Will Writing Service - Glossary
Domicile
The country of your domicile (which you regard as your permanent home) is important for Inheritance Tax purposes. If you do not regard yourself as domiciled in England and Wales, please let us know in the box for Additional Information in your Will Questionnaire.
Executors
Executors are the people or organisation appointed in a Will who are responsible for ensuring that the instructions contained in the Will are carried out. The Executor will need to identify the size of your Estate (all of your assets and possessions); complete an Inheritance Tax return; pay any debts from the funds in the Estate including taxes and funeral expenses, before distributing the remainder of your Estate to the people named in the Will.
This can be a complicated role and some people prefer to appoint a professional to deal with the Estate especially when Inheritance Tax is payable. Callaghans are able to act as Executors which would ensure distribution of your Estate by experienced professionals familiar with the procedure involved. If you decide to appoint Callaghans as your Executors, we will let you know what we would charge.
Guardians
It is possible to express your wishes about who you would like to look after your children in your Will. This is appropriate for children who are under 18. If there is a dispute then the decision would ultimately be made by the Family Courts but appointments made in a Will play an important part.
Inheritance Tax (IHT)
Everyone's Estate is liable for Inheritance Tax when they die but there is a tax free band (the Nil Rate Tax Band) of £325,000 or £650,000 for a married couple or civil partners. It is important that we know whether your estate will be liable for IHT. If your estate is likely to be over the tax free band then you may wish to consider using our Bespoke service.
It is also possible for a widowed spouse or surviving civil partner to "use" any surplus of the Nil Rate Tax Band of their deceased spouse/civil partner. Based on the information you have provided, if we feel your Estate is likely to be greater than the Nil Rate Tax Band we may contact you to discuss your options.
Beneficiary
A person who is given an item or money in a Will.
Specific Legacies
Some people choose to leave specific personal possessions to particular people. This is often based on special sentimental value or to demonstrate appreciation for acts of kindness or a long term friendship. The reasons behind these Gifts are unique and personal to each individual. These types of Gifts may be more appropriately gifted in a Letter or Memorandum of Wishes. We will refer to this Letter in your Will. We can supply a draft Memorandum of Wishes should you wish. Gifts of cash cannot be made in this way.
Foreign Property
If you own a property abroad then you should make a Will in that country which should only deal with your property and assets in that country. You must take care to ensure that any Will does not revoke your English Will and you should keep a copy and a translation with your English Will.
Residue of your Estate or Residuary Estate
This term means your net estate after the payment of all tax, liabilities and legacies. We suggest that you state who your estate should go to in the event that none of your immediate family survive. Space for this is set out under Question 13 under the heading 'Default Beneficiares'
