Glossary of terms for executors

As an executor for a Will, you’ll face some technical terms you might not be familiar with. Here’s a guide.

Acting as an executor can feel like an overwhelming task. If we can assist you, please do not hesitate to get in touch.

A-Z guide

Beneficiaries – those due to receive gifts from the Will.

Capital Gains Tax – applied to the profit made from selling an asset for more than
its original purchase price.

Codicil – a separate legal document that makes a change or an addition to an existing Will.

Conditional Legacy – a gift which someone is entitled to only in a fall-back situation, this may be when someone else named in the Will passes away before the deceased person.

Estate – the sum total of the assets and liabilities of the person who has passed away, essentially everything owned or owed. Land, property, shares, savings, money owed to the deceased, unpaid wages and personal possessions fall under the category of assets. Liabilities cover anything the deceased person owed, this would include any unpaid bills, loans, mortgages, credit card bills etc.

Estate Accounts/Executory Accounts (in Scotland) – these are the final accounts detailing all of the assets and liabilities of the estate, they show tax paid and the amounts paid to beneficiaries from the estate, as well as any liabilities that have been settled from the estate, such as care home fees, funeral expenses etc. Charities are required to hold a copy of estate accounts when they are residuary beneficiaries.

Estate Inventory – a Scottish legal term, a detailed list of all of the assets, property, and debts of the deceased persons estate.

Grant of Probate – the document issued by the court that gives the executor the legal authority to administer the estate of the deceased.

Income – money that has been received from the assets of the deceased since they have passed away. This may be interest on bank or building society accounts or share dividends paid.

Inheritance Tax – a tax on the estate of someone who has passed away, including all their assets such as property, money, and personal possessions.

Interest in remainder – once the person with a life interest gift passes away, the benefit of the property or investment fund passes to this particular person or charity.

Interim payments – payments to beneficiaries that can be made before the administration of the estate is completed.

Legacy – a gift left in a Will, this can be to a person or charity.

Letter of wishes – a mechanism to convey wishes that are not included in the Will or in a Codicil. It may include funeral instructions or who should receive smaller items, such as a wedding ring. A letter of wishes is not a legally valid document.

Liabilities – the debts that are outstanding when the deceased passes away. This could include outstanding credit card payments and utility bills, funeral expenses and care home fees.

Life interest – a gift in a Will that gives someone the right to live in a property or to benefit from an investment fund for the remainder of their life.

Pecuniary gift – a fixed sum of money included in the Will.

Probate/Confirmation (in Scotland) – The procedure that establishes the validity of a Will so that the executors are authorised to administer the estate.

Residue – what is left of the estate after all specific and pecuniary gifts have been paid and all debts, taxes and expenses settled.

Residuary gift – a gift of the percentage of the estate.

Specific gift – a particular gift such as a piece of jewellery or a painting.

Trust – a written agreement where appointed people; trustees, are given assets to hold and manage for the benefit of those name in the Deed or will which created the trust.

Trustee – individuals or an organisation named in a Deed or a Will to take responsibility for the assets and manage them.