Legal Jargon
Capital Gains Tax
Tax charged on the increase in value of a capital asset between the date acquired and the date disposed of. Where charged, the applicable rate is the tax payer's usual rate of income tax.
Disabled Beneficiary Trusts
This covers many different type of trust but all have one thing in common, the trust fund is made up of damages for some personal injury. The purpose of placing the assets into trust is for the client hopefully to avoid losing their entitlement to state benefits but the trust may also have beneficial Inheritance Tax Consequences.
Enduring Power of Attorney (EPA)
Prescribed document by which one person (the "Donor") appoints one or more others to act as "Attorney" to administer assets for the benefit of the Donor. Document continues to operate when the Donor subsequently becomes mentally incapable but first must be registered with the Court.
Inheritance Tax
Tax charged on a person's capital upon his or her death according to the value of the person's estate. Where charged, the applicable rate of tax is 40%.
Intestacy
Where a person dies without a Will. His or her estate passes to relatives according to strict statutory rules.
Living Will
Document directing a person's preference with regard to medical treatment.
Partial Intestacy
Where there is a Will but not all parts of it are valid. The provisions of the Will may apply to some assets and the strict statutory rules to others.
Receiver
Person appointed by the Court to administer a mentally incapacitated person's assets for the Benefit of that person (known as the "Patient"), where there is no Enduring Power of Attorney.
Trust
Arrangement whereby assets are transferred from a person to one or more others to hold for one or more specific purposes. The purposes and powers of the persons receiving the assets (known as "Trustees") are usually set out in the trust document.
Will
Legal Document by which an individual leaves assets to named individual/individuals or unnamed class of persons of his or her choice. May also contain funeral wishes, guardianship provisions and trusts.