Beneficiaries
The person, people or organisations who inherit as a result of your will are called ‘beneficiaries’.
Find out more about beneficiaries
Residuary beneficiaries
This is the person, people or organisations who will inherit what’s left of your estate after all the relevant payments have been made. Depending on your circumstances, payments could include:
- gifts of specific items
- gifts of money
- debts
- funeral expenses
- inheritance tax
You can have more than one residuary beneficiary, and you’ll be asked to name them in your will.
Codicils and updating your will
A codicil is a legal document that allows you to make a minor amendment to an existing will, while leaving the rest of the will intact. It’s a separate document to your will, and will need to be kept and read alongside the will.
We don’t offer codicils at Farewill because we think it’s easy for a codicil to get lost, and we find that some customers need to make multiple changes to their will over time.
Instead of a codicil, we allow you to make unlimited changes to your will through our update service. This is a £10 annual subscription which enables you to update your will at no extra charge, whenever your circumstances change.
Find out more about codicils and why we don't use them at Farewill
Your estate
Everything which belongs to you at the time of your death is known as your ‘estate’. This includes all the assets which you own in your name only, for example, your bank and building society accounts, stocks and shares, personal belongings and property. It also includes your share of the value of any assets which you own jointly with someone else.
Your executor
An ‘executor’ is the person, people or professional organisation you choose to carry out the wishes in your will. The executor could be a friend, family member or a professional. The most important thing is that they feel comfortable and confident dealing with your estate.
Dealing with your estate may involve:
- establishing the authenticity of your will
- identifying your assets and debts
- making an application for probate
- collecting the various assets in your estate
- settling any debts and tax before distributing the balance in accordance with the wishes in your will
Unless the will specifies a different arrangement, your executor will become a trustee of the estate once they’ve either started to administer your estate and they are holding funds on behalf of the beneficiaries, or they’ve completed the administration and there is an ongoing trust, or trusts.
If you don’t have anyone you’d like to name as your executor, or you’re worried your estate will be difficult to deal with (perhaps you have business assets or a complicated family situation) you may choose to appoint a professional executor, for example, Farewill Trustees.
Find out more about executors and Farewill Trustees
Executing
Executing a will is getting the will properly signed in the presence of two witnesses. Read our guide who can witness and sign a will.
Guardian
If you’re a parent, or have responsibility for a child or children, you can name a guardian in your will. The guardian will have responsibility for taking care of the child (or children) if you die before they reach their 18th birthday. You can choose up to four guardians, but most people choose two – usually a couple.
You can also appoint a guardian to take responsibility for any pets you may own.
‘Intestate’ and ‘Intestacy’
A person who dies without leaving a valid will is said to have died ‘intestate’. There is a set of laws in England and Wales that lay out what happens to someone’s estate if they die without a valid will. These are called the rules of intestacy.
Read our guide what happens if you don’t write a will
Inheritance Tax
Inheritance Tax (IHT), is a tax that is payable on your estate when you die, less any outstanding liabilities and after deducting any available tax free allowances. The current rate of IHT is 40%.
Inheritance Tax (IHT), is a tax that is payable on your estate when you die. The current rate of IHT is 40%, and it’s calculated on the value of your estate, minus:
- any outstanding liabilities
- any available tax free allowances
Read our guide to inheritance tax.
Probate
Probate is a legal document which gives you the authority to handle the money, property and personal possessions (the estate) of the person who has died.
If someone has died and you’re named as an executor in the will, or you’re an administrator, you may need to apply for probate. To apply, you’ll need to check the validity of the will (if there is one), value the estate, confirm who has the authority to handle estate administration and pay any Inheritance Tax.
Estate administration is the process of handling the estate. It includes selling, transferring or distributing assets, dealing with all the legal, financial and tax affairs, and preparing estate accounts.
Find out more about the ways Farewill can support you with probate.
Revoking a will
Revoking a will is the process for cancelling a will. This is often done by creating a new will that contains a ‘revocation clause’. This is usually the first clause of a will and reads: "I revoke all earlier wills made by me and declare this to be my last will.”. If the new (replacement) will is later revoked, this does not mean the original will once again apply.
Testator or Testatrix
The person making the will, or the person who has made the will. A testator is male, a testatrix is female.
A Trust
A trust is an arrangement which you can include in your will as a way of managing your assets for the people you’d like to benefit. Assets include things like money, investment, land and buildings.