Make a deceased claim - Glossary

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Administrators (also see legal personal representative)
If a person has died without making a Will, the Next of Kin can apply for a Grant of Representation. Once granted, that person is called an ‘Administrator’. Administrators claim the proceeds of any life and some pension policies, owned by the person who has died, which are not in Trust or under Assignment. Administrators are named on Letters of Administration.

In Scotland, the Administrator is called the ‘Executor Dative’ and the Grant of Representation is called the Confirmation.

Annuity
An Annuity is a regular income, usually purchased at retirement from the proceeds of a pension policy.

Annuitant
The person who receives the regular income from an Annuity is known as the Annuitant.

Assignee
If a policy has been given, or sold, to someone else it will have been done by assigning it (transferring ownership). The person who receives the policy is called an ‘Assignee’. The Assignment could be permanent or temporary and for a particular reason, for example, to repay a mortgage.

Assignment
This is the transfer of rights under a policy. It is most commonly seen when an endowment assurance policy is assigned to a lender to repay a mortgage, where the right to the lump sum benefit from the policy is transferred to the lender.

Beneficiaries
The people entitled to receive the money from the Deceased’s Estate.

Chargeable Event
Sometimes, when the proceeds of certain sorts of policies are paid, a Chargeable Event occurs, meaning that a gain has been made on the policy which needs to be reported to HM Revenue and Customs. We do this by sending them a ‘Chargeable Event Certificate’. We also send a copy to the person that we pay the claim to.

If after taking this payment into account, there is a liability to higher rate tax, the Inspector of Taxes will arrange for the appropriate charge to be made.

Confirmation
A legal document issued by the Sheriff’s Court in Scotland which is the equivalent of a Grant of Representation. Every part of the deceased’s Estate should be written in the inventory attached to this document. There can be an extra page called an Eik, which contains details of any amendments to the inventory.

Coroner
A person who investigates the cause of death of any person who dies in unexplained circumstances or in prison.

Deceased
The person who has died.

Dependant
This is someone who relied on the Deceased for general financial support and other related matters, or whose financial relationship was one of mutual dependence. This may include the Deceased’s wife, husband, registered civil partner or children who are under the age of 18 (or possibly the age of 23 in relation to pension policies), or someone with whom the Deceased resided prior to their death.

Estate
Everything the Deceased owned (except, in most circumstances, anything owned jointly with another person). The Estate includes all bank accounts, insurance policies, unit trusts, individual savings accounts (ISAs), personal equity plans (PEPs), annuities (not Personal Pensions unless we advise you otherwise). When we ask you for the value of the Estate, you need to add together the value of all the assets owned by the Deceased at their death, including their main residence, and the value of any assets and most money given away by them within seven years before the date they died. More information on how to calculate the value of the Estate is available from HM Revenue and Customs – see Useful Contacts.

Executor Dative
This is the term used in Scotland for the Administrator.

Executors (also see Legal Personal Representative)
If a person who has died left a Will, it is probable that they named certain people to look after their affairs after their death. These people are the Executors. If they are still alive when the person dies, they are the first people who can apply for a Grant of Representation. Executors can claim the proceeds of the Deceased’s Estate. Executors will use the assets to carry out the wishes set out in the Will. Executors are named on the Grant of Probate or Confirmation. In Scotland, such an Executor is called the ‘Executor Nominate’.

Grant of Probate
A legal document issued by the Probate Registry of the High Court as proof that a Deceased’s Will is the valid last Will. This document allows an Executor to deal with the Deceased’s Estate.

Grant of Representation
This is a general term used to cover a Grant of Probate, Letters of Administration and Confirmation.

Inheritance Tax
If the value of a Deceased’s Estate is over the Inheritance tax nil rate band, Inheritance Tax may be payable on the amount over that figure. The current Inheritance tax band can be obtained from your local tax office or HMRC – see Useful Contacts. For these purposes you would need to include the value of all the Deceased’s Estate.

Inquest
An inquiry a Coroner holds to decide what caused the death of a person who died in unexplained circumstances.

Intestate
A person dies ‘Intestate’ if they do not leave a valid Will. There are rules, laid down by law, which set out how the Deceased’s Estate must be handled.

Joint Life Policy
A policy where two people have their lives assured. Most pay out when the first of these people dies, but some will only pay out on the death of the second person.

Legal Personal Representative (LPR)
A term used to describe the person, or persons, who are managing the Deceased’s Estate. The LPR could be an Administrator, an Executor or, where no Grant of Representation is being obtained, the Next of Kin.

The LPR has special responsibilities in relation to the Deceased’s pension arrangements, as explained on the ‘Pensions – Responsibilities of the Legal Personal Representative(s)’ page.

Letters of Administration
A legal document issued by the Probate Registry of the High Court, if a Deceased does not leave a valid Will, which names one or more people as the Administrator(s) of the Estate. These are usually people entitled to claim some or all of a Deceased’s Estate.

If there is a Will, but no living executor, Letters of Administration with the Will attached will be issued. In such a case the Administrators must divide the Deceased’s Estate according to the Will. If there is no Will, they will divide it according to the law which applies when someone dies Intestate.

Life Assured
The person upon whose death the Sum Assured will be paid out on a life policy.

Next of Kin
The next of kin is the closest relative of the Deceased. Usually this is the Deceased’s spouse or registered civil partner, but if no such person exists, may be a blood relative. Question 2 in the Questions and Answers section will help you determine who can apply.

Nominated Beneficiary
A person, named by the Policyholder, as someone they would like to receive lump sum benefits from a pension policy following the Policyholder’s death.

Non-Protected Rights (also known as Ordinary Rights)
This is a generic term used for all of the funds under a money purchase pension scheme, such as a personal pension, which are not Protected Rights.

These funds are normally built up from personal and employer contributions, and from transfers between pension schemes. They may not form part of the Deceased’s Estate, and the choice of Beneficiary may be at the discretion of the pension scheme administrator.

Notary Public
An individual who is authorised to swear oaths, certify the execution of deeds and who can authenticate signatures, documents and facts with such authentication being relied upon.

Ordinary Rights (also known as Non-Protected Rights)
This is an alternative name for Non-Protected Rights.

Paid-Up Value
When premiums stop early on certain types of policies, they are regarded as being made 'paid up'. Depending on the type of policy, the death benefit will either be reduced in line with the premiums actually paid, or will be maintained or reduced and paid for out of the value of units held. In this case, once the units have all been used to pay for the cost of life cover and any other charges, the policy will lapse without any value.

Policyholder
This is usually the person who originally took out the policy.

Probate Registry of the High Court
The office in England and Wales responsible for issuing the Grant of Representation.

Proposer
This is the person who originally took the policy out. For pension policies, the Proposer will usually be the Policyholder.

Protected Rights
Payments made into a pension scheme by the Department of Work and Pensions (DWP) (formerly the Department of Social Security). These consist of a rebate of part of the national insurance contributions made by a scheme member and their employer, plus a small tax refund. The Protected Rights may also have been transferred in from another pension arrangement.

Protected Rights may form part of the Deceased’s Estate depending on their circumstances at the time of death. Regulations issued by the DWP and HM Revenue and Customs tell us how these funds must be used.

Sealed Copy
A ‘sealed copy’ is an extra copy of a Grant of Probate, Letters of Administration and Confirmation that you can obtain from the Probate Registry of the High Court or the Sheriff’s court (in Scotland), which is endorsed with an original stamped seal by the court official.

Sheriff's Court
The office in Scotland responsible for issuing Confirmation, the type of Grant of Representation issued in Scotland.

Sum Assured
This is the basic guaranteed benefit we pay from an assurance policy when the Life Assured dies, provided all premiums due have been paid.

Trust
A Trust is a way of arranging for an asset to benefit other people without giving them full control over it. This may be done for reasons of convenience, for example where the Beneficiaries are to be minor children, for Inheritance Tax planning purposes or for reasons of protection, or if the Beneficiary is to be someone who is mentally incapable.

Trust Deed
The Trust Deed is a legal document that creates the Trust and transfers the legal ownership of the policy to the Trustees to hold subject to the terms of the Trust.

Trustees
The appointed Trustees are the people who hold legal ownership of the Trust property, but cannot use it as their own personal property. The Trustees must use the Trust property for the benefit of the Beneficiaries. The Trustees will be the legal owners and will be the people entitled to make the claim under the policy. The Trustees have the duty to make sure that the proceeds are paid to the named Beneficiaries, or are managed on their behalf.

Will
A legal document that allows an individual to specify how their assets are to be handled following their death, and naming the person, or persons, responsible for carrying out those wishes.

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