Article written by Jeremy Brooks, Private Client Solicitor
Legal terms are used in formal documents such as Wills to ensure clarity. The terms used are designed to avoid ambiguity to those who need to interpret the document.
In this update, we explore some of the words you are likely to hear when sitting down to make your Will with your legal advisor.
Testator
The person making the Will.
Executor
The person appointed in your Will to administer your estate upon your death.
They are responsible for identifying the assets and debts of the estate. They will distribute the estate following the directions expressed in the Will. Where you need to apply to the Probate Registry for a Grant of Probate, it is the executors who have the responsibility to do this.
You can have more than one executor and they can either act jointly or as substitutes should one or more of their number die before you do.
Beneficiary
This is the person or organisation(s) who will benefit from your Will.
Trustee
Sometimes a Trust is set up within a Will. This may be expressed as leaving an interest to someone for the rest of their lives – this is known as a life interest trust. Other trusts expressly created by Wills include Discretionary Trusts or Disabled Person’s Trusts. However, it is also possible for a trust to be created by implication – this is most common where the beneficiary is under 18. The trustees are entrusted with looking after the asset or money until the purpose of the trust has come to an end – because the beneficiary has now reached 18, or the person with the life interest has died.
Issue
When this term is used in a Will, it refers to the children, grandchildren and direct descendants of the person named in the Will.
Guardians
If you have children under 18, you can appoint a guardian to look after them until they reach 18.
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 less the debts or other liabilities due. Sometimes this is called the net estate.
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 or a car.
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
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.
Residue
The residue in a Will is everything that is left in the estate after debts, bequests and legacies have been dealt with.
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.
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 should ask your solicitor to explain it to you.
For further advice on Wills or to discuss a Private Client matter further, please feel free to email me or contact the team on 020 8858 6971.