Jargon busting – Wills

You have decided to make your will. You’ve met with your solicitor, discussed your needs and received advice. You then receive your will to review, but find it contains words you may not fully understand. Let’s look at some of those terms and remove any doubt or confusion about their meaning.

Why is jargon used in wills?

Legal terms are used in formal documents to ensure clarity. A will is a formal document. The terms used form a kind of shorthand to save lengthy explanations or repetition throughout the document. They are also used to avoid ambiguity to those who need to interpret the document.

Terms relating to people

Let’s look, first of all, at the people mentioned in a will.

The testator

The testator is the person who makes the will. They are directing what happens to their Estate when they pass away.

The executor

The Executor is the person (or organisation) you appoint to deal with the administration of your estate. They are legally responsible for dealing with the Estate under the terms of the Will. Their duties include collecting a full valuation of the Estate as at the date of death, settling any Inheritance Tax due, applying for Probate ( if there is a Will), or Letters of Administration ( should there be no Will), for example.

They are also responsible for ensuring that the Estate is distributed exactly as per the terms of the Will i.e. making sure each beneficiary ( individual/ charity), receives what they are entitled  (alongside any expenses incurred in connection with the administration of the Estate).

You can have more than one executor and they can either act jointly or as substitutes. Substitute Executor(s), can step in either if an Executor passes away, renounces ( refuses to act), or cannot act for any other reason such as due to having lost their mental capacity.

Beneficiaries

 These are the people (or organisations) who you have decided will inherit a share of your estate after your death.

Trustee

Sometimes a trust is set up within a will. The person who manages the trust is called a trustee. There may be one or more trustees.

Issue

When this term is used in a will, it refers to the children, grandchildren and great grandchildren and other descendants named or referred to in a will.

Guardians

If you have children who have not attained the legal age of an adult (18 in the UK), you can appoint Guardians in the event that their parents/ family for whatever reason are unable to care for them – such as the death of a parent whilst the children are still minors.

N.B. should a beneficiary/ beneficiaries be minors, at least two Executors must be appointed to deal with the administration.

Terms relating to money and property

 Within the will, there will be terms relating to the property and money belonging to the testator.

Estate

This is a list of all the assets you own and is essentially what you owned (both in capital and liquid cash), as at the date of death.

Assets

These are the items of value the testator owns. They are made up of property, cash and investments.

Chattels

This is another term relating to property. In this case it means an item of personal property that can be moved around. Examples of this might be personal belongings or effects, furniture and jewellery.

Bequest

This is a gift made in a will. The types of gifts contained in bequests tend to be gifts of personal property. Examples of this might be an item of jewellery, a car, a piece of antique furniture or a work of art.

Legacy

Just like a bequest, a legacy is also a gift but tends to be more wide-ranging. It covers all types of property as well as personal items and cash. Specific gifts which are of cash for a fixed amount are also called pecuniary legacies.

Residue

The residue in a will is everything that is left in the estate after debts, bequests and legacies have been dealt with, and is what will be distributed to the beneficiary/ies.

Life Interest

This is a term used when the testator decides to allow someone to use an asset during their life but where they do not receive ownership. This is commonly used in relation to a property; examples include giving a partner a lifetime interest in the property which expires should they wish to move out during their lifetime.

Conclusion

Legal terms are widely used in wills to ensure their meaning is clear and unambiguous. If you find a word or phrase in a will you do not understand or if the meaning is unclear to you, you must ask your solicitor to explain it to you.

If you would like any more information relating to this article then please feel free to contact me by telephone – 020 8221 8051, via email here, or visit my profile.

This is not legal advice; it is intended to provide information of general interest about current legal issues.