Handling an estate after someone passes away can be overwhelming, especially with all the legal terminology involved. To make the probate and administration process clearer, we've compiled some of the most commonly used terms and their explanations.
Administrator – deals with the winding up of the estate of someone who died without leaving a Will. This is generally a beneficiary of the estate.
Assets – all items owned by the deceased, to include money, property, investments and valuables.
Beneficiary – someone who will inherit from the deceased’s estate.
Bequest – a gift left to someone in a Will.
Chattel – personal property, other than money, securities or business assets. For example, personal possessions such as jewellery or cars.
Codicil – a legal document that can be added to a Will, amending or adding to its provisions.
Estate – All of the assets left by the deceased. The estate could include property, bank accounts, investments, valuable items, vehicles, pets and other personal possessions.
Estate administration – finalisation or winding up of the deceased’s affairs. It is carried out by the administrators or executors and involves obtaining a Grant of Probate or Grant of Letters of Administration where necessary, paying all debts and other liabilities, calculating and paying Inheritance Tax, valuing the estate, collecting in the assets, selling property, preparing detailed estate accounts and distributing the estate to the beneficiaries.
Estate accounts – the detailed accounts covering all financial transactions since the date of death. These are prepared by the administrator or executor or their legal representative and will include payment of debts, sale of assets and any expenses paid.
Excepted estate – An estate where Inheritance Tax is not payable, for example, because of exemptions or because it falls below the Inheritance Tax threshold.
Executor – deals with the administration of the deceased’s estate. An executor is appointed by the deceased in their Will.
Grant of Letters of Administration – the legal document issued by the Probate Registry giving an administrator legal authority to administer the deceased’s estate. This is the document needed where the deceased did not leave a Will.
Grant of Probate – the legal document issued by the Probate Registry giving an executor legal authority to administer the deceased’s estate. This is the document that the executor will need to apply for where the deceased left a Will.
Inheritance Tax – tax payable on the value of an estate when this is above a set level. It is the responsibility of the administrator or executor to calculate and pay Inheritance Tax.
Intestacy – where the deceased died without leaving a Will.
Life Interest - The right to enjoy for life (or until a specified time period has elapsed or a triggering event has occurred). This can be either money or property which will eventually revert to the original estate in some way on death. Instructions are usually included in the original deceased's Will as to what should happen to the gift when the life interest ends.
Legacy – another word for bequest, this is a gift left to someone in a Will.
Legatee – someone who is receiving a legacy.
Personal representative – the estate administrator or executor.
Power reserved – where someone who is named as an executor decides not to take up the role but reserves their right to do so at a later stage.
Predeceased - someone who dies before the person who has made the Will.
Probate – this is often used to refer to the whole estate administration process as well as to the Grant of Probate itself.
Probate Registry – this is the court service that the administrator or executor will need to send their application for a Grant of Probate or Letters of Administration to. The Probate Registry deals with the application and will issue a Grant.
Residuary estate / residue – the part of the estate that is left after all debts and liabilities have been discharged and all specific gifts have been made.
Rules of Intestacy – when someone dies without a Will, their estate is distributed to beneficiaries in the order listed in the Rules of Intestacy. These rules set out those who are entitled to inherit in a set order of preference, starting with the deceased’s spouse and children.
Testator / testatrix – the person who made the Will.
Trustee – the person who holds property on behalf of another person and is responsible for administering the trust assets.
Contact us
If you are the executor or administrator of a deceased person’s estate and would like some assistance in dealing with the administration, please contact us by email at privateclient@baker-law.co.uk or by phone on 01252 733 770. We will be happy to arrange an appointment for you to discuss the details of the estate with one of our expert probate and estate administration lawyers at our Farnham office. We can then provide details of the next steps in the process.
This blog is provided for informational purposes only and does not constitute legal advice. Readers are encouraged to consult with a qualified lawyer for personalised guidance tailored to their individual circumstances.
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