Glossary of terms

Codicil

Document adding to or altering the terms of a Will.

Estate

All your possessions and liabilities at the time of your death, including money and property.
Executor

The person who is appointed by you to make sure the instructions in your Will are carried out.
Inheritance Tax (IHT)

Most estates don’t incur the 40% IHT on death. It only applies if the taxable value of your estate (including your share of any jointly owned assets and assets held in some types of trusts) when you die is above £325,000 (this rate is frozen until 2017-2018). It is only payable on the excess above this nil rate band.

Legacy

A gift left to a person or organisation in your Will.

Pecuniary legacy or cash gift

This is a fixed amount of money e.g. £5,000 This type of gift will lose value over time due to inflation therefore you may wish to index link your cash gift.

Residuary gift

This is one of the simplest ways of leaving money to us. It is the balance of your estate after all debts, taxes, expenses and other gifts have been paid. The value of this type of gift increases as the value of your estate increases.

Reversionary legacy

This is the way to leave a gift to a chosen beneficiary such as BTF, whilst allowing another person to have the use of it during his or her lifetime.

Solicitor

Click here to find your local probate solicitor

Specific legacy

A gift of specific property such as shares, jewellery or a painting.