Glossary
Short definitions of legal terms, auto-linked on first mention across the wiki.
Short definitions of the legal terms used across the InLeef Academy. The first mention of each term on any page is auto-linked here, with a hover definition.
A
- Agricultural Property Relief (APR)
- the equivalent relief for qualifying farm assets.Appears in Understanding Trusts - A Plain-English Guide
B
- Beneficial ownership
- the right to actually enjoy the asset (held by beneficiaries).Appears in Understanding Trusts - A Plain-English Guide
- Beneficiary
- the person or cause who benefits from the trust.Appears in Understanding Trusts - A Plain-English Guide
- Business Property Relief (BPR)
- relief that can pass qualifying business assets free of IHT.Appears in Understanding Trusts - A Plain-English Guide
C
- Capital Gains Tax (CGT)
- tax on the growth in value when an asset is sold.Appears in Understanding Trusts - A Plain-English Guide
- Chargeable lifetime transfer (CLT)
- a lifetime gift into certain trusts that may attract an immediate 20% charge above the allowance.Appears in Understanding Trusts - A Plain-English Guide
I
- Inheritance Tax (IHT)
- tax on wealth passed on during life or at death.Appears in Understanding Trusts - A Plain-English Guide
L
- Legal ownership
- the "on paper" ownership and control (held by trustees).Appears in Understanding Trusts - A Plain-English Guide
- Letter of wishes
- a private, non-binding note guiding the trustees.Appears in Understanding Trusts - A Plain-English Guide
- Life tenant
- the person entitled to benefit now under a life-interest trust.Appears in Understanding Trusts - A Plain-English Guide
N
- Nil-rate band (NRB)
- the tax-free inheritance allowance (£325,000).Appears in Understanding Trusts - A Plain-English Guide
P
- Potentially exempt transfer (PET)
- a lifetime gift that becomes tax-free if you survive seven years.Appears in Understanding Trusts - A Plain-English Guide
R
- Relevant property regime
- the IHT charging system (entry, ten-yearly, exit) for trusts where no one has a fixed entitlement.Appears in Understanding Trusts - A Plain-English Guide
- Remainderman
- the person who receives the capital after the life tenant.Appears in Understanding Trusts - A Plain-English Guide
- Residence nil-rate band (RNRB)
- an extra allowance when a home passes to children or grandchildren.Appears in Understanding Trusts - A Plain-English Guide
S
- Settlor
- the person who creates a trust and puts assets in.Appears in Understanding Trusts - A Plain-English Guide
T
- Trustee
- the person who legally holds and manages the trust assets for the beneficiaries.Appears in Understanding Trusts - A Plain-English Guide
V
- Vesting
- the moment a beneficiary becomes absolutely entitled to the assets.Appears in Understanding Trusts - A Plain-English Guide