Will making terminology

Here we ‘junk the jargon’ and explain some commonly used terms that you may come across when you write your Will.

To begin with, the testator – you, perhaps – is the person making a Will. The first thing a testator has to do is to work out the value of their estate – all their possessions including property and money that will be left after they die, once debts have been taken into account.

Then you can decide who you would like to be your beneficiaries – the people or organisations that will receive a gift in your Will. There are
different ways in which you can leave a legacy and the most common are specific, pecuniary, and residuary legacies.

A specific legacy is a particular named item left as a gift in your Will. For instance, it could be an item of jewellery, a valuable piece of furniture or shares. A pecuniary legacy is a specific amount of money left as a gift in your Will. However, it is important to realise that the value of a pecuniary legacy can be eroded by inflation over time.

Once all of your specific and pecuniary legacies have been made to your beneficiaries, the remainder of your estate is known as the residue.

The residue of your estate can be left to one or more beneficiaries as a residuary legacy. A residuary legacy is not a specific sum of money, it’s a proportion of the residue of your estate. For example, you could leave 100% of the residue of your estate to your favourite charity, or if you have two charities you support, you could leave half of the residue to each of them. A residuary legacy is not subject to inflation – a 10% share is always a 10% share.

Leaving the residue to charity could also help you to minimise Inheritance Tax if the value of your estate goes above the tax threshold. When drafting your Will you will also have to decide who you would like your executors to be.

Your executors will ensure that all the wishes in your Will are carried out after your death. You can choose one or more people to act as your executors, including solicitors or a bank. Executors can be beneficiaries in your Will.

After your death your Will goes to probate. This is the legal procedure that establishes that a Will and codicil are valid. Once probate has been completed then your executors have the authority to carry out the terms of your Will.

If you die intestate this means you have died without a valid Will and your estate will be subject to the rules of intestacy. This can be a very complex situation and could mean that those closest to you might not benefit from your estate as you would have wished.

Finally, once you have made your Will, keep it up-to-date. You should ideally review your Will every two to three years. A small change or addition to your Will can bemade using a codicil, a legal document that must follow the same legal formalities as your original Will. If your changes are not simple ones, often it is better to make another Will.
 

Will to Change magazine

Our 'Will to Change' magazine explains all about the Will making process and includes a free pull-out Will changer. 

Order a free copy by contacting Linda or Elaine at our office, via our contact form, email info@ageni.org or telephone
028 9024 5729.