Terms Flashcards

1
Q

Abatement

A

If there is insufficient money in an Estate to pay all of the Legacies under a Will in full, each Legacy is reduced (normally proportionately) so that all Beneficiaries receive something. This reduction is referred to as Abatement.

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2
Q

Absolute Interest

A

Where a Beneficiary is immediately and, without restriction, entitled to receive the benefit due.
See Contingent Interest.

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3
Q

Accumulated Income

A

Income generated by a Trust Fund can be paid out to a Beneficiary immediately, kept to one side as a “stock pile” of undistributed income or the Trustees can decide to formally Accumulate it.
Accumulated income can be converted into capital. The Trustees will often do this if none of the Beneficiaries need the income and it is simpler for the Trustees to treat these amounts as capital along with the rest of the Trust Fund.
NB: If the Trustees “stock pile” income then it remains available to distribute to the Beneficiaries. However, it can’t be held as income indefinitely. After a certain period of time the Trustees must treat it as capital.

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4
Q

Accumulation and Maintenance Trust (A&M)

A

A type of Trust that was abolished in April 2006 but which you will find reference to. A&M Trusts were often used by parents / grandparents to benefit minor children and were taxed more leniently than other types of Discretionary Trust.

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5
Q

Ademption

A

If a specific item (e.g. a particular watch or painting) is left to someone by Will but when the Testator dies he no longer owns it, the clause in the Will cannot be given effect to and the gift has adeemed.

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6
Q

Administration

A

The process of dealing with all matters involved with the winding up and distribution of a deceased person’s Estate.

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7
Q

Administrator

A

A person appointed by court (via Non Contentious Probate Rules 1987) to Administer a person’s Estate. An Administrator (rather than Executor) is appointed when a person dies Intestate or where there is a Will, but the named Executor is not going to act.

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8
Q

AEA 1925

A

Administration of Estates Act 1925.

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9
Q

Affidavit of due execution

A

A written statement confirming that a Will was validly executed, and the person who signs the statement (usually the witnesses) formally swears as to the truth of its contents.

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10
Q

Agent

A

For purposes of Trustee Act 2000. (See also Custodian and Nominee).
A person to whom Trustees have delegated decision making powers.
An Agent will essentially step into the shoes of the Trustees and make management decisions about the Trust assets. However, he can only act in relation to the assets, and within the limits of, what is delegated to him.
E.g. A solicitor Trustee decides that Trust money should be invested in stocks and shares. However, he does not have the expertise to decide which shares to buy, when and how many. He can therefore transfer funds to a specialist fund manager who will make these decisions on his behalf. When the Agent makes decisions about the shares he has full discretionary powers. However, he would have no powers in relation to other Trust assets over which he has not been appointed Agent.
The Trustee who appoints an Agent will still be under a duty to supervise the Agent and ensure that he is an appropriate person to act. E.g. while the choice of which shares to buy and sell rests with the Agent, if his actions result in a fall in value of fund, then the Trustee would need to consider whether a different fund manager needs to be appointed instead.

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11
Q

Ancillary proceedings

A

Part of the divorce process which resolves any financial issues between the parties to the marriage.

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12
Q

Appointment out of a Trust

A

Where trust property is either paid out absolutely to a beneficiary or resettled on new trusts.

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13
Q

APR

A

Agricultural Property Relief.

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14
Q

Attestation

A

The act of acknowledging that a document has been signed by the person whose name is on the signature line. Attestation only relates to the signing process and does not guarantee the content of the document.

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15
Q

Attorney

A

Someone who a Donor legally appoints to manage their affairs on their behalf.

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16
Q

Beneficiary

A

A wide term used to describe any person (or organisation) who can benefit under a Will or from a Trust.
Includes those with Absolute, Vested and Contingent Interests as well as those who have only a hope of benefiting (rather than fixed and identifiable rights).

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17
Q

Bequest

A

General term used to mean a gift made by Will, but more often refers to a gift of personal possessions rather than real property.
See Legacy / Devise.

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18
Q

Bereaved Minors Trust

A

A Trust created by Will or Intestacy, for the Testator’s minor children who must have an Absolute Interest in the Trust property when they reach 18 and which complies with s. 71A IHTA 1984.

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19
Q

Bereaved Young Person’s Trust (also referred to as an “18-25 Trust”)

A

A Trust created by Will, for the Testator’s children who are under the age of 25 who must have an Absolute Interest in the Trust property by their 25th birthday and which complies with s. 71D IHTA 1984.
Can be used instead of a Bereaved Minor’s Trust when parents do not want their children to inherit at 18.

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20
Q

Bona Vacantia

A

Translates as “ownerless goods” and refers to assets distributed in accordance with the Intestacy Rules which end up passing to the state because there are no family members to inherit.

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21
Q

BPR

A

Business Property Relief.

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22
Q

Certificate Provider

A

The Certificate Provider is someone who must ensure that the person who wishes to make the Lasting Power of Attorney is mentally capable of making it and that there is no pressure on them to make one.

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23
Q

Chargeable Transfer

A

A transfer of value made by an individual which is chargeable to IHT. The value of the Chargeable Transfer is the actual amount / value transferred less any exemptions or reliefs that apply.
Chargeable Transfers include:
 Lifetime Chargeable Transfers (LCTs)
 Failed Potentially Exempt Transfers (PETs)
 The transfer of a person’s Estate which is
deemed to take place when they die.

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24
Q

Chattels

A

Personal property such as household and personal goods, furniture, jewellery, antiques and works of art, but NOT items used for business purposes or held solely for investment purposes. See s. 55 (1)(x) AEA 1925.

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25
Q

Clear Off

A

The process of showing that an individual is the right person to be appointed as the Administrator of an Estate.
When applying to court to be appointed, the applicant must show that no one else has priority to act i.e. “clear off” other categories of relative who would also have a claim to act as Administrator.

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26
Q

Codicil

A

A formal document that amends, rather than replaces, a Will.
Codicils are used where the Testator wants to make a small number of minor changes to his Will. When the Testator dies the instructions in his original Will, as amended by any Codicils, are put into effect.

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27
Q

Commorientes

A

The rule that applies where two or more people die in circumstances where the exact order of death is uncertain, e.g. in a road accident or plane crash. Where this happens there is a presumption that the eldest died first and the youngest last.

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28
Q

Conditional Interest

A

See Contingent Interest.

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29
Q

Contingent Interest

A

An Interest under a Will or Trust where a specific event has to happen before the Beneficiary becomes entitled.
E.g. Helen is left £10,000 under her uncle’s Will but the money can only be paid to her once she reaches 21. If her uncle dies when she is 18, Helen is not entitled to the money absolutely (she hasn’t complied with the condition attached to the gift). On her 21st birthday she has complied with the contingency, her interest Vests and the £10,000 must be paid to her immediately. Before Helen complies with the condition her interest in the gift is described as ‘contingent’.

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30
Q

Corrective Account

A

An Inland Revenue account (Form C4) which notifies HMRC of:
 assets that were not included in the IHT 400/205, or
 any adjustment to valuations previously submitted.

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31
Q

CTO

A

Capital Taxes Office. The division of HMRC that deals with IHT.

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32
Q

Cumulative Total

A

Total of all the Chargeable Transfers made in the seven years prior to the current Chargeable Transfer.

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33
Q

Custodian

A

In the context of Trustee Act 2000. (See also Agent and Nominee.)
Someone who undertakes the safe custody of some or all of the Trust assets, or of any documents or records relating to the assets. A Custodian does not exercise management powers over these assets.
E.g. if the trust held some antique furniture the Trustees may decide that it would be best looked after if it were placed in a specialist museum, where it could be safeguarded and maintained.

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34
Q

Cy-près doctrine

A

When a gift to a charitable organisation is made by Will and the charity named either no longer exists or no longer conducts the activity for which the gift is made, then the gift would ordinarily fail. However, the cy-près doctrine allows the PRs to make the gift to an organisation which comes closest to fulfilling the purpose of the original gift.

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35
Q

Death Rate

A

0% and 40% - the rate at which IHT is charged on the Taxable Estate. IHT may be charged at 0% and 36% if the estate qualifies for a reduced rate as a result of charitable donation.

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36
Q

Deed of Variation

A

Deed by which the Beneficiaries of a Will or Intestacy can change / re-direct their inheritance.
They allow family members to effectively “re-write” the deceased’s Will, often for tax planning purposes.

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37
Q

Devise

A

A gift under a Will - is normally used in relation to gifts of land.

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38
Q

Discretionary Trust

A

A Trust where none of the Beneficiaries have a Life Interest.
Instead, Trustees have discretion to decide which of a number of Beneficiaries should receive capital or income from the trust, when and how much. No Beneficiary is entitled to anything; rather each has a hope of receiving benefit and relies on the Trustees exercising discretion in his favour.
Discretionary Trusts are taxed under the Relevant Property Regime and can be referred to as Relevant Property Trusts.

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39
Q

Distribution Estate

A

All the assets that a person owns when they die which are distributed in accordance with their Will or the Intestacy Rules.
Also referred to as the Succession Estate.
The gross Distribution Estate is the total value of all these assets. The net Distribution Estate is the gross value less the debts/liabilities.

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40
Q

Domicile

A

The place where a person has their “fixed and permanent home” – where they live or intend to return to. There are three types:

Domicile of Choice (where a person has moved to a new country with the intention of settling there permanently).
Domicile of Dependency (while under the age of 16 a child has the same Domicile as the person on whom they are dependent).
Domicile of Origin: The Domicile acquired at birth (usually that of a person’s father). It need not be the country in which a person is born.
A person’s domicile affects their liability to inheritance tax and also determines the common law system that applies for succession matters.
Do not confuse with Residence.

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41
Q

Donatio Mortis Causa (DMC)

A

A gift made in contemplation of and conditional upon death. Can be referred to as a “death bed” gift.
E.g. Dennis made a Will leaving his car to his daughter Helen. Close to dying he changes his mind and tells his nephew Joe that when he dies he wants Joe not Helen to have the car. If Joe can prove the DMC, it will take precedence over the contradictory clause in the Will and he will inherit the car.

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42
Q

Donor

A

Someone who creates a Lasting Power of Attorney

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43
Q

Enduring Power of Attorney (EPA)

A

A valid Enduring Power of Attorney legally authorises Attorneys to act on the Donor’s behalf in financial matters. The authority can continue even after the Donor loses mental capacity.
Since 1 October 2007, it is no longer possible to create an Enduring Power of Attorney.

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44
Q

Estate

A

A wide term used to describe everything that a person owns or is entitled to. See Distribution Estate and Taxable Estate.

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45
Q

Estate Accounts

A

Accounts recording the financial transactions during the Administration period.
The accounts will include a list of all the deceased’s assets and their value, details of any income received and gains realised, any tax paid and the payment of Legacies to Beneficiaries.

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46
Q

Estate Rate

A

The average rate of IHT paid on the Taxable Estate.
Usually, because part of a Taxable Estate falls within the NRB and only the extra is taxed at 40% - the overall rate of IHT paid on the whole Estate will be less than 40%.

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47
Q

Excepted Estate

A

An Estate where an IHT 205, rather than IHT 400, can be returned to HMRC.
In summary, the main aspects of an Excepted Estate are where the gross taxable value:
 is less than the NRB, so no IHT is payable – a “low value estate”
 is less than £1M and no IHT is payable because spouse/civil partner/charity exemption applies – an “exempt estate”
 of UK assets held by a non-UK Domiciled person are not more than £150,000 – a “foreign domiciliary estate”.
This is not an exhaustive list.
See Inland Revenue Account.

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48
Q

Excluded Property

A

Property which is outside the charge to IHT.

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49
Q

Executor

A

Person appointed by Will to carry out the instructions in the Will and administer the deceased’s Estate. Executrix is the feminine form.

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50
Q

Executors’ Year

A

The 12 month period following death. Executors are usually expected to have dealt with the Administration of the Estate within this period.

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51
Q

Exempt Beneficiary

A

There is no IHT charge on transfers of value to Exempt Beneficiaries.
Exempt Beneficiaries include a person’s spouse or civil partner and registered charities.

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52
Q

Exit Charge

A

An IHT charge that arises when property leaves a Discretionary / Relevant Property Trust.

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53
Q

Failed PET

A

A PET where the person making the gift has died within seven years of making it.
Often referred to as the ‘seven year rule’.

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54
Q

General Legacy

A

A gift in a will of property which is not distinguished from property of a similar type.
E.g.1 ‘I GIVE to my cousin John Taylor of [address] 100ordinary shares in Tesco Plc’. If the shares are not owned by the Testator when he dies then the PRs would have to buy them. (Compare with Specific Legacy below.)
Below is an example of a Pecuniary General Legacy.
E.g.2 ‘I GIVE to my cousin John Taylor of [address] one thousand pounds £1,000.’

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55
Q

Gift with Reservation of Benefit (GROB)

A

If a person gives away an asset (e.g. transfers legal title in their house to a family member) but continues to benefit from that asset after making the gift (e.g. lives in the house without paying rent) they have “reserved benefit” in that asset and made a GROB.

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56
Q

Grant

A

See Grant of Representation.

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57
Q

Grant of Letters of Administration

A

The Grant of Representation given to the Administrators of an Estate when a person dies Intestate.

58
Q

Grant of Letters of Administration with Will annexed

A

The Grant of Representation given to the Administrators of an Estate where a person dies having made a Will, but the named Executors (if any) are not acting.

59
Q

Grant of Probate

A

The Grant of Representation given to the Executors of a Will.

60
Q

Grant of Representation

A

A court document which confirms that the PRs named on it have authority to deal with the deceased’s assets, and can, therefore, proceed with the Administration of the Estate. Often just referred to as the “grant”.
It is essential to obtain the grant as soon as possible because generally institutions holding the deceased’s assets require proof of it being issued before they will accept instructions from the PRs or their solicitors.
The main types of grants are a Grant of Probate, a Grant of Letters of Administration and a Grant of Letters of Administration with Will Annexed.

61
Q

Guardian

A

Person with legal responsibility for a minor.

62
Q

Health and Welfare LPA

A

This relates to the Donor’s health and welfare. It can allow Attorneys to, for example, take decisions regarding the Donor’s medical treatment, where they live and regarding the Donor’s daily care routine.

63
Q

HMRC

A

Her Majesty’s Revenue & Customs.

64
Q

HNW

A

Abbreviation for “High Net Worth”. HNW clients usually means those with (liquid) net assets of £1-2M +.

65
Q

I(PFD)A 1975

A

Inheritance (Provision for Family and Dependants) Act 1975.

66
Q

IHT

A

Inheritance Tax.

A tax that is charged on the value transferred by a Chargeable Transfer.

67
Q

IHT421

A

A form sent by the PRs to HMRC. HMRC receipt and return it to confirm that the IHT due (based on information in the IHT 400) has been paid. The PRs need to send the receipted IHT421 to the Probate Registry before a Grant will be issued.

68
Q

IHT 400 / 205

A

See Inland Revenue Account.

69
Q

IHTA 1984

A

Inheritance Tax Act 1984.

70
Q

Illegitimate

A

A child born to unmarried parents. See Legitimated.

71
Q

Immediate Post Death Interest (IPDI)

A

If a person’s Will contains clauses which set up a Life Interest Trust, when they die (on or after 22 March 2006) the Life Tenant becomes immediately entitled to benefit from the deceased’s Will Trust (IHTA 1984 s. 49A) and, therefore, the Life Interest is called an Immediate Post Death Interest.
IPDI are distinguished from other kinds of Life Interest (e.g. those in Inter Vivos Settlements) because different tax rules apply.

72
Q

Inland Revenue Account

A

The Form IHT 400 or IHT 205 which is submitted by the PRs to HMRC and gives details about all the deceased’s assets and any IHT due.
The IHT 205 is shorter than IHT 400 and is used for Excepted Estates. The IHT 400 is longer, more complicated and is used for all other estates.

73
Q

Instalment Option

A

The ability to pay IHT over a 10 year period via annual instalments rather than in one lump sum. This option is only available for the IHT on particular assets (which include land, buildings and business property).

74
Q

Inter Vivos

A

During lifetime.

75
Q

Inter Vivos Settlements

A

Trusts set up during the Settlor’s lifetime (rather than by his Will).

76
Q

Interest

A

Any legal right (of ownership or use) over an asset.

77
Q

Interest in Possession (IIP)

A

See Life Interest.

78
Q

Interest in Possession Trust

A

See Life Interest Trust.

79
Q

Interest in Reversion

A

See Remainder Interest.

80
Q

Intestacy Rules

A

The statutory provisions that determine how a person’s estate is distributed if they die Intestate as set out in AEA 1925.

81
Q

Intestate

A

Dying without having made valid Will that covers all of your Estate.
The Intestacy Rules will determine who inherits the Estate. See Partially Intestate.

82
Q

Issue

A

Children, grandchildren, great-grandchildren and so- on. Not just children.

83
Q

Lasting Power of Attorney (LPA)

A

Since 1 October 2007, Donors can create Lasting Powers of Attorney. There are two types:-

  1. Property and Financial Affairs Lasting Powers of Attorney; and
  2. Health and Welfare Lasting Powers of Attorney.
84
Q

Legacy

A

A general term used to describe any gift made by Will. However, it is used more to refer to gifts of property or money rather than land.
See Bequest / Devise.

85
Q

Legitimated

A

When the parents of an illegitimate child subsequently marry the child is officially recognised by law as being “of the marriage” and becomes Legitimated.

86
Q

Letter of Wishes

A

A letter drafted by the Settlor of a (usually Discretionary/ Relevant Property) Trust and addressed to the Trustees. It describes the way in which the Settlor wants the Trustees to manage the Trust Fund. So, if a Settlor wants the Trustees to give priority to the needs of a particular Beneficiary, or does not want the Trustees to invest in certain types of shares, he can set this out in his Letter of Wishes.
These letters are not legally binding, but there is a strong moral obligation for Trustees to follow them.

87
Q

Life Interest

A

A type of interest a Beneficiary can have in a Trust.
The Beneficiary has a right to all of the income generated by the Trust Fund and/or use of the trust assets. For example, if the Trust Fund is a share portfolio then the Life Tenant of the Trust will be entitled to all the dividends that are paid in relation to those shares. If the Trust also holds property, then the Life Tenant will usually be entitled to live in that property.
Also called an Interest in Possession.

88
Q

Life Interest Trust

A

A Trust in which a Beneficiary has a Life Interest.
Life Interest Trusts are taxed differently depending on when they were created and whether they were set up during the Settlor’s life or by Will.
Also called an Interest in Possession Trust.

89
Q

Life Tenant

A

A person who has a Life Interest in a Trust.

NB: The word Tenant in this context does not relate to property law.

90
Q

Lifetime Chargeable Transfer (LCT)

A

A gift into a Trust made by a person during their lifetime.

Covers the creation of a new trust and the addition of funds to an existing Trust.

91
Q

Lifetime Rate

A

0%/20% - the rate of IHT charged on LCTs.

92
Q

MCA

A

Mental Capacity Act 2005.

93
Q

Mortgage Protection Policy

A

A mortgage protection policy is an agreement to pay premiums to an insurance company, who will repay the amount the owner of the policy owes on the mortgage if the owner is unable to pay it e.g. if they die.

94
Q

Nil Rate Band (NRB)

A

The amount that can be transferred without any IHT being due.
The NRB is taxed at 0% and is £325,000 for the current tax year.
E.g: If the value of Tim’s gross Taxable Estate is £325,000 then no IHT is due. All of it falls within the NRB and is taxed at 0% (provided Tim had made no Chargeable Transfers in the seven years prior to his death).
If the value of his gross Taxable Estate is £325,001, the first £325,000 is taxed at 0%, and the amount above the NRB (£1) is taxed at 40% (the Death Rate). So in this case, HRMC will be entitled to 40p IHT.

95
Q

Nominee

A

For purposes of Trustee Act 2000. (See also Agent and Custodian).
A person appointed by Trustees to hold trust property in his/her/their name.
This may be done for administrative reasons to eliminate the need to transfer Trust property into new names every time a Trustee is either appointed or retires from the Trust.

96
Q

Notified persons

A

Someone who the Donor chooses to be notified of an application to register the Lasting Power of Attorney.

97
Q

Oath for Administrators

A

The document sent to the Probate Registry which is sworn by the Administrators and sets out their entitlement to act.

98
Q

Oath for Administrators with Will annexed

A

The document sent to the Probate Registry which is sworn by the Administrators and sets out their entitlement to act.

99
Q

Oath for Executors

A

The document sent to the Probate Registry which is sworn by the Executors and sets out their entitlement to act.

100
Q

Official Copies

A

When applying for the Grant of Representation the PRs should ask the Probate Registry to provide the original grant and a number of copies. The copies will be embossed with a court stamp and are called “Official Copies”.
The PRs are entitled to produce one of the Official Copies (rather than the original grant) when proving their entitlement to act.

101
Q

OPG

A

Office of the Public Guardian.

102
Q

Partially Intestate

A

Dying having made a valid Will that does not deal with all of the assets in the Estate. The Will determines what happens to the assets it does cover, and the Intestacy Rules apply to any assets which it does not.

103
Q

PC (WPEP)

A

Private Client (Wills Probate and Estate Planning) LPC elective.

104
Q

Pecuniary Legacy

A

Gift of a sum of money under a Will.

105
Q

Periodic Charge

A

IHT charge that occurs on each 10 year anniversary of a Discretionary / Relevant Property Trust.

106
Q

Perpetuity Period

A

The length of time a Trust can exist. The current perpetuity period is 125 years under the Perpetuities and Accumulations Act 2009.
At the end of the Perpetuity Period the Trust property must be distributed to the Beneficiaries.

107
Q

Personal Representative (PR)

A

A person responsible for Administering an Estate. A generic term which covers both Executors and Administrators.

108
Q

PET

A

See Potentially Exempt Transfer.

109
Q

PET trap

A

In some circumstances a transfer made more than seven years ago can still impact on the amount of IHT due – this is referred to as the “PET trap”.
Potentially Exempt Transfer (PET) – A gift by one person during their lifetime to another person (e.g. if a parent gives their child £10,000 towards a deposit for a house).
PETs are commonly one-off or irregular gifts, although it is possible for repeat gifts to also be PETs.

110
Q

Precatory Trust

A

Where a Testator gives assets to a Beneficiary and expresses a wish that the Beneficiary will pass these on in accordance with the Testator’s wishes. This is a “false” trust – there is no legal trust, merely a hope that that the Beneficiary will comply with the wishes.

111
Q

Probate Registry

A

The Probate Service forms part of the Family Division of the High Court and deals with ‘non-contentious’ Probate business and issues Grants of Representation. The Probate Service is made up of the Principal Registry in London and 11 District Probate Registries.

112
Q

Probate Value

A

The value attributed to assets listed in the IHT 400 / 205.

See Inland Revenue Account.

113
Q

Property and Financial Affairs LPA

A

This relates to the Donor’s property and financial affairs. It can allow Attorneys to, for example, sell property, manage bank accounts, pay bills and claim pensions and benefits.

114
Q

Proportionate Charge

A

See Periodic Charge.

115
Q

Rate Applicable to Trusts (RAT)

A

The rate at which the Trustees of Discretionary / Relevant Property Trusts pay tax on Trust income.

116
Q

Related Property

A

Assets owned by spouses/civil partners which are worth more together than the total of the items when valued separately.
E.g. Two vases that cost £100 each but together are worth £250, or if Andrew owns a 53% shareholding in a company and gives 5% to his wife Elaine – as a controlling interest the 53% could be worth more than the combined value of the 48% plus the 5%, if valued separately.

117
Q

Relevant Property Trust

A

Trusts created during the settlor’s lifetime after 22 March 2006 (except Disabled Persons Trusts) and some, but not all, Will Trusts created after 22 March 2006.
Relevant Property Trusts are all subject to the tax rules that apply to Discretionary Trusts.

118
Q

Remainder Beneficiary

A

A Beneficiary who has a Remainder Interest.

119
Q

Remainder Interest

A

The right to an interest in a Trust at a future date.
E.g: When a Settlor creates a Life Interest Trust he will name the Life Tenant (who is entitled to Trust income during his lifetime) and will also set out who should be entitled to the Trust assets when the Life Tenant dies. The people with a right to benefit only after the Life Tenant dies have a Remainder Interest, i.e. their interest is in the Trust assets which are left (‘remain’) at a point in the future.
Also known as a Reversionary Interest.

120
Q

Remainderman

A

See Remainder Beneficiary.

121
Q

Renounce Probate

A

Where an Executor makes an official declaration that he is not going to be involved in the Administration of the Estate.

122
Q

Residence

A

There is a statutory residence test (SRT). The SRT determines whether a taxpayer is resident in the UK for income tax and capital gains tax purposes. Long term residence in the UK can result in a person being Domiciled in the UK.

123
Q

Residence Nil Rate Band (RNRB)

A

An amount of a Chargeable Transfer of value on death on which inheritance tax is charged at 0% (that is, on which there is no IHT to pay).
It can be claimed where the deceased dies on or after 6 April 2017 and disposed of his interest in a residence to a lineal descendant (for example, a child or grandchild).

124
Q

Residuary Beneficiary

A

A person entitled to receive the whole or part of the Residuary Estate.
See Residuary Estate.

125
Q

Residuary Estate

A

The part of the Estate which is left after all debts, expenses and Legacies have been paid.
Also known as the Residue.

126
Q

Residuary Gift/Legacy

A

A gift of the whole or part of the Residuary Estate.

127
Q

Residue

A

See Residuary Estate.

128
Q

Reversionary Interest

A

See Remainder Interest.

129
Q

Revoke

A

Cancel.

130
Q

Settled Property

A

Any assets held in Trust.

131
Q

Settlement

A

This word is used interchangeably with Trust.
However, Trusts set up during a Settlor’s lifetime tend to be referred to as Settlements to distinguish them from Trusts set up by Will.

132
Q

Settlor

A

A person who sets up a Trust (either during their lifetime or by their Will).

133
Q

Specific Legacy

A

Gift under a Will of a particular item which was owned by the deceased at the time of death and is distinguished from other property of a similar type owned by the deceased. If the Testator does not own the particular item when he dies then the gift fails.
E.g. ‘I GIVE to my cousin John Taylor of [address] my shares in Tesco plc’. See also General Legacy to compare/contrast.

134
Q

Standing Search

A

A search run by the Probate Registry of all the grants that have been issued in the 12 months prior to the application (to make the search) and six months after.

135
Q

Statutory Legacy

A

The Legacy payable to a surviving spouse/civil partner under the Intestacy Rules. Currently £250,000 where issue of the deceased survive.

136
Q

Statutory Nominations

A

Assets (which include deposits with Friendly Societies and National Savings accounts) that can be transferred on death directly to a chosen Beneficiary by nomination rather than by Will or the Intestacy Rules.

137
Q

Statutory Trust

A

A Trust created by statute.
In the context of Intestacy, Statutory Trusts are temporary in nature and exist for the benefit of identified Beneficiaries until they reach 18 (or marry earlier).

138
Q

Succession Estate

A

See Distribution Estate.

139
Q

Sui Juris

A

One of full legal capacity.

140
Q

Survivorship

A

The rule of law which states that on the death of a joint tenant the deceased’s share of the joint property passes automatically to the surviving joint tenant(s). The property cannot be passed to anyone else under a Will or Intestacy.