COP1

The form of application to be a deputy – who can make decisions on behalf of someone who lacks mental capacity.

Capital gains tax

A tax on the profit when you sell or dispose of an asset that has increased in value.

Chargeable estate

The amount of your estate on which inheritance tax is payable, calculated after liabilities, exemptions and reliefs and the nil-rate band have been deducted.

Civil partnership

A legally recognised relationship between two people, which is distinct from marriage but carries the same rights in respect of inheritance, property etc. As from 31st December 2019, civil partnerships can legally exist both between between people of the same sex and people of opposite sexes.

Codicil

A formal document by which changes can be made to a will. It must be signed and witnessed in the same way as a will, and it is then regarded as part of the will.

Constructive trust

A structure resembling a trust (an implied trust) that arises where it would be unreasonable for the individual who holds an asset to deny another individual their beneficial interest in the asset. They can arise with mutual wills.

Contingent legacy

A gift in the will that is expressed as taking effect ‘if and when the child attains 18’. The gift only takes effect if the child reaches the age of 18.

Court of Protection

A court that makes decisions on property, financial affairs and welfare matters for people who lack mental capacity to make decisions for themselves.

Co-ownership

Where two or more people have interests in the same property. Co-ownership can subsist as a joint tenancy or a tenancy in common.

Creditor

A person or company who is owed money.