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Definitions of Terms

Ademption

where a specific gift of property made to someone under their will fails because the property is no longer owned by the will-maker at the time of their death.

Administrator

the person who is appointed by the Court to manage the deceased estate of a person who passed away without a valid will.

Advanced Health Care Directive

a written document which records your values, beliefs and wishes in relation to the healthcare treatments you would like to receive or refuse in the event that you are seriously ill and unable to make those decisions for yourself. These are usually drafted with your doctor or treating specialist.

Affidavit

a written statement that is sworn to be true by the person who signs it.

Asset

something that is owned by the deceased person such as land, a bank account or a motor vehicle.

Attorney

the person appointed to make legal, financial and property related decisions on your behalf under a Power of Attorney document.

Beneficiary

the person or group of people who benefit from the will or estate of a deceased person.

Bequeath

to leave a gift of personal property to someone in a will.

Binding Death Benefit Nomination

a written direction to the trustee of your superannuation fund that nominates the person or persons who you wish to receive your superannuation death benefit once you have passed away.

Codicil

a written document that modifies, changes or revokes parts of an earlier will.

De Facto Relationship

a relationship between two people as a couple who were living together, but who were not married to one another.

Deed of Family Arrangement

a written agreement to record the distribution of a deceased estate where the distribution is not made in accordance with the will of the deceased person, usually where the beneficiaries wish to rearrange the distribution of the estate between themselves or to settle a claim against the estate outside of the Court.

Dependant

someone who depends on someone else for financial support. For superannuation purposes, this can be a spouse or a child.

Enduring Guardianship

a written document which gives another person the authority to make medical and lifestyle decisions on your behalf.

Enduring Guardian

the person appointed to make health, lifestyle and medical decisions on your behalf when you are no longer capable of making these decisions for yourself.

Estate

all the property owned by a person at the time of their death.

Executor

a person (or people) appointed by the will of a deceased person to administer the estate in accordance with the wishes of the will.

Family Provision Claim

an application to the Supreme Court of New South Wales by a person who has been left out of a will seeking provision from the estate of the deceased person, i.e. the application to challenge the will of a deceased person.

Grant

a formal document issued by the Supreme Court of New South Wales which gives the Executor or Administrator the authority to deal with the assets of the estate.

Guardian of Minors

the person or people appointed in your will to look after the interests of your minor children after you have passed away.

Heir

a person who is legally entitled to the property of a deceased person, more commonly known as a beneficiary.

Intestacy

when someone passes away without a valid will, they have died “intestate” and the assets of their estate will be divided amongst their relatives in accordance with the law.

Joint Tenants

a form of property ownership between two or more people who share equal ownership and equal rights to the property.

Kin

a person’s family and relations are that person’s next of kin.

Legacy

a gift of personal property or money given to a beneficiary in a will.

Letters of Administration

when a person passes away without a will this is the formal grant from the Supreme Court of New South Wales giving the administrator the authority to deal with the estate assets.

Liability

the debts that a deceased person owes at the time of their death.

Life Estate

the ownership of land for the duration of a person’s life, which may pass back to the original owner or another person upon their death.

Maintenance

early distribution of the estate for a person’s maintenance to a beneficiary who was wholly dependent upon the deceased person and is entitled to all or part of the estate.

Mediation

an informal process for helping people who have a dispute to resolve the dispute without going to Court.

Minor

a child who has not yet reached the legal age of 18 years.

Notice of Death

the document required to transfer property owned as joint tenants into the sole name of the surviving owner.

Offer of Compromise

a written offer made from one party to another party stating the terms on which they would be prepared to settle the dispute between them without going to Court.

Personal Property

the property of a deceased person except for land.

Per Stirpes

describes the process of distributing the estate of a deceased person equally between the children of the beneficiary who was entitled to a share of the estate. For example, where a parent is the beneficiary of a will but passes away, their share of the estate will go to their children instead.

Power of Attorney

a written document which gives another person the authority to make legal, financial and property related decisions on your behalf.

Probate

when someone passes away with a will this is the formal grant from the Supreme Court of New South Wales giving the executor the authority to deal with the estate assets.

Qualified Witness

the persons who are authorised to witness a person sign a Power of Attorney or Enduring Guardian, being a lawyer, a registrar of the local court or an employee of the NSW Trustee and Guardian.

Real Property

land that is owned by the deceased person.

Renouncing Probate

where an executor appointed by a person’s will does not wish to accept their appointment as the executor.

Residue

the balance of the estate assets after all of the debts, taxes, funeral expenses and specific gifts have been paid.

Succession Act

the Succession Act 2006 (NSW) is one of the key pieces of law which governs the area of Wills and Estates.

Tenants in Common

this is property ownership between two or more people who share equal or unequal ownership to the property. Each person usually owns their share independently of the others. Therefore, should one owner die, then their share in the property is forms part of their estate.

Testamentary Trust

a type of trust that you can create in your will for certain beneficiaries of your estate which will not come into effect until after you have passed away.

Testator

a person who makes a will.

Trustee

the person who holds property for the benefit of the beneficiaries.

Undue Influence

where a will can be deemed invalid because the will maker was coerced or influenced by another person to include something in their will that is against their true wishes.

Valid Will

a will voluntarily made by a person who is over the age of 18 years, which has been signed and dated by the will maker in the presence of two witnesses.

Will

a legal document used to record your wishes in relation to who receives your assets after you pass away.

Witness

the person who watches the will maker sign their will and then also signs the will to verify the authenticity of the signature.

Zero Control

which is what you will have if you do not prepare your Will, Power of Attorney or Enduring Guardian in accordance with your wishes whilst you are still alive and have the mental capacity to do so.

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