Probate and Estate Administration Glossary

When dealing with an estate administration, it can feel like trying to learn a new language, especially when legal and (seemingly) antiquated terminology is used so frequently.   

Our Probate glossary below explains the most common terms you may come across during an estate administration process:

Roles and Titles 

Administrator 

An administrator is a person who takes out a Grant of Letters of Administration to act in the administration of an estate when there is no Executor appointed under a Will. 

Confusingly, sometimes this is used interchangeably with “Personal Representative” and “Executor”.  

Beneficiary

A beneficiary is someone who inherits from an estate. This term covers everyone who receives assets in this way.  

Executor/Executrix 

An executor (“executrix” is the feminised term) is a person named in a Will who has legal authority to administer an estate.  

Guardian 

A person legally appointed under the Will to look after minor children if their parents die.   

Issue 

Usually used in Wills with more traditional wording. This means all direct lineal descendants of a person, including children, grandchildren and great-grandchildren.  

Legatee 

A legatee is a specific type of beneficiary who is explicitly named in a Will to receive a particular type of gift, such as money or jewellery.  

Pecuniary legatees have been given gifts of money.  

Specific legatees have been given (funnily enough!) specific gifts. This usually means an identifiable asset, such as a car or a piece of jewellery.  

When a legacy is “contingent”, it means a legatee needs to reach a certain age or have met certain criteria before they can have their gift.  

Personal Representatives (PRs) 

This is a catch-all term which includes executors and administrators.  

Testator/Testatrix 

A testator (“testatrix” is the feminised term) is the individual who wrote and signed the Will.  

Witness  

An independent individual who watches the testator sign their Will and then signs themselves to validate it.  

Under English and Welsh law, a Will must be signed by two witnesses at the same time.  

Legal Documents 

Caveat 

This is a formal notice lodged at the Probate Registry to prevent a Grant of Probate or Letters of Administration being issued. There is a process to be followed to get a caveat removed, so please do get in touch with the Probate team if you need assistance with this.  

Codicil 

An official legal document which adds to or amends an existing Will.  

Deed of Variation 

A deed of variation allows beneficiaries to alter the way an estate is distributed after the Testator has died.   

There are restrictions on how this can be used, so please talk to us if you wish to know more.  

Grant of Probate 

An official Court document which confirms an Executor’s appointment in a Will and gives formal legal authority for them to deal with the estate.  

Grant of Letters of Administration 

An official Court document which confirms an Administrator’s appointment to administer an estate where there is no valid Will.  

There are certain tasks in an administration that an Administrator can only do once the Grant of Letters of Administration has been obtained.  

In contrast, an Executor’s powers come from their appointment under a Will, so they can do more before the Grant has been obtained. If you are an Administrator under an estate, please talk to us about this.  

Will 

A formal legal document detailing how a person wants their estate to be distributed after their death.  

Assets and the Estate 

Assets  

Everything the deceased person owned that holds a value. Property, bank accounts, investments and personal belongings.  

Chattels 

Personal, tangible, moveable possessions. This includes, but is not limited to, jewellery, furniture, household contents, vehicles, bikes, boats, antiques, works of art, books, stamps, coins, collections. And even pets.  

Estate 

This is the collective term for all the assets, property, money and property, as well as any debts that a deceased person owned when they died.  

Joint Tenants 

A form of property co-ownership where the surviving owner automatically inherits the deceased’s share. This form of property cannot be gifted under a Will unless the ownership is severed.  

Life Interest 

The right to use an asset or receive income from it for the duration of a person’s lifetime.  

This sort of interest can affect the life tenant’s own inheritance tax planning, so please do talk to us if this is a concern.  

Life Tenant 

A beneficiary who holds a life interest in an asset or property.  

Residuary Estate 

This is what remains after all liabilities, tax, specific gifts and legacies have been paid out during an administration. Complications can arise if this is not dealt with properly. For example, there could be no residuary estate because the tax, gifts and legacies exceed what is available. Other problems can arise when a residuary estate has not been accounted for correctly in a Will.  

Tenants in Common 

A form of property co-ownership where each person owns a specific share of the property and can leave their share under their Will.  

Trust 

A legal arrangement where Trustees hold and manage property and assets for the benefit of beneficiaries.  

These can be complex and require detailed advice so, if you have been appointed as a Trustee, please talk to us so we can guide you through the process.  

Trustee  

A person appointed to manage and look after assets held within a Trust. There are lots of personal legal duties and responsibilities involved in acting as a Trustee, so do talk to us if you want guidance or advice about this.  

Process and Financial Terminology 

Administration Period 

This is the period between the date of death and the date when the estate is able to be finally distributed to the residuary beneficiaries.  

Disbursements 

These are third-party expenses or costs paid out of the estate during the administration process. This can include court fees (such as when applying for the Grant); statutory advertisement costs and insurance.  

Estate Accounts 

At the conclusion of an administration, a Personal Representative has a duty to report the estate’s values and distributions to the beneficiaries. This includes tracking all assets, liabilities, expenses and income and the payment of gifts, legacies and residue. 

Excepted Estate 

An estate that does not require a full inheritance tax account to be filed with HMRC, because it is low-value or exempt from this process.  

Insolvent Estate 

An estate where the liabilities and debts exceed the value of the assets.  

There are specific processes to follow in these cases, so please do get in touch if you need further advice with an insolvent estate.  

Intestacy/Intestate 

When someone dies without a valid Will, they die “intestate” and their estate will be distributed in accordance with the Government’s Intestacy Rules.  

Inheritance Tax 

This is a tax payable to HMRC and is dependent on the value of the estate, what possible reliefs are available to mitigate a liability, and what the deceased has done during their lifetime (such as making gifts, setting up trusts or making chargeable transfers).  

It is mostly associated only with a deceased estate. However, there are circumstances where IHT is paid during someone’s lifetime. Please talk to us if you wish to understand more about this.  

Nil Rate Band 

The amount available which has a 0% inheritance tax rate. Anything over an above an available Nil Rate Band will pay inheritance tax.  

Residence Nil Rate Band 

An additional inheritance tax allowance available when a main family property passes to direct descendants. Even if there is no property in the estate when someone dies, this may still be available, so please talk to us if you want to discuss this further.  

Testamentary Capacity 

The minimum mental fitness required by law for a person to be able to make a valid Will.  

Valuation  

The process of calculating the open-market financial value of the assets and liabilities on the date of death.  

How can we help

If you need help navigating the probate and estate administration process, our expert Probate lawyers can help guide you through the whole process and can answer any questions you have. View our services and get in touch here.