Jargon busting – Wills

In this article we are looking to explain some of the more common terms to remove any doubt or confusion about their meaning.

Why is jargon used in Wills?

Legal terms are used in formal documents to ensure clarity. A Will is a formal document. The terms used form a kind of shorthand to save lengthy explanations or repetition throughout the document. They are also used to avoid ambiguity to those who need to interpret the document.

Terms relating to people

Let’s look, first of all, at the people mentioned in a Will.

The Testator

The Testator is the person who makes the Will.

The Executor

The Executor is the person, people, or organisation you appoint to deal with your affairs after you have passed away. They are responsible for identifying the assets and debts of the estate. The Executor will also need to deal with any tax liabilities of the estate (for example paying any inheritance tax that might be due) and apply for probate (the process needed to recognise the Executor’s authority). Once the Executor has probate they can collect and encash the assets before distributing the wealth in accordance with the Will.

Beneficiaries

These are the people (or organisations) who you have decided will receive a share of your estate after your death.

Trustee

Sometimes a Trust is set up within a Will. The person who manages the Trust is called a trustee. There may be one or more trustees.

Issue

When this term is used in a Will, it refers to your bloodline or lineal descendants which would include children, grandchildren and great grandchildren and other descendants named or referred to in a Will or who have an entitlement to inherit.

Guardians

If you have children who are under 18 they are considered to be minors so you can appoint a guardian to look after their affairs in the event of your death.

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 after the debts and other liabilities have been paid.

Assets

These are the items of value the testator owns, such as of property, cash or 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

Just like a bequest, 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.