before they turn 18, giving them full parental responsibility—the same legal authority you currently have.

H

Hardware Wallet

A hardware wallet is a physical USB-like device that stores your cryptocurrency private keys completely offline, protecting them from hackers while requiring careful backup planning so your [beneficiaries](/glossary/beneficiary) can access your crypto after your death.

Health and Welfare LPA

A health and welfare LPA is a legal document that lets you choose someone to make healthcare and personal care decisions for you if you lose mental capacity.

Heritage Assets Relief

Heritage [Assets](/glossary/assets) Relief provides conditional exemption from inheritance tax for nationally important buildings, land, artworks, and collections that are preserved and made accessible to the public.

HMRC

HMRC (His Majesty's Revenue and Customs) is the UK government department that collects taxes, including [inheritance](/glossary/inheritance) tax, and provides clearance needed for executors to obtain probate.

Holographic Will

A holographic will is a [will](/glossary/will) written entirely by hand. In England and Wales, it must still be witnessed by two independent adults to be legally valid.

Hospital/Care Home Will Making

Hospital or care home will making is the process of creating or updating a legally valid [will](/glossary/will) while you are a patient in a hospital, hospice, or resident in a care home.

I

IHT400

Form IHT400 is [HMRC](/glossary/hmrc)'s detailed Inheritance Tax return that executors complete to report the full value of an estate and calculate any tax due.

Ill-Health Retirement

Ill-health retirement is when you can access your pension before normal retirement age because a permanent health condition prevents you from continuing in your job.

Immovable Property

Immovable property is land and anything permanently attached to it—such as buildings, structures, or minerals—that cannot be moved without causing damage or altering its nature.

Indemnity

Indemnity is legal or contractual protection that safeguards executors, [beneficiaries](/glossary/beneficiary), or third parties from financial loss or liability arising from the administration or distribution of an estate.

Inheritance

Inheritance is the money, property, and possessions you receive from someone who has died, either as they specified in their [will](/glossary/will) or according to legal rules if they didn't make one.

Inheritance Act 1975

The [Inheritance](/glossary/inheritance) Act 1975 is UK legislation that allows certain family members and dependants to challenge a will or intestacy if they haven't been left reasonable financial provision from the estate.

Inheritance Tax (IHT)

[Inheritance](/glossary/inheritance) Tax (IHT) is a tax paid on the estate of someone who has died, charged at 40% on the value above £325,000.

Insolvent Estate

An insolvent [estate](/glossary/estate) is an estate where the deceased's debts exceed their assets, requiring creditors to be paid in strict legal priority order with nothing left for beneficiaries.

Intellectual Property

Intellectual property is the legal ownership of creations like copyrights, patents, trademarks, and designs that you can include in your [will](/glossary/will) and pass on to beneficiaries.

Interim Distribution

An interim distribution is a partial payment of [inheritance](/glossary/inheritance) made to beneficiaries during estate administration, before all debts, taxes, and expenses are finalized and the estate is fully settled.

Intestacy

Intestacy occurs when someone dies without a valid [will](/glossary/will), meaning strict legal rules—rather than the deceased's wishes—automatically determine who inherits their estate.

Invalid Will

An invalid will is a [will](/glossary/will) that doesn't meet the legal requirements for validity under UK law, making it unenforceable and unable to distribute the deceased person's estate.

Inventory of Assets

An inventory of [assets](/glossary/assets) is a comprehensive list of all property, possessions, and debts owned by the deceased at the time of death, with each item valued, which executors are legally required to create.

Investment Portfolio

An investment portfolio is the collection of all your financial investments—including [stocks](/glossary/company-shares), shares, funds, ISAs, and bonds—held across one or more investment accounts or platforms.

ISA (Individual Savings Account)

An ISA (Individual Savings Account) is a UK tax-efficient savings or investment account where income and growth are free from income tax and capital gains tax up to an annual £20,000 limit.

Issue

Issue is the legal term for all your [lineal descendants](/glossary/direct-descendants)—your children, grandchildren, great-grandchildren, and every subsequent generation in your direct bloodline.

J

Joint Bank Account (Estate Treatment)

A joint bank account is a bank account held by two or more people where, in England and Wales, the surviving account holder(s) automatically inherit all the money when one account holder dies.

Joint Tenants

Joint tenants are property co-owners who own the whole property together with equal rights and automatic right of survivorship, meaning the surviving owner(s) automatically inherit when one owner dies.

Jointly (Attorneys)

Jointly appointed attorneys must unanimously agree on every decision and all sign documents together—if one attorney cannot act, the entire Lasting Power of Attorney fails unless [replacement attorneys](/glossary/replacement-attorney) were appointed.

Jointly and Severally (Attorneys)

Jointly and severally is an appointment option for multiple [LPA attorneys](/glossary/attorney-lpa-context) that allows them to make decisions either independently or together, providing maximum flexibility in how they manage your affairs.

K

Key Person Insurance

Key Person Insurance is a business-owned [life insurance](/glossary/life-insurance) policy on a crucial employee, director, or owner that pays the company if that person dies or becomes critically ill.

L

Lack of Due Execution

Lack of due execution is a legal ground for challenging a [will](/glossary/will)'s validity when the strict signing and witnessing requirements of the Wills Act 1837 were not properly followed.

Lack of Knowledge and Approval

Lack of knowledge and approval is a ground for challenging a [will](/glossary/will) where the testator didn't understand what was in the will or what its effect would be when signing.

Land Registry

HM [Land](/glossary/immovable-property) Registry is the government organization that maintains the official digital record of property ownership in England and Wales, providing legally guaranteed records that prove who owns each property.

Lapse

Lapse is when a gift in your [will](/glossary/will) fails because the intended beneficiary has died before you, causing that gift to return to your estate's residue unless specific exceptions apply.

Larke v Nugus Request

A Larke v Nugus request is a formal letter to the [solicitor](/glossary/solicitor) who drafted a disputed will, asking for details about how it was prepared and whether the deceased had capacity and understood its contents.

Lasting Power of Attorney (LPA)

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more trusted people to make decisions on your behalf if you become unable to do so yourself.

Law Society

The Law Society is the professional organization for solicitors in England and Wales. It sets best-practice standards and helps you find qualified legal professionals.

Leasehold

Leasehold is a form of property ownership where you own the right to occupy a property for a fixed number of years (typically 99-125 years) but the [land](/glossary/immovable-property) belongs to a freeholder (landlord).

Legacy / Bequest

A legacy (also called a bequest) is any gift you leave to someone in your [will](/glossary/will), whether it's a specific item like jewellery, a cash sum, or a share of what remains after other gifts and expenses.

Legal Guardian vs Godparent

A [legal guardian](/glossary/guardian) is someone formally appointed in your will to care for your children with full parental responsibility, while a godparent is a ceremonial or spiritual role with no legal authority.

Legalization

Legalization is the process of officially certifying UK legal documents (like [wills](/glossary/will) or probate grants) as genuine so they can be accepted by authorities in countries outside the Hague Convention.

Letter of Wishes

A Letter of Wishes is a confidential, non-binding document alongside your [will](/glossary/will) that provides guidance to executors and trustees on managing your estate and exercising discretionary powers.

Letters of Administration

Letters of Administration is a court document issued by the [Probate](/glossary/probate) Registry that gives legal authority to manage and distribute the estate of someone who died without a valid will (intestate).

Leveraged Buyout

A leveraged buyout is the acquisition of a business financed primarily through borrowed money (typically 70-80% debt), with the purchased company's [assets](/glossary/assets) used as security and its cash flow used to repay the loan.

LGBTQ+ Considerations

LGBTQ+ considerations are specific legal and family issues that lesbian, gay, bisexual, transgender, and queer individuals should address in their wills to protect partners, children, and their identity after death.

Liabilities / Debts

Liabilities are financial obligations—such as debts, taxes, and [funeral expenses](/glossary/funeral-expenses)—that must be paid from your estate before any inheritance can be distributed to your beneficiaries.

Life Insurance

Life insurance is a financial product that pays out a lump sum or regular income to your chosen [beneficiaries](/glossary/beneficiary) when you die, providing financial security for your loved ones.

Life Insurance Trusts

A [life insurance](/glossary/life-insurance) trust places your life insurance policy into a trust so the payout bypasses your estate, avoiding inheritance tax and probate delays.

Life Interest Trust

A Life Interest Trust allows someone (the life tenant) to use or benefit from [assets](/glossary/assets) during their lifetime, while preserving them for others (remaindermen) to inherit after they die.

Life Tenant

A life tenant is a person who has the right to live in a property or receive income from trust [assets](/glossary/assets) for their lifetime, while the capital is preserved for other beneficiaries who inherit after their death.

Lifetime Gift

A lifetime gift is cash, property, or any asset you give away during your lifetime, which can reduce your [inheritance](/glossary/inheritance) tax bill if you survive seven years after making the gift.

Lifetime Trust

A lifetime trust (or inter vivos trust) is created during your lifetime. You transfer legal ownership of [assets](/glossary/assets) to trustees who manage them for beneficiaries according to your trust deed.

Limited Company

A limited company is a business structure that exists as a separate legal entity from its owners, meaning the owners' personal liability for business [debts](/glossary/liabilities) is limited to their investment amount.

Lock-in Provision

A lock-in provision is a contractual restriction preventing shareholders from selling their [company shares](/glossary/company-shares) for a specified period, typically used to ensure founders and key shareholders remain committed to the business.

Locum Income

Locum income is earnings from temporary medical or professional work, typically paid to [self-employed](/glossary/sole-trader) doctors, GPs, or healthcare workers who fill short-term positions or provide cover for absent colleagues.

M

Main Residence

Your main residence is the property you live in as your home, which may qualify for an additional £175,000 [inheritance](/glossary/inheritance) tax allowance when left to your children or grandchildren.

Management Buyout (MBO)

A management buyout (MBO) is a business sale where the existing management team purchases the company from its current owners, often used as a [succession planning](/glossary/estate-planning) strategy by business owners retiring or exiting the business.

Mediation (Probate Disputes)

Mediation for [probate](/glossary/probate) disputes is a confidential process where an impartial professional helps parties resolve disagreements about wills or estates without going to court.

Medical Defence Organization (MDO)

A Medical Defence Organization (MDO) is a membership organization that provides professional indemnity cover and legal support to doctors and healthcare professionals facing clinical negligence claims, complaints, and regulatory investigations.

Medical Indemnity Insurance

Medical indemnity insurance is professional liability cover protecting healthcare practitioners from negligence claims, covering legal costs and compensation payments when patients allege treatment caused harm.

Medical Practice Succession

Medical practice succession is the planned transfer of a doctor's ownership share in their practice to continuing or new partners when they retire, become incapacitated, or die.

Mental Capacity

Mental capacity is your legal ability to understand and make decisions for yourself at the time a decision needs to be made, governed by the Mental Capacity Act 2005.

Mental Capacity Act 2005

The Mental Capacity Act 2005 is UK legislation establishing a legal framework for making decisions on behalf of adults who lack the mental capacity to make specific decisions for themselves.

Minor

A minor is anyone under [18](/glossary/age-of-majority) years old who has not yet reached the age of majority and therefore has limited legal capacity to manage assets or make binding legal decisions.

Minority Shareholder

A minority shareholder is someone who owns less than 50% of a company's voting [shares](/glossary/company-shares) and therefore cannot control major company decisions without the agreement of other shareholders.

Mirror Wills

Mirror wills are two separate matching wills created by a couple, where each partner leaves their [estate](/glossary/estate) to the other first, then to the same beneficiaries after both have died.

Missing Beneficiary Insurance

Missing [beneficiary](/glossary/beneficiary) insurance is a probate policy that protects executors and receiving beneficiaries from financial liability if an unknown or untraceable beneficiary later claims their share after the estate has been distributed.

Mortgage

A mortgage is a loan secured against property that allows you to buy a home, where the lender can repossess and sell the property if you fail to make repayments.

Movable Property

Movable property is any tangible [personal belongings](/glossary/chattels) you can physically move—such as furniture, jewellery, cars, and art—excluding money, business assets, and property held solely as an investment.

Mutual Wills

Mutual wills are separate wills made by two people (typically [spouses](/glossary/spouse)) containing a legally binding agreement that prevents the survivor from changing their will after the first person dies.

N

National Will Register

The National Will Register is a voluntary UK-wide database where you record that you've made a [will](/glossary/will) and where it's stored, helping executors locate it after your death.

Net Estate

Net [estate](/glossary/estate) is the total value of everything you own (your gross estate) minus all debts, mortgages, and other liabilities you owe at the time of your death.

Next of Kin

Next of kin is a term for your closest living relative, though in the UK it has no universal legal definition and does not automatically grant [inheritance](/glossary/inheritance) rights or decision-making authority.

NFT (Non-Fungible Token)

An NFT (Non-Fungible Token) is a unique digital certificate of ownership recorded on a [blockchain](/glossary/blockchain) that proves you own a specific digital asset, such as artwork, music, videos, or collectibles.

NHS Pension Death Benefits

NHS Pension [Death Benefits](/glossary/death-in-service) are lump sum payments and ongoing pensions paid to your family by the NHS Pension Scheme if you die while working for the NHS or shortly after retirement.

NHS Pension Scheme

The NHS Pension Scheme is a defined benefit pension plan for NHS employees that provides guaranteed retirement income and [death benefits](/glossary/death-in-service) outside of your estate.

NHSBSA (NHS Business Services Authority)

The NHSBSA (NHS Business Services Authority) is the government organization that administers the NHS Pension Scheme in England and Wales, including processing [death benefits](/glossary/death-in-service) and pension payments when scheme members die.

Nil-Rate Band (NRB)

The nil-rate band is the amount of your [estate](/glossary/estate)—currently £325,000—that can be passed on when you die without your beneficiaries paying inheritance tax.

No Family to Inherit

No family to inherit means you don't have relatives to leave your [estate](/glossary/estate) to, or you prefer to leave it to friends, charities, or other causes you care about.

No-Contest Clause / In Terrorem Clause

A no-contest clause (in terrorem clause) is a [will](/glossary/will) provision that causes a beneficiary to forfeit their inheritance if they challenge the will and the clause is triggered, with the gift passing to an alternative beneficiary.

Nomination Form (NHS)

An NHS pension nomination form is a document that tells the NHS Pension Scheme who you want to receive death benefits from your pension, though the scheme trustees make the final decision.

Non-compete Clause

A non-compete clause is a contractual restriction preventing someone from competing with a business for a specified period, commonly found in shareholders' agreements and [partnership](/glossary/partnership) agreements that affect business succession when an owner dies.

O

Oath (Executor/Administrator)

The [executor](/glossary/executor)'s or administrator's oath was the traditional sworn declaration required when applying for probate, replaced since November 2018 by a simpler signed statement of truth that serves the same legal purpose.

Office of the Public Guardian (OPG)

The Office of the Public [Guardian](/glossary/guardian) (OPG) is the UK government body that registers Lasting Powers of Attorney, supervises court-appointed deputies, and protects people who may lack mental capacity to make certain decisions.

Online Business

An online business is a business that operates primarily through the internet, including e-commerce stores, digital services, content platforms, and web-based enterprises that generate income through online channels.

Online Will Service

An online will service is a digital platform that helps you create a legally valid [will](/glossary/will) by answering questions online, then generating a document you must print, sign, and witness.

Organ Donation

Organ donation is the decision to allow your organs and tissue to be used to save or improve others' lives after your death, governed by UK opt-out consent laws and family consultation.

Overseas Property

Overseas property is [land](/glossary/immovable-property) or buildings you own in another country, which is typically governed by that country's inheritance laws rather than UK law when you die.

P

Parental Gifts Trust

A parental gifts trust is any trust arrangement where a parent transfers [assets](/glossary/assets) to their unmarried child under 18, subject to special UK tax rules that attribute trust income over £100 annually back to the parent.

Parental Responsibility

Parental responsibility is the legal right and duty to make important decisions about a child's upbringing, including education, medical care, and where they live, and to provide for their welfare until they turn [18](/glossary/age-of-majority).

Partial Intestacy

Partial [intestacy](/glossary/intestacy) occurs when someone dies with a valid will that doesn't dispose of all their assets, causing the undistributed portion to pass according to intestacy rules rather than their wishes.

Partnership

A partnership is a business structure where two or more people share ownership, profits, and unlimited personal liability for business [debts](/glossary/liabilities) without forming a separate legal entity.

Partnership Dissolution

[Partnership](/glossary/partnership) dissolution is the legal ending of the partnership relationship between business partners, triggering a winding up process to settle debts and distribute remaining assets according to the partnership agreement or Partnership Act 1890.

Password Manager

A password manager is a secure application that stores all your online account passwords in one encrypted vault, protected by a single master password you create.

Pecuniary Legacy

A pecuniary legacy is a fixed sum of money that you leave to a specific person or charity in your [will](/glossary/will), such as "£10,000 to my nephew James" or "£5,000 to the RSPCA."

Pension

A pension is a retirement savings arrangement where contributions are invested during your working life to provide income and lump sums when you retire, with favorable tax treatment and [estate planning](/glossary/estate-planning) benefits.

Pension Credit (Divorce)

A pension credit ([divorce](/glossary/divorce)) is pension rights awarded to an ex-spouse or civil partner under a court pension sharing order, creating an independent pension in their own name following divorce.

Pension Nomination

A pension nomination (or expression of wish) is a form telling your pension provider who should receive your pension savings if you die, though trustees make the final decision.

Pensionable Pay

Pensionable pay is the portion of your NHS salary used to calculate your pension contributions and benefits, including your basic pay plus certain regular allowances but excluding overtime for full-time staff and bonuses.

Pensioner Member

A pensioner member is someone who is currently receiving regular pension payments from a pension scheme and is no longer actively building up new pension benefits in that scheme.

Per Capita

Per capita is a distribution method where your [estate](/glossary/estate) is divided equally among all living beneficiaries in a specified group, with no share passing to a deceased beneficiary's children.

Per Stirpes

Per stirpes is a distribution method in [wills](/glossary/will) where each family branch receives an equal share, with deceased beneficiaries' children inheriting their parent's portion equally between themselves.

Periodic Charge

A periodic charge is [inheritance](/glossary/inheritance) tax of up to 6% that trustees must pay every ten years on certain trust assets exceeding the nil-rate band, primarily affecting discretionary trusts.

Personal Chattels

Personal [chattels](/glossary/chattels) are your tangible movable belongings—like furniture, jewellery, vehicles, artwork, and pets—excluding money, business assets, and items held purely as investments.

Personal Representative

A personal representative is the person (or people) with legal authority to administer a deceased person's [estate](/glossary/estate), either as an executor named in the will or an administrator appointed when there's no will.

Pilot Trust

A pilot trust is a discretionary trust created during your lifetime with a nominal sum (typically £10) that sits dormant until substantial [assets](/glossary/assets) are added, usually via your will or pension benefits.

Post-nuptial Agreement

A post-nuptial agreement is a written contract created after marriage that sets out how a couple will divide their [assets](/glossary/assets), property, and finances if they divorce or separate.

Potentially Exempt Transfer (PET)

A Potentially Exempt Transfer (PET) is a gift made during your lifetime to another person that becomes completely exempt from [Inheritance](/glossary/inheritance) Tax if you survive for seven years after making it.

Power of Appointment

A power of appointment is the legal authority to decide how trust [assets](/glossary/assets) are distributed among beneficiaries, including the discretion not to distribute them at all.

Power of Attorney vs Executor Difference

The key difference is that an attorney (under power of attorney) manages your affairs while you're alive, whereas an [executor](/glossary/executor) manages your estate after you die—these are separate roles with different legal authority and timing.

Power Reserved

Power reserved is a legal mechanism allowing a named [executor](/glossary/executor) to temporarily step back from estate administration while retaining the right to apply for probate and become actively involved later.

Pre-emption Rights

Pre-emption rights are legal provisions giving existing shareholders the first opportunity to purchase new or existing [shares](/glossary/company-shares) in a company before they can be offered to outsiders, protecting shareholders from dilution and unwanted third-party involvement.

Pre-nuptial Agreement

A pre-nuptial agreement (prenup) is a written contract signed before marriage that sets out how [assets](/glossary/assets) and finances will be divided if the couple divorces, which UK courts give "decisive weight" if properly executed.

Pre-Owned Asset Tax (POAT)

Pre-Owned Asset Tax (POAT) is an annual income tax charge on people who continue benefiting from [assets](/glossary/assets) they previously owned or funded after giving them away.

Premium Bonds

Premium Bonds are a UK government savings product where each £1 invested receives a unique number entered into monthly prize draws for tax-free cash prizes instead of earning interest, with your capital guaranteed and accessible anytime.

Presence

Presence is the legal requirement that the [testator](/glossary/testator) and both witnesses must be physically in the same location at the same time, able to see each other during the will signing process.

Private Key (Crypto)

A private key in cryptocurrency is a secret alphanumeric code (typically 64 hexadecimal characters) that proves ownership of cryptocurrency and authorizes transactions—if lost or stolen, the associated funds are permanently lost or transferred.

Probate

Probate is the legal authority that allows [executors](/glossary/executor) to access, manage, and distribute a deceased person's money, property, and possessions according to their will or intestacy rules.

Probate Fees

[Probate](/glossary/probate) fees are the court charges paid to HM Courts & Tribunals Service when applying for a grant of probate or letters of administration to manage a deceased person's estate.

Probate Registry

A [probate](/glossary/probate) registry is a court office where executors and administrators apply for legal authority to manage a deceased person's estate, receiving either a grant of probate or letters of administration.

Professional Negligence (Will Drafting)

Professional negligence in will drafting occurs when a [solicitor](/glossary/solicitor) or will writer breaches their duty of care through errors, omissions, or delays that cause financial loss to the testator, their estate, or intended beneficiaries.

Property and Financial Affairs LPA

A Property and Financial Affairs LPA is a legal document that authorizes trusted people (attorneys) to manage your money, property, and financial matters when you're unable to or choose to delegate these decisions.

Property Protection Trust

A Property Protection Trust is a Life Interest Trust that protects your share of a property for chosen [beneficiaries](/glossary/beneficiary) while allowing someone else (typically your spouse) to live there.

Proprietary Estoppel

Proprietary estoppel is an equitable remedy that grants property rights to someone who relied on a promise or assurance about inheriting or acquiring property, and suffered detriment as a result.

Protecting Children from First Marriage

Protecting children from first marriage refers to legal strategies that ensure children from a previous relationship receive their intended [inheritance](/glossary/inheritance) when a parent remarries, despite automatic will revocation and the risk that a surviving spouse may alter estate plans.

Protective Trust

A protective trust gives a [beneficiary](/glossary/beneficiary) the right to trust income unless triggering events like bankruptcy occur, when it automatically converts to a discretionary trust to safeguard assets.

Q

Qualifying Partner (NHS Context)

A qualifying partner (NHS context) is an unmarried partner who can receive NHS pension survivor benefits if they've lived with the NHS scheme member in a committed, financially interdependent relationship for at least two years before the member's death.

Qualifying Partner (NHS Pension)

A qualifying partner is an unmarried long-term partner who can receive NHS pension [death benefits](/glossary/death-in-service) after you die, provided you've formally nominated them and your relationship meets the scheme's eligibility requirements.

Quick Succession Relief

Quick Succession Relief is an [inheritance](/glossary/inheritance) tax relief that reduces tax when someone dies within five years of inheriting assets that were already taxed.

R

Reasonable Financial Provision

Reasonable financial provision is the amount of support from an [estate](/glossary/estate) that the law considers a deceased person should have left to certain family members or financial dependants.

Receipt and Discharge

A receipt and discharge is a document signed by a [beneficiary](/glossary/beneficiary) confirming they've received their inheritance and releasing the executor from further responsibility for that distribution.

Receiving Inheritance (Beneficiary Perspective)

Receiving an [inheritance](/glossary/inheritance) means getting the money, property, or possessions someone has left you in their will, typically 6-9 months after their death once the executor has completed all legal and financial requirements.

Rectification

Rectification is a court-ordered correction to a [will](/glossary/will) that doesn't express the testator's intentions due to clerical errors or misunderstanding of instructions during drafting.

Reduced IHT Rate (36%)

The reduced [IHT](/glossary/inheritance-tax) rate is a lower inheritance tax rate of 36% (instead of 40%) that applies when you leave at least 10% of your baseline estate to qualifying UK charities.

Registration (LPA)

Registration is the mandatory process of submitting your completed Lasting Power of Attorney to the Office of Public [Guardian](/glossary/guardian) to make it legally valid and usable by your attorneys.

Relevant Property Trust

A Relevant Property Trust is any trust subject to special [inheritance](/glossary/inheritance) tax charges when assets enter, every 10 years, and on distribution—typically discretionary trusts created since 2006.

Remainderman

A remainderman is the person entitled to receive trust property after a life tenant's interest ends, typically when the life tenant dies.

Remote Witnessing

Remote witnessing was a temporary COVID-19 measure (31 January 2020 to 31 January 2024) allowing video call witnessing. This is no longer permitted in England and Wales.

Removal of Executor

Removal of [executor](/glossary/executor) is a court-ordered process under Section 50 of the Administration of Justice Act 1985 whereby the High Court terminates an executor's appointment and appoints a substitute when necessary to protect beneficiaries' interests and ensure proper estate administration.

Rental Income

Rental income is the money you receive from letting out a property to tenants, including rent payments, [service charges](/glossary/service-charge), and any deposits retained for damage or unpaid bills.

Renunciation (Executor)

[Executor](/glossary/executor) renunciation is the formal process by which a person named as executor in a will permanently declines the role before starting any estate administration work, completing Form PA15 to give up all executor rights.

Renvoi

Renvoi is a legal doctrine that determines which country's laws apply to your [estate](/glossary/estate) when you have assets or connections in multiple countries, resolving conflicts between different legal systems.

Repatriation of Assets

Repatriation of [assets](/glossary/assets) is the process of transferring a deceased person's overseas property, money, and investments back to the UK so executors can distribute them to beneficiaries.

Replacement Attorney

A replacement attorney is a backup person named in a Lasting Power of Attorney who automatically steps in if one of the original attorneys can no longer act on the donor's behalf.

Reserved Powers Trust

A reserved powers trust is a trust where the settlor retains specific control powers (such as directing investments or appointing trustees) rather than transferring complete authority to trustees—primarily used in offshore jurisdictions with protective legislation.

Residence Nil-Rate Band (RNRB)

The Residence Nil-Rate Band (RNRB) is an additional £175,000 [inheritance](/glossary/inheritance) tax allowance when you leave your home to children or grandchildren, potentially increasing tax-free inheritance to £500,000.

Residuary Beneficiary

A residuary [beneficiary](/glossary/beneficiary) is someone who inherits whatever remains of an estate after all debts, taxes, funeral costs, and specific gifts have been paid—often the largest portion.

Residuary Estate / Residue

The residuary [estate](/glossary/estate) (or residue) is everything left in your estate after all debts, taxes, expenses, and specific gifts in your will have been paid and distributed.

Restrictions and Conditions (LPA)

Restrictions and conditions are provisions you can add to a Lasting Power of Attorney that control what your attorneys must do, cannot do, or should consider when making decisions on your behalf.

Restrictive Covenant

A restrictive covenant is a legally binding contractual promise not to do something specific, commonly used to prevent competition with a business or restrict how property or [land](/glossary/immovable-property) can be used.

Revocation

Revocation is the legal cancellation of a [will](/glossary/will), making it void, either through deliberate actions like creating a new will or automatically when you marry or enter a civil partnership.

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Safeguarding

Safeguarding is the legal protection provided to [vulnerable adults](/glossary/vulnerable-adult) who have care and support needs and cannot protect themselves from abuse, neglect, or exploitation.

Sailors Wills

A sailor's will (or privileged will) is a [will](/glossary/will) made by mariners or seamen at sea that remains valid without witnesses, written formalities, or the usual age requirements under UK law.

Same-Sex Couple

A same-sex couple is two people of the same gender in a relationship, who have identical legal rights to opposite-sex couples when married or in a [civil partnership](/glossary/civil-partner) under UK law.

Scheme Administrator (Pension)

A scheme administrator is the person or organization legally responsible for running a pension scheme on a day-to-day basis, including processing contributions, keeping records, and deciding who receives [death benefits](/glossary/death-in-service).

Scotland vs England Will Differences

Scotland and England operate under separate legal systems with different rules for wills, including how many witnesses are needed, who can inherit, and whether spouses and children have automatic entitlement to part of your [estate](/glossary/estate).

Second Home

A second home is any residential property you own in addition to your [main residence](/glossary/main-residence), such as a holiday home, vacation property, or inherited house, which has distinct tax and estate planning implications.

Second Marriage

Second marriage (or remarriage) is when someone marries again after a previous marriage ended through [divorce](/glossary/divorce), annulment, or death of their spouse, creating important estate planning considerations for blended families.

Separation

Separation is when married couples or civil partners live apart, either informally by agreement or formally through a court order, while remaining legally married or partnered.

Service Charge

A service charge is a variable annual fee paid by [leasehold](/glossary/leasehold) property owners to cover the cost of maintaining the building, communal areas, insurance, and management services.

Settlement (Dispute)

A settlement (dispute) is a legally binding agreement reached between parties in a [will](/glossary/will) or inheritance dispute to resolve their disagreement without going to court.

Settlor

A settlor is the person who creates a trust by transferring their [assets](/glossary/assets) into it and setting the rules for how those assets should be managed and distributed to beneficiaries.

Settlor-Interested Trust

A settlor-interested trust lets the settlor, their [spouse](/glossary/spouse), civil partner, or minor children benefit, so anti-avoidance rules tax all trust income as the settlor's personal income.

Seven-Year Rule

The Seven-year rule means that gifts you make during your lifetime become completely free from [Inheritance](/glossary/inheritance) Tax if you survive for at least seven years after making them.

Severance of Tenancy

Severance of tenancy is the legal process of changing property ownership from joint tenants (where the survivor inherits automatically) to tenants in common (where each owner can leave their share in their [will](/glossary/will)).

Share Valuation

Share valuation is the process of determining what [company shares](/glossary/company-shares) are worth for inheritance tax and probate purposes, using HMRC-approved methods based on whether shares are publicly traded or privately held.

Shareholders' Agreement

A shareholders' agreement is a private contract between company shareholders that sets out how the business will be run, how [shares](/glossary/company-shares) can be transferred, and what happens when a shareholder dies or wants to exit.

Small Estates (No Probate Required)

A small [estate](/glossary/estate) is one where the total value of assets is low enough that the executor can access funds and administer the estate without obtaining a formal grant of probate.

Small Gifts Exemption

The small gifts exemption allows you to give up to £250 to unlimited [recipients](/glossary/beneficiary) each tax year without inheritance tax, provided you haven't used another exemption for the same person.

Social Media Account (Estate Context)

A social media account in [estate](/glossary/estate) context is an online profile (Facebook, Instagram, X, etc.) held under license that cannot be inherited, but may be memorialised or deleted according to the platform's policies.

Sole Trader

A sole trader is someone who runs their own business as an individual, with no [legal separation](/glossary/separation) between the person and the business, meaning they're personally responsible for all business debts.

Solicitor

A solicitor is a qualified legal professional regulated by the Solicitors Regulation Authority who provides expert legal advice, including will writing and [estate planning](/glossary/estate-planning).

Specific Legacy

A specific legacy is a gift in your [will](/glossary/will) of a particular item you own, such as "my diamond engagement ring" or "my 2020 Audi Q5", identified by describing the specific asset with possessive language.

Spouse

A spouse is your husband or wife—someone you are legally married to under UK law, giving you significant [inheritance](/glossary/inheritance) rights, tax exemptions, and legal protections.

Spouse Exemption

[Spouse](/glossary/spouse) exemption is an Inheritance Tax relief that allows married couples and civil partners to pass unlimited assets to each other tax-free during life or on death.

Standing Search

A standing search is a formal request to the [Probate](/glossary/probate) Registry to automatically notify you if a grant of probate or letters of administration is issued for a specific deceased person's estate within a six-month period.

Standing to Challenge

Standing to challenge (locus standi) is the legal right to contest a [will](/glossary/will) or claim against an estate if you would benefit financially from the challenge succeeding.

Statute of Limitations

A statute of limitations (or limitation period) is the legally defined deadline by which you must take court action to challenge a [will](/glossary/will), claim from an estate, or pursue other legal remedies.

Statutory Advertisements

Statutory advertisements are public notices that executors place in [The Gazette](/glossary/the-gazette) and local newspapers to find unknown creditors and beneficiaries, protecting themselves from personal liability for claims made after distributing the estate.

Statutory Legacy

Statutory legacy is the fixed sum (currently £322,000) that a surviving [spouse](/glossary/spouse) or civil partner automatically receives when someone dies without a valid will and has children.

STEP (Society of Trust and Estate Practitioners)

STEP is the global [professional body](/glossary/law-society) for inheritance specialists. Full members earn the TEP designation after passing exams and demonstrating expertise in trusts and estate planning.

Step-child

A step-child is the [son](/glossary/child-children) or daughter of your spouse or partner from a previous relationship who does not have automatic inheritance rights unless specifically named in your will or legally adopted.

Stocks and Shares

Stocks and [shares](/glossary/company-shares) are units of ownership in companies (also called equities or securities) that form part of your estate and must be identified, valued, and distributed according to your will.

Succession Law (International)

International succession law is the set of legal rules determining which country's [inheritance](/glossary/inheritance) laws apply to your estate when you have assets or connections in multiple countries.

Suspicious Circumstances

Suspicious circumstances are red flags surrounding how a [will](/glossary/will) was made that require the person defending the will to prove it genuinely reflects the testator's wishes.

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Tag-Along Rights

Tag-along rights are contractual provisions in shareholders' agreements that allow minority shareholders to sell their [shares](/glossary/company-shares) alongside majority shareholders on the same terms when a sale to a third party occurs.

Taper Relief

Taper relief is a sliding-scale tax reduction on large gifts made 3-7 years before death, reducing the [inheritance](/glossary/inheritance) tax payable (not the gift's value) based on how long the donor survived.

Tax Year

The tax year is the 12-month period from 6 April to 5 April that [HMRC](/glossary/hmrc) uses to assess your tax liability and reset annual allowances and exemptions.

Tenants in Common

Tenants in common is a property ownership structure where each co-owner holds a separate, identifiable share that can be left to [beneficiaries](/glossary/beneficiary) in their will, rather than automatically passing to surviving co-owners.

Testamentary Capacity

Testamentary capacity is the legal requirement to understand making a [will](/glossary/will), know what you own, recognise who should benefit, and not be influenced by mental disorder.

Testamentary Expenses

Testamentary expenses are the costs incurred by executors when administering an [estate](/glossary/estate), including probate fees, professional fees, and other reasonable expenses necessary to collect assets, pay debts, and distribute inheritances.

Testator

A testator is the person who creates and signs a [will](/glossary/will), deciding how their estate (money, property, and possessions) should be distributed after they die.

The Gazette

The Gazette is the UK's official public record where [executors](/glossary/executor) can publish notices about deceased estates to protect themselves from personal liability for unknown creditors.

Timeshare

A timeshare is a property ownership arrangement or contractual right that allows you to use holiday accommodation for a specific period each year, usually carrying ongoing maintenance fee obligations.

Title Deeds

Title deeds are legal documents showing property ownership history, including conveyances, mortgages, and leases. Since 1990, UK residential properties are registered digitally with [HM Land Registry](/glossary/land-registry), which holds the official ownership record.

Transferable Nil-Rate Band (TNRB)

The Transferable Nil-Rate Band (TNRB) allows married couples and [civil partners](/glossary/civil-partner) to combine their £325,000 inheritance tax allowances, potentially passing up to £650,000 to beneficiaries tax-free.

Treasury Solicitor

The Treasury [Solicitor](/glossary/solicitor) is the senior government legal official who administers estates when someone dies without a will and has no entitled relatives, acting on behalf of the Crown in England and Wales.

Trust

A trust is a legal arrangement where [assets](/glossary/assets) are held and managed by trustees for the benefit of chosen beneficiaries, according to instructions set by the person who created the trust.

Trust Deed

A trust deed is the legal document that creates a lifetime trust and sets out how the trust [assets](/glossary/assets) should be managed and distributed to beneficiaries.

Trust Fund

A trust fund is the collection of [assets](/glossary/assets)—such as money, property, or investments—held and managed by trustees for the benefit of named beneficiaries according to specific rules set by the settlor.

Trust Protector

A trust protector is a person or organisation appointed to oversee trustees and ensure they manage a trust according to the settlor's wishes, with powers to appoint or remove trustees or veto major decisions.

Trust Registration Service

The Trust Registration Service (TRS) is [HMRC](/glossary/hmrc)'s online register where trustees must record details about most UK trusts to comply with anti-money laundering regulations and tax reporting requirements.

Trustee

A trustee is a person or organisation you appoint to manage money or [assets](/glossary/assets) held in trust, with legal responsibility to use them solely for your beneficiaries' benefit.

Two-Factor Authentication (2FA) Estate Issues

Two-factor authentication (2FA) [estate](/glossary/estate) issues are the access barriers executors face when managing accounts that require the deceased person's phone, biometric data, or physical security key.

U

Undue Influence

Undue influence is coercion that overpowers a person's free will when making a [will](/glossary/will), forcing them to include provisions they would not otherwise have made but for that pressure.

Unmarried Couple Rights

Unmarried couple rights are the extremely limited legal entitlements that cohabiting partners have regarding [inheritance](/glossary/inheritance) and estate matters in England and Wales, with no automatic inheritance rights regardless of relationship length.

Unquoted Company

An unquoted company is a company whose [shares](/glossary/company-shares) are not listed on a recognised stock exchange, including most private limited companies and businesses whose shares trade on markets like AIM.

Uplift in Base Value

Uplift in base value is the automatic resetting of an asset's taxable value to its market price at death, meaning [beneficiaries](/glossary/beneficiary) only pay Capital Gains Tax on increases after inheritance.

V

Valuation (Estate)

[Estate](/glossary/estate) valuation is the process of determining the total value of a deceased person's assets and debts at the date of death, required for probate applications and Inheritance Tax calculations.

Vested Interest

A vested interest is a guaranteed right to property or [assets](/glossary/assets) under a will or trust that cannot be taken away, even if the beneficiary must wait to receive it.

Vulnerable Adult

A vulnerable adult is someone aged 18 or over who has care and support needs that make them unable to fully protect themselves from abuse, neglect, or exploitation.

Vulnerable Beneficiary Trust

A Vulnerable [Beneficiary](/glossary/beneficiary) Trust is a tax-advantaged trust established in a will to provide financial support for a disabled person or bereaved child while protecting their means-tested benefits.