Jargon Buster

If there are any more you want to see included, we’d be more than happy to expand the list. Just email us, and we’ll add them to the A-Z. Our email address is info@penderlaw.co.uk

A

Agricultural Property Tax Relief

A relief from inheritance tax that applies to the transfer of ownership of agricultural property.  The rate at which the relief applies depends on the type of property being transferred.

Attorney

Someone who is legally empowered to act on someone else’s behalf in England and Wales is called an attorney. They do not have to have any legal qualifications. In the case of appointing someone to act as an attorney as part of setting up a Lasting Power of Attorney, you are appointing someone you trust, who isn’t necessarily a lawyer, and giving them legal authority to make decisions on your behalf, should you become unable to make those decisions yourself.

B

Bare Trust

A Bare trust is a legal arrangement where a trustee holds assets for the benefit of a beneficiary, who has the right to the assets at any time, if they are 18 or over (in England and Wales), or 16 or over (in Scotland). This means the assets put into the trust will always go directly to the intended beneficiary and the income is treated as theirs and taxed as such. Bare trusts are often used to hold assets for young people – the trustees look after them until the beneficiary is old enough to have them outright. However they can also be used to hold assets for people over 18 years of age, with their consent.

Barrister (Counsel)

In England and Wales, solicitors and barristers are both legal professionals who have separate roles and responsibilities. The main distinction is that a barrister represents people in court, while a solicitor’s role is performed outside of the court.

Beneficiary

A beneficiary is a person named in the will as a recipient of a gift from the person who has died.

C

Capacity

Capacity means the ability to use and understand information to make a decision, and communicate any decision made. As capacity can sometimes change over time, it should be assessed at the time that consent is required.

Child Arrangements

Child arrangements involve making arrangements for your children if you divorce or separate, mediation and how to apply for a court order if you cannot agree.

Claimant

A person or business who brings a claim against another person or business.

Codicil

A codicil is a legal document that acts as a supplement to an existing Will. However, codicils were originally used when making a Will was a far more laborious process without the use of computers when making an amendment to a Will would involve rewriting the whole thing by hand!  These days, for ease and clarity, a fresh Will is normally preferable.

Cohabitation Agreement

A cohabitation agreement is a legally binding agreement which defines who will pay for what during the relationship and what will happen to the things you own, should you split up.  This would usually cover the property, savings, and personal belongings.  It would also specify how you would deal with any debts and joint purchases such as a car as well as documenting how any children would be supported.

Common-Law Marriage

In short, common-law marriage doesn’t exist.  It is a well-established myth which sadly many cohabitees rely on, but which holds absolutely no legal status. The only way to be sure of your financial and legal status if you are not married is by having a cohabitation agreement drawn up.

Completion

When a property sale or purchase ‘completes’ it means that the ownership of the property has been legally transferred.  The funds will have been transferred and the keys can be handed over so that the buyer can move in.

Conditional Order

Replaces the Decree Nisi stage of a divorce and is the first order bringing a marriage to an end.

Consent Order

An agreed document that is prepared in court proceedings (family or civil) that formally records the terms of a settlement that has been reached.

Contested Probate

Contested or contentious probate is a dispute about an inheritance or the validity of a Will. Put simply, it is a disagreement after someone has died about how their estate will be distributed. It may arise from concerns about the way in which the Will was drawn up or sometimes someone feeling the Will didn’t leave them what they were promised or were expecting.

Contract Pack

If you are the seller, your solicitor will prepare a contract pack (sometimes referred to as a sales pack), for the buyer’s solicitor. It provides detail about the property you are selling and crucially, via the title documents, proof that it is actually yours to sell. It will also contain replies to enquiries on issues such as planning consents or restrictions, utilities and searches which would include information on planning permission affecting the property, that the seller is aware of.

Conveyancing

Conveyancing is the legal process of transferring property ownership from one person to another. Essentially, the legal process of buying and selling a house or flat. It can however also cover other non-transactional matters such as granting easements, extending leases.

Court of Protection

The Court of Protection makes decisions on financial or welfare matters for people who can’t make decisions at the time they need to be made (they ‘lack mental capacity’). This would include matters concerning the welfare of children.

Covenant

A covenant with regard to property and land is a promise to comply /  restriction concerning what you can do as the owner of it.  If the covenant was in place when you bought it, you will be required to comply with it during your ownership.  Also see Restricted Covenant.

Custody

An out of date term to describe who a child or children primarily live with. This is now more commonly referred to as a ‘live with’ order.

D

Decree Absolute

With the introduction of No Fault Divorce in April 2022, a Decree Absolute became known as a Final Order. A Decree Absolute is an order from the court confirming that you are divorced and replaces your marriage certificate. If your divorce was started before 6th April 2022, you will get a Decree Absolute.

Decree Nisi

With the introduction of No Fault Divorce in April 2022, a Decree Nisi became known as a Conditional Order. A Conditional Order is the middle stage in the no-fault divorce process. It confirms that you have met all the legal requirements to get a divorce. If your divorce was started before 6th April 2022, you will get a Decree Nisi.

Deed of Variation

This is a document which enables beneficiaries of an Estate to legally make changes to their entitlement from a Will after the person has died. They are often used to pass a share of an estate onto another person, a charity or trust to reduce inheritance tax liabilities.

Defendant

Someone against whom a claim is brought by a claimant.

Deputy

Deputy A deputy is someone appointed by the Court of Protection to make decisions for a person who no longer has capacity.  A deputy is different to an attorney in that an attorney is someone you appoint yourself, while you still have capacity to look after and manage your affairs.

Discretionary Trust

This is a type of trust which gives the trustees greater flexibility in terms of how assets held in the trust are distributed to beneficiaries, and when.  They can be used to protect assets from being diminished by irresponsible behaviour of the beneficiaries.

Divorce

Divorce is the process of legally ending a marriage.

Duty of Care

In Tort law, a Duty of Care is a legal duty, established largely by case law, to provide a reasonable level of care when conducting any acts that could endanger others. This applies mainly to personal injury/clinical negligence claims, but it is also seen in professional negligence claims as well.

E

Easement

An easement is a legally agreed right to cross or use someone else’s land for a specified purpose.

Enduring Power of Attorney

An Enduring Power of Attorney (EPA) was the predecessor of Lasting Power of Attorney (LPA) legal document.  Both documents enable someone to appoint a person they trust to make decisions for them, should they lose capacity to make their own decisions at a point in the future.  Enduring Power of Attorney was replaced by Lasting Power of Attorney in 2007.  The main difference between the two is that LPAs can be registered with the Office of the Public Guardian with immediate effect. However, an EPA can only be registered once a person has lost mental capacity.  An LPA is not valid until registered with the OPG, a process which itself generally takes a minimum of 16 weeks.

Engrossment

An engrossment is the final printed approved version of a particular document that is going to be signed by the parties involved.

Equity Release

Equity release is a way of utilising the money tied up in your property without having to sell it and move to another home at a later stage i.e. you need to be over a certain age. The money is repaid at a later stage for example, when you pass away, move into a care home or sell your house.

Estate Administration

This is the process of dealing with someone’s assets (including property, cash, investments etc) as well as their liabilities ( loans, utilities etc) and taxes when they have died before distributing any inheritance remaining to the beneficiaries as specified in their Will, if they have one.  If there is no Will, the inheritance is distributed according to the laws of intestacy.

Exchange of Contracts

This is when the contracts are signed and exchanged by both parties which legally binds them to buying and selling the property.

Executor

An Executor is someone who has been appointed in a Will to deal with the Estate of the person who has died. An Executor may have to apply for a special legal authority before they can deal with the Estate. This is called Probate.

F

Final Order

Replaces the old style decree absolute and is the document that formally brings a marriage to an end.

Flexible Will

This is a more comprehensive Will that can involve Trusts if required, but ultimately has the ability to give your chosen Execs/ Trustees additional powers to make flexible decisions using their discretion. You complete a Letter of Wishes at the same time as your Flexible Will to provide the Execs/ Trustees with guidance. The decisions are then made at the time of your death, when actual circumstances of beneficiaries are known, together with the extent of your assets to deal with, using your Letter of Wishes as a blueprint. Flexible Wills can have advantages with regard to inheritance tax and can also potentially  protect assets from later life costs, and can also protect your beneficiaries from contingencies of life, such as divorce and bankruptcy.  There are different kinds of Flexible Wills depending on whether you are married or not.

Form of Authority

A legal document which gives your solicitor permission to share certain information and liaise with designated parties concerning your affairs.

Freehold

A freehold means that you own the property including the land on which it is built.

G

Grandparent Will

A Grandparent Will is what we would describe as a Flexible Will.  It means that your assets are held in a Trust which gives the appointed Trustees flexibility to accommodate changes in personal and financial circumstances.

Grant of Probate

This is the document which provides the Executor named in a Will with the authority to deal with the assets and liabilities of the Estate of the person who has died.  This might involve closing bank accounts, selling property and settling debts.  Some Estates do not require a Grant of Probate, these tend to be those of lower value and where the person did not own a property.  A Grant of Probate may not be needed if the person left their Estate to a surviving spouse.

H

Heads of Terms

This is a document which enables the parties to agree on the fundamental points or potential ‘deal breaker’ issues within a proposed commercial contract.  They can also be referred to as ‘letters of intent’ or a ‘memoranda of understanding’.  They are not legally binding.

I

Inheritance Tax

Inheritance tax is a tax on the estate of someone who has died, including all property, possessions and money. The standard Inheritance Tax rate is 40%. However, no inheritance tax is due on Estates which pass to a UK domiciled spouse or civil partner, entirely.

Injunction

An injunction is a Court order prohibiting a person from taking a particular action or requiring them to take a particular action. They are frequently seen in harassment cases and in boundary disputes e.g. to stop someone from taking down a boundary feature.

Intestate

Dying intestate means dying without a Will.  The rules of intestacy apply when this happens. Only married or civil partners and some other close relatives can inherit under the rules of intestacy. The law does not recognise informal relationships such as cohabitees and unmarried partners.

J

Judge

Judges hear evidence in criminal, civil and family courts, make rulings and pass sentences based on the information presented during cases.

K

King’s Counsel

King’s Counsel (KC) are barristers or solicitor advocates who have been recognised for their excellence in advocacy. KCs are also referred to as ‘Silks’.

L

Land Registry

HM Land Registry is a non-ministerial government  department whose purpose is to register the ownership of land and property in England and Wales. They provide property owners with certainty of the ownership of their property and a title plan which specifies boundaries.

Lasting Power of Attorney

A Lasting Power of Attorney (LPA) is a legal document that allows someone to choose other people (referred to as attorneys) who they want to make decisions on their behalf when they lack the mental capacity or require assistance managing their finances and / or health and welfare.

Lawyer

A lawyer (in the UK) is a generic term used to describe anyone who is a Licensed Legal Practitioner qualified to give legal advice in one or more areas of law. A solicitor and a barrister could both be considered a ‘lawyer’ in the UK.

Leasehold

You only own a leasehold property for a fixed period of time. You do not own the land the property is built on or the area above the property e.g. the flat above. The agreement between you and the landlord ( who owns the freehold of the property) is called a ‘lease’. The lease will specify how long you will own the property for and other details regarding the property such as  rights granted for the benefit of the property or reserved for others e.g. ground rent payable, service charges or a right to cross to a specified parking space. When the lease expires, the property returns to the landlord. Flats tend to be leasehold as do houses bought via a shared ownership scheme.

Legal Aid

A type of litigation funding available from certain law firms and available in specific circumstances.

Letter of Wishes

A letter of wishes is a document drawn up to accompany your Will. It is not legally binding but provides guidance to those dealing with your Estate.  They tend to be used with Flexible Wills.

Life Interest Trust

This type of trust allows a surviving spouse to be given an income or use of assets ( such as a house) until their death. Other events that end the Trust arrangement can be stipulated, such as moving into a care home or cohabiting. It is commonly used in Estate Planning for blended families to enable a spouse from a second marriage to remain in the marital home for their lifetime, whilst ensuring that children from the first marriage of the spouse who has died will still receive their inheritance eventually.

Lifetime Gifts

These can be gifts of property or money given during a person’s lifetime.  They may be subject to inheritance tax, unless the person gifting survives 7 years from the date on which the gift is given, and the person giving the gift does not continue to benefit from it.  E.g. they could not continue to live in a house they have gifted.  If they did, this would be classified as a ‘gift with reservation of benefit’, which would incur inheritance tax.

Litigation

Litigation is the process of an individual or a business taking legal action against one or more parties to resolve a dispute. It is governed by the Civil Procedure Rules, so these cases are received as civil cases.

Living Will

A Living Will ( sometimes referred to as an Advanced Decision) is a legal document setting out your wishes regarding your care to be referred to by your family, healthcare professionals and carers if, at some time in the future, you are unable to make or communicate these wishes yourself.

M

Mediation

A form of alternative dispute resolution which is aimed at bringing parties together to try and reach a settlement without involving the court. Mediation can take place at any time in a dispute, even after issuing a claim and it is often less costly than court proceedings.

Mediator

An independent person who is formally trained in mediation, who conducts a mediation and tries to encourage and facilitate a settlement.

Mirror Will

These are standard Wills whereby typically a married couple simply leave everything to each other. They tend to be set up so when one partner dies, they leave everything to the surviving spouse and then when they die, everything passes to their children.

N

No Fault Divorce

Introduced in April 2022, no fault divorce ended the need for couples to apportion blame for the breakdown of their marriage. It was introduced to try to reduce conflict and protect any children involved.

O

Office of the Public Guardian (OPG)

The OPG is a government agency which governs attorneys. Their role includes registering Lasting Power of Attorney (LPA) documents.

Overage

This is a legal agreement whereby the buyer of land agrees to pay the seller an additional amount if the value of the land increases within a specified timeframe due to an event occurring e.g. planning permission is granted.  Overage is sometimes referred to as ‘clawback’ or ‘uplift’.

P

Partnership Agreement

A partnership agreement is a legally binding document that sets out the rights, obligations, and responsibilities of partners within a partnership business. It defines things such as how the profits will be shared amongst the partners, who has authority to make decisions affecting the partnership, as well as what happens should a partner decide to retire from the partnership.

Party Wall Act

The Party Wall Act 1996 is a piece of legislation which regulates building work that affects shared walls or structures between properties. Its main purpose is to prevent and resolve disputes between neighbours concerning shared walls, fences, and boundary structures. A party wall is a shared wall usually positioned on the boundary between two properties, although it can refer to internal walls shared between flats and semi detached properties.

Personal Injury

This is the legal term used to describe a physical or psychological injury to you rather than to property.  A personal injury claim is the legal formal process of recovering compensation from the person or organisation who was responsible for your injury.

Petitioner

Before no fault divorce was introduced in April 2022, the person who began the divorce was called the ‘petitioner’ and the other party, the ‘respondent’.  Now that divorce petitions are known as ‘applications’, the person who starts the divorce is called the ‘applicant’ and the other person, the ‘respondent’.

Pre-nuptial agreement (Pre-nup)

A pre-nuptial agreement provides clarity about how a couple’s assets should be split, should they divorce. They can be useful if either of them own a business, have a sizable inheritance, or if there are children involved. There are certain specific rules surrounding the creation and validity of prenups and specialist advice should be obtained.

Private Client

Private client is the area of law where lawyers act for private individuals on legal matters such as Estate Planning, Wills, Trusts and Probate.

Probate

Confusingly, the term ‘Probate’ is used to describe the Grant of Probate as well as the process involved in obtaining it. This can be quite complex and includes various things such as making an inheritance tax return and paying any tax due, sorting out income tax and pensions, collecting in the Estate from banks, building societies and selling assets, settling any debts owed to the Estate and paying money due, and gifts of items to beneficiaries, along with preparation of accounts for the Estate.

Professional Negligence

Professional negligence occurs where a professional fails to perform their responsibilities to the required standard. A claim may be brought for compensation for damages or financial loss and would be based on a breach of contractual term, duty of care, fiduciary duty or statutory duty.

Proprietary estoppel

This is an area of law can which can be used by a person who claims a promise was made to them in the past about their inheritance of a property but which has not been honoured. It frequently affects farming families where agreements and expectations are not formally documented. The courts have the power to decide on whether the claim is valid and what compensation is appropriate.

Q

Queen’s Counsel

A QC or Queen’s Counsel (now of course referred to as KC, King’s Counsel) are barristers or solicitor advocates who have been recognised for their excellence in advocacy.

R

Replies to Enquiries

Replies to Enquiries are an opportunity for one side to formally ask the other questions about a property or land being purchased. Enquiries might include verifying the ownership of the seller and their right to sell it, confirming precise boundaries and questions on forms received and search results.  It would also be common to enquire about disputes affecting the property, what fixtures and fittings are included, and which utilities are connected.

Respondent

The person who must respond to or defend a court application.  Used primarily in family proceedings such as divorce proceedings or child arrangements proceedings.

Restrictive Covenant

These are legally binding conditions which are sometimes written into the deeds of land or property by the seller in order to define precisely what subsequent owners can or cannot do to the house or land in particular circumstances.  An example a restrictive covenant might be that a property cannot be used as a holiday let.   Also see Covenant.

S

Service Charges

This is a regular payment made by tenants and leaseholders to the landlord for services the landlord must provide under the terms of the lease.  They generally cover day to day running costs of a property for things such as buildings insurance, repairs, maintenance, improvements, or costs of management.

Small Claim

A claim for which the value falls below the small claims track threshold, currently £10,000.

Solicitor

A solicitor is a qualified legal professional who provides specialist legal advice on different areas of law.

Solicitors Regulatory Authority (SRA)

The SRA provides guidance and rules to solicitors on ethical issues, laws and regulations that affect their work. They are responsible for administering the  official register ( or roll) of solicitors and provide information to the public about solicitors, their work and the standards the public is entitled to expect.

Succession Planning

The process of succession planning involves the transfer of responsibilities and assets from one generation to the next. Planning in advance avoids uncertainty should difficult or traumatic situations arise such as illness, accidents or the sudden death of the owner.

T

Title

The Title (or Title Deeds) are an official record of ownership of land / property.  They can be a series of documents which records the historical ownership of the property as well as the present ownership.

Tort

A Tort is ‘a wrong’ in civil law, rather than criminal law, which usually requires financial compensation to make up for damage that is caused. Examples include negligence and nuisance.

Trespass

The act of entering onto or causing damage to someone else’s property.

Trust

A Trust is a way of managing assets (money, land, property or investments).  They are set up for various reasons, including controlling access to assets, to manage someone’s assets because they are too young, or do not have sufficient mental capacity to manage their own affairs. The concept of a Trust is an arrangement where assets are transferred from one person (the settlor) to another (the trustee), who holds them for the benefit of a specified list of persons, (the beneficiaries).

Trustee

A Trustee is a person or firm who holds or administers assets for the benefit of a third party.

U

Unregistered Land

This is land which has not been registered with HM Land Registry.  It doesn’t mean that the land isn’t owned but that it hasn’t been officially recorded.  The disadvantages of this are that the ownership is only officially documented in the Title Deeds so if these are lost or accidentally damaged or destroyed,  it could be difficult to prove ownership. Unregistered land is also vulnerable to property fraud.

V

W

Will

A Will is a legal document that appoints persons to administister your Estate after you die and gives them instructions on the distribution of your assets after death and can appoint guardians for minor children. There are different types of Will and getting advice on the best one for your financial and personal circumstances can also make sure you do not pay more Inheritance Tax than you need to. Types if Will include Mirror, Flexible, Trust, Discretionary Trust, Property and Living Wills.

Will Writer

A Will Writer can write Wills but does not have to be legally qualified and are not subject to the same regulatory requirements as solicitors.  Therefore, you will not have the same protection with a Will writer should something go wrong. A Will Writer also does not have experience in Estate Planning or Inheritance Tax so would not be able to advise you in this regard.

X

Y

Z