Advance Decision
An advance decision to refuse treatment lets you set out in advance the medical treatments you do not want to receive if you later lose capacity. It is legally binding on clinicians, and must be in writing, signed and witnessed if it covers life-sustaining treatment.
Learn morearrow_forwardAgricultural Property Relief
Agricultural property relief reduces the value of qualifying farmland and farm buildings for inheritance tax. Since 6 April 2026 it shares a single £2.5 million 100% relief allowance with business property relief, with relief on value above that limited to 50%.
Learn morearrow_forwardAnnual Allowance
The annual allowance is the maximum that can be paid into your pensions each tax year with tax relief — currently £60,000, or 100% of your relevant UK earnings if lower. Unused allowance from the previous three tax years can generally be carried forward.
Learn morearrow_forwardAnnuity
An annuity is an insurance contract converting a pension pot into a guaranteed income, usually for life. Once bought it generally cannot be reversed. The income depends on the size of the pot, your age, your health and the options chosen, such as a spouse's pension or inflation protection.
Learn morearrow_forwardBare Trust
A bare trust holds assets for a named beneficiary who is absolutely entitled to them. The trustees have no discretion — they simply hold the assets until the beneficiary calls for them. In England and Wales the beneficiary can demand them outright at 18; in Scotland the age is 16.
Learn morearrow_forwardBeneficiary
A beneficiary is a person, charity or organisation entitled to receive something from a will, trust, pension or insurance policy. A beneficiary may inherit a specific item, a fixed cash sum, a share of the residue, or a benefit held on trust for them.
Learn morearrow_forwardBusiness Property Relief
Business property relief reduces the value of qualifying business assets for inheritance tax. From 6 April 2026, 100% relief applies only to the first £2.5 million of combined business and agricultural property, with relief on value above that limited to 50%.
Learn morearrow_forwardCapital Gains Tax
Capital gains tax is charged on the profit made when you sell or give away an asset that has risen in value — typically shares, second properties or business interests. Your main home is usually exempt, as are assets held inside ISAs and pensions.
Learn morearrow_forwardCash ISA
A cash ISA is a savings account where interest is paid free of UK income tax. For 2026/27 the full £20,000 ISA allowance can go into cash. From 6 April 2027 the cash limit falls to £12,000 for savers under 65, while those aged 65 and over keep the full £20,000.
Learn morearrow_forwardCodicil
A codicil is a document that amends an existing will without replacing it. It must be signed and witnessed with the same formality as the will and is read alongside it. Codicils suit small changes, such as replacing an executor or adding a modest gift.
Learn morearrow_forwardConsumer Duty
The Consumer Duty is an FCA standard requiring firms to deliver good outcomes for retail customers. It spans four outcomes — products and services, price and value, consumer understanding and consumer support — and requires firms to evidence results rather than simply follow process.
Learn morearrow_forwardCourt of Protection
The Court of Protection is the specialist court for decisions affecting people who lack mental capacity. It appoints deputies, resolves disputes about attorneys, decides one-off matters such as statutory wills and large gifts, and can revoke a power of attorney that is being misused.
Learn morearrow_forwardCritical Illness Cover
Critical illness cover pays a tax-free lump sum if you are diagnosed with one of the specific conditions listed in the policy and survive a set period, usually 14 days. It pays on diagnosis, not on death, and the definitions vary meaningfully between insurers.
Learn morearrow_forwardDeath in Service Benefit
Death in service is a lump sum paid by an employer if an employee dies while still employed, usually a multiple of salary. It is normally paid through a discretionary trust, so it follows the nomination held by the scheme — not your will.
Learn morearrow_forwardDeclaration of Trust
A declaration of trust records who really owns what share of a property and on what terms, even where the legal title suggests otherwise. It is used where contributions were unequal, where a family member helped with a deposit, or where a beneficial owner is not named on the title.
Learn morearrow_forwardDeed of Variation
A deed of variation lets beneficiaries redirect part or all of an inheritance to someone else after a death. If it is made within two years of the death and correctly worded, it is treated for inheritance tax purposes as though the deceased had made the gift themselves.
Learn morearrow_forwardDefined Benefit Pension
A defined benefit pension pays a guaranteed income in retirement based on salary and length of service rather than on investment performance. The employer, not the member, carries the investment risk. Most private sector schemes are now closed to new members.
Learn morearrow_forwardDefined Contribution Pension
A defined contribution pension builds a pot from contributions plus investment returns. The value at retirement depends on what was paid in and how the investments performed, and the member carries the investment risk. Benefits can normally be taken from age 55, rising to 57 from April 2028.
Learn morearrow_forwardDeputyship
A deputyship is a Court of Protection order appointing someone to make decisions for a person who has already lost capacity and has no valid power of attorney. It is slower, costlier and more heavily supervised than an LPA, with annual reporting and a security bond required.
Learn morearrow_forwardDigital Assets
Digital assets are things of value held in digital form: cryptocurrency, domain names, online business accounts, monetised channels, loyalty points and stored media. Some are genuine property forming part of the estate; others are only a personal licence that ends at death.
Learn morearrow_forwardDiscretionary Trust
A discretionary trust gives trustees the power to decide which beneficiaries within a defined class receive income or capital, how much, and when. No beneficiary has an automatic right to anything, which makes the trust flexible where circumstances may change.
Learn morearrow_forwardEnduring Power of Attorney
An enduring power of attorney is the predecessor to the property and financial affairs LPA. No new EPAs could be made after 30 September 2007, but those signed before then remain valid and must be registered with the Office of the Public Guardian once the donor's capacity begins to fail.
Learn morearrow_forwardEnterprise Investment Scheme
The enterprise investment scheme offers tax reliefs for investing in qualifying smaller, higher-risk trading companies: income tax relief on subscriptions, capital gains deferral, tax-free growth after three years, and loss relief. The investments are illiquid and can fail completely.
Learn morearrow_forwardEstate
An estate is everything a person owns at the date of death, less everything they owe. It includes property, savings, investments, business interests, vehicles, possessions and digital assets, minus mortgages, loans, funeral costs and other liabilities. Inheritance tax is charged on the net figure.
Learn morearrow_forwardExecutor
An executor is the person named in a will to administer the estate: gathering assets, paying debts and inheritance tax, and distributing what remains to beneficiaries. The role carries personal legal liability and continues until the estate is fully wound up and accounted for.
Learn morearrow_forwardExpression of Wish
An expression of wish tells pension scheme trustees who you would like to receive your death benefits. It is not legally binding and it is not governed by your will — which is exactly why an out-of-date nomination can send a lifetime's pension to a former partner.
Learn morearrow_forwardFact Find
A fact find is the structured information-gathering an adviser completes before making a recommendation. It records circumstances, objectives, income, assets, liabilities, attitude to risk and capacity for loss, and forms the evidence base on which suitability rests.
Learn morearrow_forwardFinancial Conduct Authority
The Financial Conduct Authority is the UK regulator for financial services firms and markets. It authorises firms, sets conduct rules, supervises behaviour and takes enforcement action. Its objectives are consumer protection, market integrity and effective competition in consumers' interests.
Learn morearrow_forwardFreehold
Freehold means you own the property and the land it stands on outright, for an unlimited period. There is no landlord, no ground rent, and no lease term running down. Most houses in England and Wales are freehold.
Learn morearrow_forwardGift with Reservation of Benefit
A gift with reservation of benefit is a gift you make but continue to benefit from — most commonly giving a house to children while still living in it rent-free. For inheritance tax the asset is treated as though you still own it, whenever you die.
Learn morearrow_forwardGrant of Probate
A grant of probate is the court document confirming an executor's authority to administer an estate under a valid will. Banks, registrars, share registrars and buyers rely on it before releasing funds or transferring assets. It is issued by HM Courts and Tribunals Service in England and Wales.
Learn morearrow_forwardHeld-Away Assets
Held-away assets are the accounts, pensions, policies and property a client holds outside their adviser's or firm's management. They are frequently the larger part of the client's wealth, and they remain invisible to planning until the client discloses or connects them.
Learn morearrow_forwardIncome Protection
Income protection pays a regular replacement income, usually tax free, if illness or injury stops you working. Payments begin after a chosen waiting period and can continue until you recover, retire, or the policy term ends.
Learn morearrow_forwardInheritance Tax
Inheritance tax is a UK tax on the value of a person's estate when they die, and on some lifetime gifts. It is charged at 40% on value above the available tax-free thresholds. Transfers between spouses and civil partners are generally exempt, whatever their size.
Learn morearrow_forwardIntergenerational Wealth Transfer
Intergenerational wealth transfer is the passing of assets from one generation to the next, through inheritance, lifetime gifting or trusts. UK estimates place the value in the trillions over the coming decades, concentrated in residential property and pension wealth.
Learn morearrow_forwardIntestacy
Intestacy is what happens when someone dies without a valid will. Statutory rules then decide who inherits, in a fixed order prioritising spouses and blood relatives. Unmarried partners, stepchildren, friends and charities receive nothing, however close the relationship was.
Learn morearrow_forwardISA
An ISA is a tax-free wrapper for savings and investments. Interest, dividends and gains inside an ISA are free of UK income tax and capital gains tax. The overall allowance is £20,000 per person for the 2026/27 tax year, and unused allowance does not carry over.
Learn morearrow_forwardJoint Tenants
Joint tenants own property together in undivided shares. When one owner dies, their interest passes automatically to the survivor by survivorship, regardless of what their will says. The share does not form part of the deceased's estate for distribution.
Learn morearrow_forwardJunior ISA
A junior ISA is a tax-free savings or investment account for a child under 18, opened by a parent or guardian. It has its own annual allowance, separate from the adult ISA limit. The child takes control of the account at 16 and can withdraw the money at 18.
Learn morearrow_forwardLasting Power of Attorney
A lasting power of attorney is a legal document appointing one or more people to make decisions for you if you cannot make them yourself. There are two types — property and financial affairs, and health and welfare — and each must be registered before it can be used.
Learn morearrow_forwardLeasehold
Leasehold means you own the right to occupy a property for a fixed number of years under a lease, while someone else owns the freehold. Most flats in England and Wales are leasehold, and the value falls as the remaining term shortens.
Learn morearrow_forwardLegacy Contact
A legacy contact is a person you nominate inside a platform's own settings to access some of your account data after your death. Apple and Google both offer versions of this. It is configured within the service and works independently of your will.
Learn morearrow_forwardLetter of Wishes
A letter of wishes is an informal, private document sitting alongside a will or trust that explains the reasoning behind it. It is not legally binding, but executors and trustees are expected to read it and take it into account when exercising their discretion.
Learn morearrow_forwardLetters of Administration
Letters of administration are the court document appointing someone to administer an estate where there is no valid will, or where no executor is able or willing to act. The person appointed is called an administrator and holds broadly the same powers as an executor.
Learn morearrow_forwardLife Insurance
Life insurance pays a lump sum, or an income, when the person covered dies. It is used to clear a mortgage, replace lost income, provide for children, or meet an expected inheritance tax bill. Cover can run for a fixed term or for life.
Learn morearrow_forwardLife Interest Trust
A life interest trust gives one beneficiary — the life tenant — the right to income from the trust, or to live in a property, for life. The capital then passes to others, the remaindermen. It separates who benefits now from who owns eventually.
Learn morearrow_forwardLifetime ISA
A lifetime ISA is for buying a first home or saving for retirement. You can pay in up to £4,000 a year between 18 and 50, and the government adds a 25% bonus. Withdrawals for any other purpose before age 60 carry a 25% charge.
Learn morearrow_forwardLPA for Health and Welfare
This type of lasting power of attorney covers medical treatment, care arrangements and daily routine. Unlike the financial version it can only be used once you have lost the capacity to make the decision yourself, and authority over life-sustaining treatment must be granted expressly.
Learn morearrow_forwardLPA for Property and Financial Affairs
This type of lasting power of attorney covers money and property: operating bank accounts, paying bills, managing investments, claiming benefits and selling a home. Once registered it can be used while you still have capacity, if you have given permission for that in the document.
Learn morearrow_forwardMental Capacity
Mental capacity is the ability to understand, retain, weigh up and communicate a decision at the time it needs to be made. Under the Mental Capacity Act 2005 capacity is presumed, assessed decision by decision, and losing it for one decision does not mean losing it for all.
Learn morearrow_forwardMirror Will
Mirror wills are two near-identical wills, usually made by a couple, in which each leaves their estate to the other and then on to the same beneficiaries. They remain separate documents, and either person can change or revoke their own at any time — including after the first death.
Learn morearrow_forwardMutual Wills
Mutual wills are wills made by two people under a binding agreement not to change them after the first person dies. Unlike mirror wills, the survivor cannot revoke the arrangement — equity imposes a constructive trust over the estate to enforce the agreed terms.
Learn morearrow_forwardNil Rate Band
The nil rate band is the amount of an estate charged to inheritance tax at 0%. It is £325,000 for the 2026/27 tax year and has been at that level since April 2009. Value above it is generally taxed at 40%.
Learn morearrow_forwardNormal Expenditure Out of Income
This exemption makes regular gifts from surplus income immediately free of inheritance tax, with no upper limit and no seven-year wait. The gifts must form a pattern, be made from income rather than capital, and leave the giver's usual standard of living intact.
Learn morearrow_forwardOffice of the Public Guardian
The Office of the Public Guardian is the government body that registers lasting and enduring powers of attorney, supervises court-appointed deputies, and investigates concerns about how attorneys and deputies are acting. It covers England and Wales.
Learn morearrow_forwardOpen Banking
Open banking lets you give a regulated provider secure, read-only access to your bank account data, or permission to initiate payments, through an API rather than by sharing your login details. Access is consent-based, time-limited and can be withdrawn at any time.
Learn morearrow_forwardOpen Finance
Open finance extends open banking principles beyond current accounts to pensions, investments, mortgages, savings and insurance. It allows a consumer to bring a complete financial picture into a single permissioned view, rather than one product type at a time.
Learn morearrow_forwardPension Drawdown
Pension drawdown lets you take money from a defined contribution pension while the rest stays invested. You decide how much to take and when. The income is not guaranteed — the pot can be exhausted if withdrawals outrun investment returns.
Learn morearrow_forwardPersonal Pension
A personal pension is a retirement scheme you arrange yourself rather than through an employer. You choose the provider and what to contribute, and receive tax relief on contributions. It is a defined contribution arrangement, so the value depends on contributions and investment performance.
Learn morearrow_forwardPersonal Representative
Personal representative is the collective term for whoever is legally responsible for administering an estate — an executor where there is a will, an administrator where there is not. HMRC, courts and financial institutions use it as the umbrella term covering both roles.
Learn morearrow_forwardPotentially Exempt Transfer
A potentially exempt transfer is a lifetime gift to another individual, or to a bare or disabled person's trust, that becomes completely free of inheritance tax if the giver survives seven years. Die within that period and the gift is brought back into the estate calculation.
Learn morearrow_forwardProbate
Probate is the legal process of proving a will and obtaining authority to deal with someone's estate. It confirms who may collect assets, settle debts and distribute what remains. Not every estate needs it — small estates and assets held as joint tenants often pass without a grant.
Learn morearrow_forwardResidence Nil Rate Band
The residence nil rate band is an additional inheritance tax allowance of £175,000 for 2026/27, available where a main home passes to direct descendants such as children, stepchildren, adopted children or grandchildren. It is tapered away for estates worth more than £2 million.
Learn morearrow_forwardResiduary Estate
The residuary estate is everything left after debts, taxes, funeral costs, administration expenses and specific gifts have been paid. Whoever inherits it — the residuary beneficiary — absorbs the effect of any shortfall, growth or unexpected liability in the estate.
Learn morearrow_forwardSeed Enterprise Investment Scheme
The seed enterprise investment scheme offers enhanced tax reliefs for investing in very early-stage companies: 50% income tax relief on qualifying subscriptions, tax-free growth after three years, and generous loss relief. The risk of total loss is correspondingly high.
Learn morearrow_forwardSelf-Invested Personal Pension
A self-invested personal pension is a personal pension with a much wider investment choice, allowing holdings such as individual shares, funds, investment trusts, bonds and commercial property. It offers more control than a standard personal pension, usually at a higher cost.
Learn morearrow_forwardSettlor
The settlor is the person who creates a trust and transfers assets into it. Once transferred, the assets generally leave the settlor's ownership — though anti-avoidance rules can still tax the settlor on the trust's income or gains where they or their spouse retain a benefit.
Learn morearrow_forwardSeven-Year Rule
The seven-year rule is the principle that most lifetime gifts drop out of an estate for inheritance tax once the giver has survived seven years from the date of the gift. Survive less, and the gift is counted back against the estate's tax-free threshold.
Learn morearrow_forwardStakeholder Pension
A stakeholder pension is a simple, low-cost personal pension meeting government minimum standards: capped charges, low minimum contributions, and no penalties on transfer or on stopping payments. It offers a limited investment range and a default fund for people who do not want to choose.
Learn morearrow_forwardState Pension
The state pension is a regular payment from the government from state pension age, based on your National Insurance record. The new state pension generally requires ten qualifying years to receive anything and around 35 for the full amount.
Learn morearrow_forwardStocks and Shares ISA
A stocks and shares ISA holds investments — funds, shares, bonds and investment trusts — with returns free of UK capital gains tax and no further tax on dividends. Values can fall as well as rise, so it suits money you can leave invested for the medium to long term.
Learn morearrow_forwardTaper Relief
Taper relief reduces the inheritance tax payable on a failed lifetime gift where death occurs between three and seven years after it was made. It reduces the tax on the gift, not the value of the gift, and only has any effect once gifts exceed the available nil rate band.
Learn morearrow_forwardTenants in Common
Tenants in common each own a distinct share of a property, which can be equal or unequal. Each share can be left by will, sold, or placed in trust. Survivorship does not apply, so the share forms part of the owner's estate on death.
Learn morearrow_forwardTerm Life Insurance
Term life insurance covers you for a fixed period and pays out only if you die within it. It is the cheapest form of life cover. If the term ends and you are still alive, nothing is paid and the policy simply stops — there is no cash value.
Learn morearrow_forwardTitle Deeds
Title deeds are the documents proving ownership of a property. Most land in England and Wales is now registered, so the definitive record is the electronic title held by HM Land Registry rather than the original paper deeds.
Learn morearrow_forwardTrust
A trust is a legal arrangement in which one person, the settlor, transfers assets to trustees to hold and manage for the benefit of others. Legal ownership and benefit are split: the trustees hold title, the beneficiaries receive the value.
Learn morearrow_forwardTrustee
A trustee holds and manages trust assets for the beneficiaries. Trustees owe fiduciary duties: to act in the beneficiaries' interests, follow the trust deed, invest prudently, keep proper accounts, and avoid conflicts. They are personally liable for breaches of trust.
Learn morearrow_forwardTrust Registration Service
The Trust Registration Service is HMRC's register of trusts. Most UK express trusts must register and keep their details current, whether or not they have any tax to pay. A limited set of trusts is excluded, including many life policy trusts and will trusts wound up within two years of death.
Learn morearrow_forwardVenture Capital Trust
A venture capital trust is a listed company investing in a portfolio of small, higher-risk trading businesses. Investors receive income tax relief on new shares up to an annual limit, tax-free dividends and tax-free growth, provided the shares are held for five years.
Learn morearrow_forwardVulnerable Customer
A vulnerable customer is someone especially susceptible to harm, particularly where a firm is not acting with appropriate care. The FCA identifies four drivers: health, life events, resilience and capability. Vulnerability may be temporary, fluctuating or permanent.
Learn morearrow_forwardWhole of Life Insurance
Whole of life insurance covers you until death, whenever it comes, as long as premiums are maintained. It costs considerably more than term cover and is most often used to meet a known future liability, such as an inheritance tax bill, rather than a temporary need.
Learn morearrow_forwardWill
A will is a legal document setting out who inherits your estate, who administers it, and who cares for your children after you die. To be valid in England and Wales it must be in writing, signed by you, and witnessed by two people who do not benefit from it.
Learn morearrow_forwardWorkplace Pension
A workplace pension is a retirement scheme arranged by an employer. Under automatic enrolment most eligible UK employees are placed into one by default, with contributions from both the worker and the employer. Schemes are either defined benefit or defined contribution.
Learn morearrow_forwardWriting a Policy in Trust
Writing a life policy in trust means the payout belongs to the trust rather than to your estate. It is normally paid without waiting for probate, sits outside the estate for inheritance tax, and goes to the people you named — not to whoever your will happens to say.
Learn morearrow_forwardAdvance Decision
An advance decision to refuse treatment lets you set out in advance the medical treatments you do not want to receive if you later lose capacity. It is legally binding on clinicians, and must be in writing, signed and witnessed if it covers life-sustaining treatment.
Learn morearrow_forwardAnnual Allowance
The annual allowance is the maximum that can be paid into your pensions each tax year with tax relief — currently £60,000, or 100% of your relevant UK earnings if lower. Unused allowance from the previous three tax years can generally be carried forward.
Learn morearrow_forwardAnnuity
An annuity is an insurance contract converting a pension pot into a guaranteed income, usually for life. Once bought it generally cannot be reversed. The income depends on the size of the pot, your age, your health and the options chosen, such as a spouse's pension or inflation protection.
Learn morearrow_forwardAgricultural Property Relief
Agricultural property relief reduces the value of qualifying farmland and farm buildings for inheritance tax. Since 6 April 2026 it shares a single £2.5 million 100% relief allowance with business property relief, with relief on value above that limited to 50%.
Learn morearrow_forwardBare Trust
A bare trust holds assets for a named beneficiary who is absolutely entitled to them. The trustees have no discretion — they simply hold the assets until the beneficiary calls for them. In England and Wales the beneficiary can demand them outright at 18; in Scotland the age is 16.
Learn morearrow_forwardBeneficiary
A beneficiary is a person, charity or organisation entitled to receive something from a will, trust, pension or insurance policy. A beneficiary may inherit a specific item, a fixed cash sum, a share of the residue, or a benefit held on trust for them.
Learn morearrow_forwardBusiness Property Relief
Business property relief reduces the value of qualifying business assets for inheritance tax. From 6 April 2026, 100% relief applies only to the first £2.5 million of combined business and agricultural property, with relief on value above that limited to 50%.
Learn morearrow_forwardConsumer Duty
The Consumer Duty is an FCA standard requiring firms to deliver good outcomes for retail customers. It spans four outcomes — products and services, price and value, consumer understanding and consumer support — and requires firms to evidence results rather than simply follow process.
Learn morearrow_forwardCritical Illness Cover
Critical illness cover pays a tax-free lump sum if you are diagnosed with one of the specific conditions listed in the policy and survive a set period, usually 14 days. It pays on diagnosis, not on death, and the definitions vary meaningfully between insurers.
Learn morearrow_forwardCash ISA
A cash ISA is a savings account where interest is paid free of UK income tax. For 2026/27 the full £20,000 ISA allowance can go into cash. From 6 April 2027 the cash limit falls to £12,000 for savers under 65, while those aged 65 and over keep the full £20,000.
Learn morearrow_forwardCourt of Protection
The Court of Protection is the specialist court for decisions affecting people who lack mental capacity. It appoints deputies, resolves disputes about attorneys, decides one-off matters such as statutory wills and large gifts, and can revoke a power of attorney that is being misused.
Learn morearrow_forwardCodicil
A codicil is a document that amends an existing will without replacing it. It must be signed and witnessed with the same formality as the will and is read alongside it. Codicils suit small changes, such as replacing an executor or adding a modest gift.
Learn morearrow_forwardCapital Gains Tax
Capital gains tax is charged on the profit made when you sell or give away an asset that has risen in value — typically shares, second properties or business interests. Your main home is usually exempt, as are assets held inside ISAs and pensions.
Learn morearrow_forwardDefined Contribution Pension
A defined contribution pension builds a pot from contributions plus investment returns. The value at retirement depends on what was paid in and how the investments performed, and the member carries the investment risk. Benefits can normally be taken from age 55, rising to 57 from April 2028.
Learn morearrow_forwardDefined Benefit Pension
A defined benefit pension pays a guaranteed income in retirement based on salary and length of service rather than on investment performance. The employer, not the member, carries the investment risk. Most private sector schemes are now closed to new members.
Learn morearrow_forwardDiscretionary Trust
A discretionary trust gives trustees the power to decide which beneficiaries within a defined class receive income or capital, how much, and when. No beneficiary has an automatic right to anything, which makes the trust flexible where circumstances may change.
Learn morearrow_forwardDeputyship
A deputyship is a Court of Protection order appointing someone to make decisions for a person who has already lost capacity and has no valid power of attorney. It is slower, costlier and more heavily supervised than an LPA, with annual reporting and a security bond required.
Learn morearrow_forwardDeed of Variation
A deed of variation lets beneficiaries redirect part or all of an inheritance to someone else after a death. If it is made within two years of the death and correctly worded, it is treated for inheritance tax purposes as though the deceased had made the gift themselves.
Learn morearrow_forwardDigital Assets
Digital assets are things of value held in digital form: cryptocurrency, domain names, online business accounts, monetised channels, loyalty points and stored media. Some are genuine property forming part of the estate; others are only a personal licence that ends at death.
Learn morearrow_forwardDeclaration of Trust
A declaration of trust records who really owns what share of a property and on what terms, even where the legal title suggests otherwise. It is used where contributions were unequal, where a family member helped with a deposit, or where a beneficial owner is not named on the title.
Learn morearrow_forwardDeath in Service Benefit
Death in service is a lump sum paid by an employer if an employee dies while still employed, usually a multiple of salary. It is normally paid through a discretionary trust, so it follows the nomination held by the scheme — not your will.
Learn morearrow_forwardEnduring Power of Attorney
An enduring power of attorney is the predecessor to the property and financial affairs LPA. No new EPAs could be made after 30 September 2007, but those signed before then remain valid and must be registered with the Office of the Public Guardian once the donor's capacity begins to fail.
Learn morearrow_forwardEstate
An estate is everything a person owns at the date of death, less everything they owe. It includes property, savings, investments, business interests, vehicles, possessions and digital assets, minus mortgages, loans, funeral costs and other liabilities. Inheritance tax is charged on the net figure.
Learn morearrow_forwardExecutor
An executor is the person named in a will to administer the estate: gathering assets, paying debts and inheritance tax, and distributing what remains to beneficiaries. The role carries personal legal liability and continues until the estate is fully wound up and accounted for.
Learn morearrow_forwardEnterprise Investment Scheme
The enterprise investment scheme offers tax reliefs for investing in qualifying smaller, higher-risk trading companies: income tax relief on subscriptions, capital gains deferral, tax-free growth after three years, and loss relief. The investments are illiquid and can fail completely.
Learn morearrow_forwardExpression of Wish
An expression of wish tells pension scheme trustees who you would like to receive your death benefits. It is not legally binding and it is not governed by your will — which is exactly why an out-of-date nomination can send a lifetime's pension to a former partner.
Learn morearrow_forwardFact Find
A fact find is the structured information-gathering an adviser completes before making a recommendation. It records circumstances, objectives, income, assets, liabilities, attitude to risk and capacity for loss, and forms the evidence base on which suitability rests.
Learn morearrow_forwardFinancial Conduct Authority
The Financial Conduct Authority is the UK regulator for financial services firms and markets. It authorises firms, sets conduct rules, supervises behaviour and takes enforcement action. Its objectives are consumer protection, market integrity and effective competition in consumers' interests.
Learn morearrow_forwardFreehold
Freehold means you own the property and the land it stands on outright, for an unlimited period. There is no landlord, no ground rent, and no lease term running down. Most houses in England and Wales are freehold.
Learn morearrow_forwardGrant of Probate
A grant of probate is the court document confirming an executor's authority to administer an estate under a valid will. Banks, registrars, share registrars and buyers rely on it before releasing funds or transferring assets. It is issued by HM Courts and Tribunals Service in England and Wales.
Learn morearrow_forwardGift with Reservation of Benefit
A gift with reservation of benefit is a gift you make but continue to benefit from — most commonly giving a house to children while still living in it rent-free. For inheritance tax the asset is treated as though you still own it, whenever you die.
Learn morearrow_forwardHeld-Away Assets
Held-away assets are the accounts, pensions, policies and property a client holds outside their adviser's or firm's management. They are frequently the larger part of the client's wealth, and they remain invisible to planning until the client discloses or connects them.
Learn morearrow_forwardIncome Protection
Income protection pays a regular replacement income, usually tax free, if illness or injury stops you working. Payments begin after a chosen waiting period and can continue until you recover, retire, or the policy term ends.
Learn morearrow_forwardISA
An ISA is a tax-free wrapper for savings and investments. Interest, dividends and gains inside an ISA are free of UK income tax and capital gains tax. The overall allowance is £20,000 per person for the 2026/27 tax year, and unused allowance does not carry over.
Learn morearrow_forwardIntestacy
Intestacy is what happens when someone dies without a valid will. Statutory rules then decide who inherits, in a fixed order prioritising spouses and blood relatives. Unmarried partners, stepchildren, friends and charities receive nothing, however close the relationship was.
Learn morearrow_forwardIntergenerational Wealth Transfer
Intergenerational wealth transfer is the passing of assets from one generation to the next, through inheritance, lifetime gifting or trusts. UK estimates place the value in the trillions over the coming decades, concentrated in residential property and pension wealth.
Learn morearrow_forwardInheritance Tax
Inheritance tax is a UK tax on the value of a person's estate when they die, and on some lifetime gifts. It is charged at 40% on value above the available tax-free thresholds. Transfers between spouses and civil partners are generally exempt, whatever their size.
Learn morearrow_forwardJunior ISA
A junior ISA is a tax-free savings or investment account for a child under 18, opened by a parent or guardian. It has its own annual allowance, separate from the adult ISA limit. The child takes control of the account at 16 and can withdraw the money at 18.
Learn morearrow_forwardJoint Tenants
Joint tenants own property together in undivided shares. When one owner dies, their interest passes automatically to the survivor by survivorship, regardless of what their will says. The share does not form part of the deceased's estate for distribution.
Learn morearrow_forwardLife Insurance
Life insurance pays a lump sum, or an income, when the person covered dies. It is used to clear a mortgage, replace lost income, provide for children, or meet an expected inheritance tax bill. Cover can run for a fixed term or for life.
Learn morearrow_forwardLifetime ISA
A lifetime ISA is for buying a first home or saving for retirement. You can pay in up to £4,000 a year between 18 and 50, and the government adds a 25% bonus. Withdrawals for any other purpose before age 60 carry a 25% charge.
Learn morearrow_forwardLife Interest Trust
A life interest trust gives one beneficiary — the life tenant — the right to income from the trust, or to live in a property, for life. The capital then passes to others, the remaindermen. It separates who benefits now from who owns eventually.
Learn morearrow_forwardLPA for Health and Welfare
This type of lasting power of attorney covers medical treatment, care arrangements and daily routine. Unlike the financial version it can only be used once you have lost the capacity to make the decision yourself, and authority over life-sustaining treatment must be granted expressly.
Learn morearrow_forwardLPA for Property and Financial Affairs
This type of lasting power of attorney covers money and property: operating bank accounts, paying bills, managing investments, claiming benefits and selling a home. Once registered it can be used while you still have capacity, if you have given permission for that in the document.
Learn morearrow_forwardLasting Power of Attorney
A lasting power of attorney is a legal document appointing one or more people to make decisions for you if you cannot make them yourself. There are two types — property and financial affairs, and health and welfare — and each must be registered before it can be used.
Learn morearrow_forwardLetter of Wishes
A letter of wishes is an informal, private document sitting alongside a will or trust that explains the reasoning behind it. It is not legally binding, but executors and trustees are expected to read it and take it into account when exercising their discretion.
Learn morearrow_forwardLetters of Administration
Letters of administration are the court document appointing someone to administer an estate where there is no valid will, or where no executor is able or willing to act. The person appointed is called an administrator and holds broadly the same powers as an executor.
Learn morearrow_forwardLegacy Contact
A legacy contact is a person you nominate inside a platform's own settings to access some of your account data after your death. Apple and Google both offer versions of this. It is configured within the service and works independently of your will.
Learn morearrow_forwardLeasehold
Leasehold means you own the right to occupy a property for a fixed number of years under a lease, while someone else owns the freehold. Most flats in England and Wales are leasehold, and the value falls as the remaining term shortens.
Learn morearrow_forwardMental Capacity
Mental capacity is the ability to understand, retain, weigh up and communicate a decision at the time it needs to be made. Under the Mental Capacity Act 2005 capacity is presumed, assessed decision by decision, and losing it for one decision does not mean losing it for all.
Learn morearrow_forwardMutual Wills
Mutual wills are wills made by two people under a binding agreement not to change them after the first person dies. Unlike mirror wills, the survivor cannot revoke the arrangement — equity imposes a constructive trust over the estate to enforce the agreed terms.
Learn morearrow_forwardMirror Will
Mirror wills are two near-identical wills, usually made by a couple, in which each leaves their estate to the other and then on to the same beneficiaries. They remain separate documents, and either person can change or revoke their own at any time — including after the first death.
Learn morearrow_forwardNormal Expenditure Out of Income
This exemption makes regular gifts from surplus income immediately free of inheritance tax, with no upper limit and no seven-year wait. The gifts must form a pattern, be made from income rather than capital, and leave the giver's usual standard of living intact.
Learn morearrow_forwardNil Rate Band
The nil rate band is the amount of an estate charged to inheritance tax at 0%. It is £325,000 for the 2026/27 tax year and has been at that level since April 2009. Value above it is generally taxed at 40%.
Learn morearrow_forwardOpen Finance
Open finance extends open banking principles beyond current accounts to pensions, investments, mortgages, savings and insurance. It allows a consumer to bring a complete financial picture into a single permissioned view, rather than one product type at a time.
Learn morearrow_forwardOffice of the Public Guardian
The Office of the Public Guardian is the government body that registers lasting and enduring powers of attorney, supervises court-appointed deputies, and investigates concerns about how attorneys and deputies are acting. It covers England and Wales.
Learn morearrow_forwardOpen Banking
Open banking lets you give a regulated provider secure, read-only access to your bank account data, or permission to initiate payments, through an API rather than by sharing your login details. Access is consent-based, time-limited and can be withdrawn at any time.
Learn morearrow_forwardPension Drawdown
Pension drawdown lets you take money from a defined contribution pension while the rest stays invested. You decide how much to take and when. The income is not guaranteed — the pot can be exhausted if withdrawals outrun investment returns.
Learn morearrow_forwardPersonal Pension
A personal pension is a retirement scheme you arrange yourself rather than through an employer. You choose the provider and what to contribute, and receive tax relief on contributions. It is a defined contribution arrangement, so the value depends on contributions and investment performance.
Learn morearrow_forwardPersonal Representative
Personal representative is the collective term for whoever is legally responsible for administering an estate — an executor where there is a will, an administrator where there is not. HMRC, courts and financial institutions use it as the umbrella term covering both roles.
Learn morearrow_forwardProbate
Probate is the legal process of proving a will and obtaining authority to deal with someone's estate. It confirms who may collect assets, settle debts and distribute what remains. Not every estate needs it — small estates and assets held as joint tenants often pass without a grant.
Learn morearrow_forwardPotentially Exempt Transfer
A potentially exempt transfer is a lifetime gift to another individual, or to a bare or disabled person's trust, that becomes completely free of inheritance tax if the giver survives seven years. Die within that period and the gift is brought back into the estate calculation.
Learn morearrow_forwardResiduary Estate
The residuary estate is everything left after debts, taxes, funeral costs, administration expenses and specific gifts have been paid. Whoever inherits it — the residuary beneficiary — absorbs the effect of any shortfall, growth or unexpected liability in the estate.
Learn morearrow_forwardResidence Nil Rate Band
The residence nil rate band is an additional inheritance tax allowance of £175,000 for 2026/27, available where a main home passes to direct descendants such as children, stepchildren, adopted children or grandchildren. It is tapered away for estates worth more than £2 million.
Learn morearrow_forwardStocks and Shares ISA
A stocks and shares ISA holds investments — funds, shares, bonds and investment trusts — with returns free of UK capital gains tax and no further tax on dividends. Values can fall as well as rise, so it suits money you can leave invested for the medium to long term.
Learn morearrow_forwardStakeholder Pension
A stakeholder pension is a simple, low-cost personal pension meeting government minimum standards: capped charges, low minimum contributions, and no penalties on transfer or on stopping payments. It offers a limited investment range and a default fund for people who do not want to choose.
Learn morearrow_forwardSeed Enterprise Investment Scheme
The seed enterprise investment scheme offers enhanced tax reliefs for investing in very early-stage companies: 50% income tax relief on qualifying subscriptions, tax-free growth after three years, and generous loss relief. The risk of total loss is correspondingly high.
Learn morearrow_forwardState Pension
The state pension is a regular payment from the government from state pension age, based on your National Insurance record. The new state pension generally requires ten qualifying years to receive anything and around 35 for the full amount.
Learn morearrow_forwardSelf-Invested Personal Pension
A self-invested personal pension is a personal pension with a much wider investment choice, allowing holdings such as individual shares, funds, investment trusts, bonds and commercial property. It offers more control than a standard personal pension, usually at a higher cost.
Learn morearrow_forwardSeven-Year Rule
The seven-year rule is the principle that most lifetime gifts drop out of an estate for inheritance tax once the giver has survived seven years from the date of the gift. Survive less, and the gift is counted back against the estate's tax-free threshold.
Learn morearrow_forwardSettlor
The settlor is the person who creates a trust and transfers assets into it. Once transferred, the assets generally leave the settlor's ownership — though anti-avoidance rules can still tax the settlor on the trust's income or gains where they or their spouse retain a benefit.
Learn morearrow_forwardTerm Life Insurance
Term life insurance covers you for a fixed period and pays out only if you die within it. It is the cheapest form of life cover. If the term ends and you are still alive, nothing is paid and the policy simply stops — there is no cash value.
Learn morearrow_forwardTrust
A trust is a legal arrangement in which one person, the settlor, transfers assets to trustees to hold and manage for the benefit of others. Legal ownership and benefit are split: the trustees hold title, the beneficiaries receive the value.
Learn morearrow_forwardTitle Deeds
Title deeds are the documents proving ownership of a property. Most land in England and Wales is now registered, so the definitive record is the electronic title held by HM Land Registry rather than the original paper deeds.
Learn morearrow_forwardTenants in Common
Tenants in common each own a distinct share of a property, which can be equal or unequal. Each share can be left by will, sold, or placed in trust. Survivorship does not apply, so the share forms part of the owner's estate on death.
Learn morearrow_forwardTaper Relief
Taper relief reduces the inheritance tax payable on a failed lifetime gift where death occurs between three and seven years after it was made. It reduces the tax on the gift, not the value of the gift, and only has any effect once gifts exceed the available nil rate band.
Learn morearrow_forwardTrust Registration Service
The Trust Registration Service is HMRC's register of trusts. Most UK express trusts must register and keep their details current, whether or not they have any tax to pay. A limited set of trusts is excluded, including many life policy trusts and will trusts wound up within two years of death.
Learn morearrow_forwardTrustee
A trustee holds and manages trust assets for the beneficiaries. Trustees owe fiduciary duties: to act in the beneficiaries' interests, follow the trust deed, invest prudently, keep proper accounts, and avoid conflicts. They are personally liable for breaches of trust.
Learn morearrow_forwardVulnerable Customer
A vulnerable customer is someone especially susceptible to harm, particularly where a firm is not acting with appropriate care. The FCA identifies four drivers: health, life events, resilience and capability. Vulnerability may be temporary, fluctuating or permanent.
Learn morearrow_forwardVenture Capital Trust
A venture capital trust is a listed company investing in a portfolio of small, higher-risk trading businesses. Investors receive income tax relief on new shares up to an annual limit, tax-free dividends and tax-free growth, provided the shares are held for five years.
Learn morearrow_forwardWhole of Life Insurance
Whole of life insurance covers you until death, whenever it comes, as long as premiums are maintained. It costs considerably more than term cover and is most often used to meet a known future liability, such as an inheritance tax bill, rather than a temporary need.
Learn morearrow_forwardWorkplace Pension
A workplace pension is a retirement scheme arranged by an employer. Under automatic enrolment most eligible UK employees are placed into one by default, with contributions from both the worker and the employer. Schemes are either defined benefit or defined contribution.
Learn morearrow_forwardWill
A will is a legal document setting out who inherits your estate, who administers it, and who cares for your children after you die. To be valid in England and Wales it must be in writing, signed by you, and witnessed by two people who do not benefit from it.
Learn morearrow_forwardWriting a Policy in Trust
Writing a life policy in trust means the payout belongs to the trust rather than to your estate. It is normally paid without waiting for probate, sits outside the estate for inheritance tax, and goes to the people you named — not to whoever your will happens to say.
Learn morearrow_forward