Blog

WHAT DO ALL THESE ESTATE LAW WORDS MEAN?

 I have a lot of clients very confused with the legal language when their loved one has passed away.  Here is a guide to the most common legal terms:

ADMINISTRATOR/S: These are the people responsible for handling the belongings and wishes of a person who has passed away. If there’s a will, it usually names these people. If not, the closest family member will apply to the court to be granted the right to be the administrator.

AFFIDAVIT: This is a written statement confirming what you know as the truth. It’s used in court to say something is true such as, “I have searched for a Will and there isn’t one”. This must be witnessed by a solicitor or Justice of the Peace (JP).

BENEFICIARY: This is someone or an institution (like a charity) that gets something from a will.

BEQUEST: This is a special gift that someone leaves behind in their will. It could be an object, like a family heirloom, or money.

DISTRIBUTION: This is when the assets (property, money, specific items, insurance) from a person’s belongings are given to the people or organisations mentioned in their will (or in accordance with the Administration Act, if there is no will).

ENDURING POWER OF ATTORNEY (EPA): This is when you choose someone to make decisions for you if you can’t. It can be for your property or for your personal care. It can start right away or only when you have lost the mental capacity to make decisions for yourself. It stops after you have passed away.

ESTATE: This is everything you own when you die that can be given away in your will. Some things, like shared assets (jointly owned) or trust property, don’t count as part of the estate.

EXECUTOR AND/OR TRUSTEE: These are the people in charge of making sure your wishes in your will happen and that the right people get what you left for them.

GRANT OF ADMINISTRATION: This is permission from a court for the person in charge (the executor) to do what’s needed with the stuff from the person who passed away. It’s usually called “probate” if there’s a will, and “Letters of Administration” if there’s no will.

GUARDIAN: This is someone who takes care of a child when their parents can’t. If parents choose who this should be in their will, it’s called a “testamentary guardian.”

INTESTATE: If someone dies without leaving a will, they’re said to have died “intestate.” It means their assets are given out based on the law, not their wishes.

LEGACY: This is another word for a gift in a will, often money.

LETTERS OF ADMINISTRATION: This is an order from the court that lets someone take care of the belongings of a person who passed away without a will. It’s usually only needed if the person who died had assets worth more than $15,000.

POWER OF ATTORNEY: This lets someone else make decisions or sign papers for you. It can be cancelled if you’re not mentally okay, but an “Enduring Power of Attorney” keeps working even if you can’t make decisions.

PROBATE: Probate means “to prove”.  This is an order from the court proving the will is real.  It also provides the names of those in charge (executor) to handle the assets left by the person who died.

RESEALING: If the person who died had assets in another country, the court can make their papers valid in that country so their assets can be taken care of there.  For example, if probate is granted in Australia, it can be resealed in New Zealand.

SPECIAL TRUST ADVISOR: This is someone who gives advice to the people in charge (executors and trustees) about what they should do. They’re not the ones in charge, but the executors listen to them.

TESTAMENTARY: This is anything related to or mentioned in a will. It’s what you want to happen after you’re gone.

WILL: This is a legal document that says what you want to happen after you die. It’s essentially your instructions for when you’re not here anymore.  It needs to revoke any previous wills, have the names of the executors, and who will obtain your assets.

I hope this helps make these legal terms easier to understand! If you have more questions, feel free to ask.