A Will is a legal document that sets out how a person’s money, property and possessions should be distributed after their death. It allows the individual to name beneficiaries, appoint executors to administer the estate, and specify any guardians for minor children. A valid Will ensures that your wishes are respected and can help reduce conflict and delays during the probate process. If you die without putting a Will in place your estate will be distributed following the laws of intestacy, which may not accord with your intentions.

The intestacy rules determine how a person’s estate is distributed when they die without a valid Will. In the UK, these statutory rules prioritise close family members in a fixed order, generally prioritising a surviving spouse and children, which may not reflect the deceased’s actual wishes. Making a Will allows you to avoid the default intestacy provisions.

An executor is an individual appointed in a Will to administer and manage the estate of the deceased according to instructions in the Will. Their responsibilities include gathering and valuing the assets, paying debts and taxes, and distributing the estate in accordance with the Will. Executors have a legal duty to act in the best interests of the estate and its beneficiaries.

The testator (male) or testatrix (female) is the person who makes a Will. They must have the capacity to understand the implications of the document and be acting of their own free will. The testator/testatrix names beneficiaries, appoints executors, and sets out instructions for the distribution of their estate.

A legacy is a gift of money or property left to a person or organisation under the terms of a Will. Legacies can be specific (a named item or sum of money) or residuary (a share of what remains after other legacies and expenses have been dealt with)

A Letter of Wishes is a non-binding document that typically accompanies a Will or Trust. It provides guidance to executors or trustees on how the person making the document would like certain aspects of their estate or trust to be managed, particularly in areas where the Will or Trust document provides discretion. While it is not legally enforceable, it can influence discretionary decisions and provide valuable insight into the testator’s wishes.

A Lasting Power of Attorney (LPA) is a legal document that allows an individual to appoint one or more people (attorneys) to make decisions on their behalf if they lose the capacity to do so, either for health and welfare or for property and financial affairs. An LPA offers peace of mind by ensuring that someone you trust can act in your best interests when you’re no longer able to.

An attorney, in the context of a Lasting Power of Attorney, is a person appointed to make decisions on behalf of someone who is no longer able to do so themselves. Attorneys must act in accordance with the Mental Capacity Act 2005 and in the best interests of the person who appointed them

A deputyship is a court-appointed role where an individual is appointed by the Court of Protection to make decisions on behalf of someone who lacks the mental capacity to manage their own affairs. Deputyships are often used when a Lasting Power of Attorney was not set up in advance.

A Trust is a legal arrangement in which assets are transferred by a person (the settlor) to one or more individuals or entities (the trustees). The trustee holds the legal title to the assets and manages them according to the terms of the trust for the benefit of others (the beneficiaries). Trusts can be used for a variety of purposes, including asset protection, estate planning, tax planning, and providing for vulnerable beneficiaries.

A settlor is the individual who creates a trust by transferring assets into it. The settlor decides the terms of the trust, including who the trustees and beneficiaries are and how the trust assets should be managed or distributed.

A trustee is a person or corporate entity responsible for managing the assets held in a trust according to its terms. Trustees have fiduciary duties to act in the best interests of the beneficiaries and must exercise their powers carefully and in accordance with the law and the trust deed..

Trustees have powers granted by the trust deed and by law, and must exercise them for the benefit of the beneficiaries. These typically include managing investments, distributing income or capital to beneficiaries, buying and selling trust assets, and appointing replacement trustees. Trustees must always act within the scope of their authority and in the best interests of the beneficiaries.

A beneficiary is an individual or entity who may derive a benefit from an estate, trust, or Will. In the context of a trust, beneficiaries may receive income, capital, or other benefits as outlined in the trust document. Being named as a beneficiary does not necessarily mean an automatic right to benefit – entitlement depends on the nature of the trust.

A protector is an individual or entity appointed to oversee or control the administration of the trust by the trustees. The protector’s role may include approving certain trustee decisions or replacing trustees. While they are not trustees themselves, protectors can provide an additional layer of oversight and reassurance, especially in complex or high-value trusts.

A trust corporation is a company that has been authorised to act as a trustee or in other fiduciary capacities and often provides professional trust administration services. Unlike individual trustees, trust corporations offer continuity, neutrality, and professional expertise, particularly useful in complex or long-term trusts.

A nominee arrangement is an agreement where one party (the nominee) holds assets on behalf of another person or entity but does not have beneficial ownership of those assets. The nominee acts in accordance with the instructions of the beneficial owner, who retains the right to any income, capital, or other benefits arising from the assets. This arrangement is often used for administrative convenience or privacy.

The HMRC Trust Register is a central record of information maintained by HM Revenue & Customs in the UK relating to trusts. It records details of express trusts, including information about the settlor, trustees, and beneficiaries. Registration is mandatory for most taxable trusts and also for many non-taxable trusts. The register is part of the UK’s anti-money laundering compliance obligations.

The Inheritance Tax Nil Rate Band is the threshold up to which an estate can be passed on without incurring a charge to Inheritance Tax. As of current UK law, the nil rate band is £325,000 per individual. Amounts above this threshold may be taxed at 40%, subject to various reliefs and exemptions.

The Residential Nil Rate Band (RNRB) is an additional allowance for Inheritance Tax, of up to £175,000, applied where a person leaves their home to direct descendants, such as children or grandchildren. It is applied on top of the standard Nil Rate Band, subject to conditions, and can significantly increase the amount that can be passed tax-free.

The transferable nil rate band (TNRB) allows any unused portion of the inheritance tax nil rate band from a deceased spouse or civil partner to be transferred to the surviving spouse or civil partner. This applies when the first death did not use up their full nil rate band, such as where assets passed exempt from inheritance tax to the surviving partner. The combined allowance can significantly increase the amount that can be passed on free of inheritance tax on the second death.

A Potentially Exempt Transfer enables an individual to make gifts of unlimited value which will become exempt from Inheritance Tax if the person making the gift survives for seven years from the date of the gift. PETs are commonly used in estate planning to reduce future tax liability.

Capital Gains Tax (CGT) is a tax on the profit made when selling or disposing of an asset that has increased in value. The tax is payable on the gain, not the total amount received. CGT may apply to individuals, trustees, and personal representatives in various contexts, including the sale of property, shares, and other investments.

ATED is an annual tax payable by companies, partnerships with corporate members, and certain collective investment schemes that own UK residential property valued above a certain threshold.