When you're dealing with wills, estates, enduring powers of attorney or other important financial and legal matters, you may come across terms that are unfamiliar or difficult to understand.

We've created this glossary to help explain commonly used terms in plain language, making it easier to understand.

Assets are the things you own, such as money, property, investments, vehicles and personal belongings. These assets form part of your estate.

An attorney is the person or organisation you appoint in an enduring power of attorney (EPA) to make decisions on your behalf.

A beneficiary is a person, charity, organisation or trust that will benefit from an estate or trust, either through the will or if there is no will, under the Administration Act 1969.

A bequest is a gift you leave to a person, charity or organisation in your will. It can be money, property or a treasured item, allowing you to continue supporting the people and causes that matter to you after you're gone.

The deceased is the person who has died.

A distribution is a payment made or an asset transferred to a beneficiary from an estate or trust.

A donor is the person who creates an enduring power of attorney (EPA) and gives someone else the authority to make decisions on their behalf.

Dying intestate means a person dies without a valid will. When this happens, their estate is distributed according to New Zealand law rather than their personal wishes. Having a will can give you confidence you’ve made your wishes clear to friends and family. 

Public Trust and other trustee corporations can elect to administer an estate rather than obtaining probate or letters of administration when the assets in the estate do not exceed $120,000. This may help simplify and speed up the process of obtaining probate (authority to manage the estate).

An enduring power of attorney (EPA) is a legal document allowing you to choose someone you trust to make decisions on your behalf if you are no longer able to make them yourself. There are two types of EPA: one for your property and finances, and one for your personal care and welfare.

An enduring power of attorney (EPA) for personal care and welfare is a legal document allowing you to appoint someone you trust to make decisions about your health, living arrangements and day-to-day care if you are no longer able to make those decisions yourself. It only comes into effect if you lose mental capacity.

An enduring power of attorney (EPA) for property and finance is a legal document allowing you to appoint someone you trust to manage your money, property and financial affairs on your behalf. You can choose whether it takes effect straight away or only if you are no longer able to make these decisions yourself.

An estate is made up of everything a person owns in their own name when they die. Any jointly owned assets do not ordinarily form part of a person’s estate, as this usually passes to the surviving owner automatically.

Estate administration is the process of managing and settling a person's affairs after they die. This includes gathering their assets, paying any debts and expenses, carrying out the instructions in their will (if they have one) and distributing their estate to the people entitled to receive it.

An executor is the person or organisation you choose to carry out your wishes in your will. They are responsible for obtaining the legal authority from the court to manage your estate, paying any debts and expenses, and distributing your assets to the people or organisations you have chosen to benefit. 

Funeral wishes are instructions or preferences you record about your funeral and what you would like to happen after you die.

Letters of administration is a legal document issued by the High Court giving someone the authority to administer and settle a person's estate when there is no valid will, or when the named executor is unable or unwilling to act in this role.

Liabilities are debts that you owe to other people or organisations, such as loans, credit card balances unpaid bills. When someone dies, liabilities must be paid from their estate before assets can be distributed to beneficiaries.

A life interest is when you give someone named in your will the right to use and/or generate income from something – usually a property or investment for their lifetime.

Mental capacity is a person's ability to understand information, make decisions and communicate their wishes. When making a will or an enduring power of attorney (EPA), a person must be able to understand the decisions they are making and the likely effect those decisions will have.

Next of kin is a person's closest living relative, such as a spouse, partner, child, parent or sibling. A next of kin may be involved in important decisions after someone dies or becomes unable to manage their own affairs. Being next of kin does not automatically give someone legal authority to make decisions on another person's behalf.

Personal Assist is a service Public Trust can offer when appointed your attorney under an enduring power of attorney (EPA) that helps you to manage your financial and property affairs if you need support now or in the future.

Probate is a legal document issued by the High Court that confirms a will is valid and gives the executor authority to manage and settle the person’s estate.

A property manager is a person or organisation appointed by the court to look after the financial and property affairs of someone who can no longer manage them on their own.

The Protection of Personal and Property Rights Act 1988 (PPPR Act) is the New Zealand law that governs the powers of enduring powers of attorney (EPAs) and sets out how decisions can be made for people who are unable to manage their own affairs. It also provides a process for the court to appoint a property manager or welfare guardian if someone loses capacity and has not made an EPA.

A residual estate is the balance of what remains of a person's estate after all debts, expenses, taxes and any specific and other gifts in the will have been paid or distributed. This remaining balance is then shared among the people or organisations named in the will to receive the residue of the estate.

A statement of wishes is a non-legally binding document that sits alongside your will and provides extra guidance about your preferences and intentions.

A testamentary guardian is a person you name in your will to help look after your child's welfare if you die before they turn 18. They can help make important decisions about the child's upbringing, education, health and wellbeing, helping ensure someone you trust has a role in guiding their future. They are not necessarily the person who has day-to-day care.

A trust is a legal arrangement where assets, such as a home, money or investments, are held and managed by a trustee for the benefit of other people, known as beneficiaries. These assets are no longer owned by the customer and are instead owned by the trust. Trusts can help protect and manage assets, and provide for the people and causes that are important to you now and in the future.

A trustee is a person or organisation responsible for managing money, property or other assets on behalf of someone else either under a trust or estate. They have a duty to act in the best interests of the beneficiaries and follow the terms of the trust or will when making decisions. 

A welfare guardian is a person appointed by the Family Court to make decisions about someone's personal care and wellbeing when they are no longer able to make those decisions themselves. Their role may include making decisions about healthcare, living arrangements and day-to-day welfare, always acting in the person's best interests.