Jargon Buster

Assets

Generally everything that you own.

Beneficiary

A person, or organisation, to whom you leave a gift in your Will.

Estate

The total sum of your possessions, including property and money, left at your death once any debts have been paid.

Inheritance Tax

The 40% tax paid on an estate that is over the nil-rate band threshold. The current threshold is £312,000 for an individual. Married couples or those in a civil partnership have a threshold of £624,000.

Intestate

The term for someone dying without having an up-to-date Will in place. In this case the Rules of Instestay will decide who your estate is passed to.

Nil Rate Band

The amount of your estate on which IHT is not payable. For the tax year 07/08 this is £312,000 and for married couples or those in a civil partnership £624,000.

Potentially exempt transfer

A gift made during ones lifetime that is exempt from Inheritance Tax should the donor live for 7 years after making the gift.

Trust

An arrangement you can make in your will to administer part of your assets after your death.

Will

A form of instruction as to how someone wishes to dispose of their assets on death.

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