Glossary

36 words the paperwork uses and rarely explains.

The process

Caveat

A notice filed with the court that stops a grant being issued while a dispute is looked at. It buys time; it does not decide anything.

Deemed disposition

A tax rule that treats somebody as having sold everything they owned the moment before they died, so any gain is taxed on the final return even though nothing was actually sold.

Estate administration

Everything that has to be done after a death: finding the assets, paying the debts and taxes, and passing on what is left. It usually takes months rather than weeks, and longer if there is property to sell or a dispute.

Also called: Administering the estate.

Grant of representation

The umbrella term for the court document giving somebody authority to deal with an estate — whether that is a grant of probate where there is a will, or letters of administration where there is not.

Intestate

Dying without a valid will. The law then decides who inherits, in a fixed order that often surprises families — an unmarried partner may get nothing, and a spouse may not get everything.

Also called: Intestacy.

Letters of administration

The court's authority to deal with an estate when there is no will, or when the named executor cannot or will not act. It does the same job as a grant of probate.

Also called: Administration.

Probate

The court process that confirms a will is valid and that the person named in it has authority to act. Banks and land registries usually want to see the court's document before they will release anything. Not every estate needs it — small ones, and assets that pass automatically to a joint owner or a named beneficiary, often do not.

Also called: Grant of probate, letters probate.

Renunciation

Formally stepping down as executor before taking anything on. It has to be done before you start acting: once you have begun dealing with the estate it is much harder to withdraw.

Also called: Renouncing probate.

People and roles

Administrator

Somebody appointed by the court to deal with an estate when there is no will, or no willing executor. The job is much the same as an executor's.

Attorney

Under a power of attorney, the person authorised to act for somebody who is still alive. Nothing to do with a lawyer, and the authority ends completely at death — a common and expensive misunderstanding.

Beneficiary

Anyone who receives something from the estate, whether under the will, under the intestacy rules, or through a direct designation on a policy or account.

Executor

The person named in a will to carry it out. They collect the assets, pay the debts and distribute what is left — and they are personally accountable for doing it properly.

Also called: Executrix, personal representative.

Guardian

The person a will names to look after children under age. The appointment usually still has to be confirmed by a court.

Next of kin

The closest living relatives. It matters less than people expect: being next of kin does not by itself give any authority over the estate, and does not override a will.

Personal representative

The catch-all for whoever is legally responsible for an estate — executor or administrator. Official letters often use this rather than either.

Also called: PR.

Testator

The person who made the will. Their intentions are what the whole process is trying to carry out, which is why a will that is ambiguous, or was signed under pressure, causes so much trouble later.

Also called: Testatrix.

Trustee

Someone who holds property for the benefit of another person rather than for themselves. Wills often create a trust for children, with a trustee managing it until they are old enough.

Documents

Advance directive

Written instructions about medical care for a time when you cannot speak for yourself. Separate from a will, and it also has no effect after death.

Also called: Living will, healthcare directive, personal directive.

Affidavit

A written statement sworn to be true. Courts and land registries often ask for one instead of, or as well as, a form.

Also called: Statutory declaration.

Codicil

An amendment to an existing will. It has to be signed and witnessed with the same formality as the will itself.

Death certificate

The official record of the death. Most institutions want a certified copy rather than a photocopy, and several will want one each — which is why it is worth ordering more than you think you need.

Power of attorney

A document letting somebody act for you while you are alive — usually for money and property. It stops having any effect the moment you die, which is exactly when families most often try to use it.

Also called: POA, mandate, enduring power of attorney.

Will

The document saying who should get what, and who should carry it out. It only counts if it was signed and witnessed correctly — the rules differ by province, state and country, and a will valid in one may not be in another.

Also called: Last will and testament.

Money and property

Assets and liabilities

What was owned and what was owed. Debts are paid out of the estate before anybody inherits, and an executor who distributes first can end up paying them personally.

Beneficiary designation

A named beneficiary on a pension, policy or registered account. The money goes straight to that person and is not governed by the will — an out-of-date designation quietly overrides whatever the will says.

Bequest

A specific gift in a will — a sum of money, a piece of jewellery, a named painting.

Also called: Legacy, devise.

Clearance certificate

Confirmation from the tax authority that nothing further is owed. Distributing the estate before it arrives can leave the executor personally liable for tax that turns up later.

Disbursements

Money the executor or the solicitor pays out on the estate's behalf: court fees, certified copies, valuations, searches. Reimbursable from the estate, but only if you kept the receipt.

Also called: Outlays, expenses.

Estate

Everything somebody owned when they died, less what they owed. Assets that pass straight to a joint owner or a named beneficiary are usually outside the estate entirely — which is why the estate can be much smaller than the family expects.

Executor's compensation

Payment for the work of administering the estate. What is reasonable, and who has to approve it, varies a great deal — some places set a percentage, others leave it to the court.

Also called: Executor's fee, commission.

Joint tenancy

A way of owning property together where, when one owner dies, their share passes automatically to the survivor. It bypasses the will completely — which is either exactly what was intended or a nasty shock.

Also called: Right of survivorship.

Life interest

A right to use something — usually a home — for the rest of somebody's life, after which it passes to someone else. Common where a will provides for a second spouse and children from a first marriage.

Also called: Life estate, usufruct.

Per stirpes

A way of dividing a gift so that if a beneficiary has already died, their share goes to their children rather than being shared among the survivors.

Probate fees

What the court charges to issue the grant, usually based on the value of the estate. The name and the basis differ by jurisdiction, so check the official fee schedule rather than a figure you read somewhere.

Also called: Estate administration tax, probate tax.

Residue

What is left after debts, taxes, expenses and specific gifts are paid out. Whoever inherits the residue absorbs every surprise, good or bad.

Also called: Residuary estate.

Tenancy in common

Owning property together in defined shares, where each owner's share does form part of their estate and can be left to whoever they choose.

These are plain-language explanations, not legal definitions, and the precise meaning of several of them differs by province, state and country. Where a word decides something important, check it against the guidance for the place that applies.