Alternative Dispute Resolution (ADR), Assured Shorthold Tenancy, Asset freezing, Bare trust, Capital Taxes Office, Conveyancing, Deed of Family Arrangement, Deferred consideration, Disabled trust, Employment tribunal, Estate, Equity release, Executor, Family Law, Freehold, Grant of Representation, Home Information Pack (HIP), Inheritance tax, Insurance bond, Investment property, Judicial review, Leasehold, Leasehold enfranchisement, Litigation, Option (property), Overage, Policy trust, Probate, Property Law, Relevant property trust, Remortgaging, Restrictive covenant, Right to buy, Search, Share Sale, Snagging, Trust, Unincorporated business, Will

An increasingly popular alternative to litigation. Indeed, some courts won't allow certain cases to be heard until ADR processes, such as mediation, have been attempted.

It has nothing to do here with legally preventing a criminal from accessing their ill-gotten gains! In our context, it's a perfectly respectable means of mitigating inheritance tax, where the owner of an asset like a house can choose to pass it to a trust now, allowing any subsequent increase in its value to go into the (tax-exempt) trust fund rather than adding to the size of the (taxable) estate. 

An arrangement between landlord and tenant to establish the rent amount for a specified minimum period, typically 6 months. This entitles the tenant to residency in the property for that period and the landlord to the given sum of rent. 

A trust that absolutely guarantees that the capital and any associated income will go directly to the named beneficiary. It's normally exempt from inheritance tax and can be an efficient way of leaving some or all of an estate to a minor. Back

A branch of HMRC (Inland Revenue) responsible for collecting "capital taxes", including inheritance tax. Back

Technically, just the transfer of ownership of a property, but usually used to describe the whole legal aspect of buying and selling a house. Buyers engage a solicitor to carry out searches. Sellers need a Home Information Pack (HIP) to describe their property, including its legal status, to potential buyers. Both buyers and sellers communicate via their respective solicitors to exchange contracts and complete the transfer. Back

A document (also known as a Deed of Variation) that enables the provisions of a will to be changed after death. It's designed to be used for consensual situations such as a surviving spouse wishing to transfer some or all of their partner's legacy to the couple's children. Back

Staggered payments that fall due after completion of a particular transaction. Back

A type of trust established to enable trustees to pay out income or capital to the disabled beneficiary of a will or lifetime trust. It can help slow down the rate at which inherited estate is consumed to finance the care of that disabled person. Back

A judicial body that makes rulings in disputes between employers and employees, such as claims for unfair dismissal or discrimination. Back

An arrangement that allows you, in a variety of ways, to retain ownership of your property while having a proportion of its value paid to you as a regular income. This approach can be used not only to obtain that stream of income but also to reduce (deliberately) the size of your estate. Clearly the supplier of the income will need to be repaid - this normally occurs when you die. Back

In the context of inheritance, the money, property and possessions of somebody who has died. An executor is appointed to distribute the estate after death, according to the provisions of the will. Back

An individual (or a group of individuals) nominated to carry out the instructions written in a will. A solicitor is often an executor. The nomination is part of the will itself and it is easy, though by no means compulsory, to specify as executor the same solicitor you commissioned to write your will in the first place. Back

Legislation governing family-related and domestic issues such as divorce and parental responsibility. Back  

Outright ownership of land and any buildings on the land (as opposed to leasehold). Back

A document issued by the courts to enable the named individual(s) to commence distribution of an estate. For example, it would be the signal for the executor of a will to begin collecting in the assets.  Back

A document introduced by the government in a bid to discourage sellers from casually offering their house for sale and subsequently dropping out of chain prior to exchange of contracts. Since April 2009 it has been compulsory for all sellers to assemble a Home Improvement Pack before they can put their house on the market. While it is permissible to create a Home Improvement Pack yourself, virtually everybody will purchase one from a third party supplier, preferably a solicitor.  Back

A tax payable on your estate. It used to be only the very wealthy who were impacted; nowadays, because of high house prices, very many people are realising that a significant portion of what they leave to, say, their children could actually go to the government instead. Indeed, in some cases, the house you've occupied with your child for many years and intend to leave to the child for continued occupation sometimes has to be sold off to pay the tax bill. Husband and wife, or civil partners, automatically transfer their inheritance tax allowance to each other on death, effectively doubling a couple's total allowance and exempting the second partner from paying tax on the first partner's estate, but any other beneficiaries will be find that the residue of the estate over the threshold (£325,000 per person in 2009-2010) will be taxed at 40% before it reaches them. There are several ways in which solicitors can legitimately help you mitigate (ie: reduce) or avoid inheritance tax. Back

A type of life assurance policy used primarily as an investment option - it can also be used to mitigate inheritance tax. Back

A property acquired purely for the purpose of making money by charging somebody else to occupy it  (and, subject to the prevailing market conditions, eventually selling at a profit). Such purchases are sometimes known as "buy-to-let". Back

A hearing in which an individual can challenge a decision made by a public power, such as a government minister or the local council, with a view to having it quashed and possibly obtaining compensation. Back

A document you can draw up to nominate one or more individuals to make important decisions for you later in life should you be incapable of managing your own affairs. It makes it easy, for instance, for someone you know you can trust to sign documents on your behalf and to look after your money for you. Back  

Temporary ownership of land and any buildings on the land up to the end of the lease period, at which point ownership reverts to the lessor (as opposed to freehold). Back

The process by which the "owner" (technically the lessee) of a leasehold property acquires the freehold ownership from the real owner (the lessor), or extends the lease, or changes the lease management arrangements. Back

The process of submitting a dispute to be tested in court after it has proved impossible for the two parties involved to reach a compromise. Both parties are typically assisted and represented in court by a solicitor. Back

A document you can draw up to specify how you wish to be treated in the event of being incapable of making a medical decision for yourself. Back

A favourable clause in an agreement designed to induce the other party to do business. An example might be a conditional right-to-purchase option of a leasehold property. Back

The situation where a seller of land provides for the buyer to make additional payments some time after the sale which are conditional upon future development (full of hidden traps for the unwary). Back

A fund tied to insurance for tax purposes where the premiums are paid by the donor out of income and the policy written in trust for the beneficiary. Back

The administration of somebody's estate after their death. If the distribution of the estate is described in a will, then probate describes the process by which the executor obtains the will and carries out its instructions. Although some institutions, such as banks, will sometimes release funds to the executor before probate has actually been granted (typically when the amount of money involved is small and the will very straightforward), you cannot normally obtain any inheritance until the probate process is complete. Back

Legislation governing all aspects of property, including inter-neighbour and landlord-tenant issues. Back

A family trust into which one partner can place some or all of their estate when they die rather than leave it directly to the surviving partner. There are often inheritance tax reductions to be gained because the contents of the trust aren't technically deemed to be part of the estate. Back

The process of paying off an existing mortgage with funds from a new mortgage, using the same property as security - typically used to switch to a mortgage with more favourable interest rates or other features. Also known as refinancing. Back

A clause in the deeds of a property that imposes some sort of constraint on the present and any subsequent owner(s), such as a prohibition on erecting a fence around the property. Back

The right of a council or housing association tenant to purchase the property in which they live. Back

An investigation at the Land Registry, usually carried out by a solicitor, to confirm that the vendor of a property actually owns it and that there are no other reasons why the purchaser shouldn't become the rightful owner and obtain a mortgage. Traditionally the search fees were paid by the buyer, but the cost has now been transferred to the seller as part of the creation of a Home Information Pack (HIP). Searches are also made in registers maintained by local authorities, water authorities and in mining areas.  Back

The sale of all of the assets and liabilities of a company by transferring its shareholding to the buyer(s), including its entire tax history. Back

The process of documenting snags (ie: quality defects) resulting from building work. Back

A fund set aside for various purposes and managed by appointed trustees. It might, for instance, serve as a legitimate device for reducing inheritance tax liability. Back

A business which is not registered with Companies House and thus has no obligation to supply statutory returns. You can buy or sell part of such a business. Back

A carefully-written legal document that describes your wishes when you die. It typically includes the appointment of an executor and instructions for the distribution of your estate. While dying before you've made a will doesn't necessarily mean your estate will fall into the wrong hands, it can lead to a protracted administration period and considerable inconvenience for your intended beneficiaries. Back

Last modified: November 19, 2009          Regulated by the Solicitors Regulation Authority No.52309    [Privacy Policy]