Key Estate Planning Terms Explained

When it comes to estate planning, the terminology can often feel overwhelming. At AHJ Wills & Estates, we believe in making things as clear and straightforward as possible. Below is a helpful guide to some of the key terms you might come across when putting your affairs in order.

Whether you’re creating a Will, setting up a trust, or preparing for the future with Lasting Powers of Attorney, understanding the language used can help you make confident and informed decisions.

Protective Property Trust (PPT)

A Protective Property Trust is a popular addition to many Wills, especially for couples who jointly own a home. It allows one partner to leave their share of the property in trust, rather than passing it directly to the surviving partner.

This can help to:

• Protect against care home fees 
• Preserve inheritance for children from previous relationships 
• Ensure that your share of the property is not unintentionally passed elsewhere if your partner remarries 

The surviving partner can still live in the property for life, but they will not fully own the deceased’s share. This helps to ring-fence that portion for the intended beneficiaries.

Life Interest Trust

A Life Interest Trust allows someone (known as the life tenant) to benefit from an asset or property during their lifetime, while ensuring the capital eventually passes to another named beneficiary.

This is often used in cases such as:

• Leaving a property to children, but allowing a spouse or partner to remain living in it for life 
• Providing income from investments to a partner, but ensuring the capital passes to children from a previous marriage 

Life Interest Trusts can be helpful for blended families, or where you want to support a loved one without compromising your long-term wishes.

Probate and Estate Administration

Probate is the legal process of proving that a Will is valid. It gives the executor the authority to deal with the deceased’s estate, such as closing bank accounts, selling property and distributing assets.

Estate administration is the broader process that follows. It includes collecting assets, settling debts, paying any inheritance tax and distributing the estate to the beneficiaries. Probate is simply one part of this wider process.

If there is no valid Will, the process is slightly different and a Grant of Letters of Administration will be required instead.

Letters of Administration

When someone dies without a Will, they are said to have died intestate. In this case, a close relative must apply for Letters of Administration, which gives them legal authority to administer the estate.

The person appointed is called the administrator, rather than an executor. The estate will then be distributed according to the rules of intestacy, which may not reflect the wishes the deceased might have had.

Applying for Letters of Administration can be more complex and time-consuming than applying for probate, which is one of the reasons why having a valid Will is so important.

Why This Matters

Understanding these terms helps you make better decisions and avoid costly mistakes. At AHJ Wills & Estates, we take the time to explain every step of the process clearly. Whether you need to set up a trust, write a Will, or deal with probate, our team is here to support you from start to finish.

We’re based in Sheffield and Rotherham and offer face-to-face meetings to make estate planning feel less daunting and more personal.

 

Need guidance on any of these estate planning terms?
Get in touch with AHJ Wills & Estates today to book a free, no-obligation consultation.