| Absolute Interest: |
A beneficiary is entitled immediately and absolutely to their entitlement without any restriction. |
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| Accumulation: |
Income is retained (in a Trust) and re-invested. |
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| Advancement: |
The trustees are given authority to pay capital monies to a beneficiary. |
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| Appropriation: |
A beneficiary takes an asset in lieu of their entitlement in an Estate. |
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| Codicil: |
A document executed by an individual amending the contents of their Will. |
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| Court of Protection: |
The Court which has responsibility for the management of assets of those unable to do so for themselves on the grounds of mental disability. |
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| Deed of Variation: |
See detailed briefing note on this subject on this site. |
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| Estate Accounts: |
Accounts recording financial transactions (income and capital) during the administration of an Estate. |
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| Grant of Probate/ Letters of Administration: |
An Order from the Probate Court authorising Executors or Administrators (where there is
no Will to deal with the affairs of the deceased. |
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| Hotch Pot: |
This is a provision in a will requiring that where one beneficiary has already been given a specified asset (perhaps a house or a business) the value of that asset must be taken into account before sharing other assets-this enables equality to be delivered to beneficiaries |
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| Life Interest/Tenant: |
A situation in which a beneficiary is not entitled absolutely but instead only to income
From capital or use of an asset (for example, a house) during their lifetime. |
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| Nil Rate Band: |
A term used in relation to Inheritance Tax – to describe that part of the Estate below which
Inheritance Tax is not payable – see separate briefing note on Inheritance Tax elsewhere on this site. |
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| Personal Chattels: |
This has a very specific meaning – including Personal effects but excluding cash and chattels used for business purposes. |
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| Potentially Exempt Transfer: |
A lifetime gift which does not attract tax at the date of the gift but which may do so later. |
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| Power Reserved: |
A named Executor may choose not to formally apply for a grant at the outset of an administration (leaving the application to others) but who reserves the right to apply later. |
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| Renouncing Probate: |
A named Executor signs a document formally cancelling their appointment as an Executor from the start. |
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| Residuary Estate/Residuary Beneficiary: |
The remainder of the Estate after payment of debts and legacies is paid to the residuary beneficiary. |
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| Specific Legacy: |
Gift of a specific asset |
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| Trustee: |
An individual or trust corporation who is named as the legal owner of an asset but who holds if not for their personal benefit but for the benefit of another – see separate briefing note elsewhere on this site in relation to Trusts. |
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| Will: |
A document which makes provision for the disposal of assets by the maker (known as a Testator) upon their death. There are strict rules as to the formalities required. |
