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Jargon Buster

Eighteen to Twenty Five Trust

A trust created in accordance with FA 2006 (see also Young Persons’ Trust) for young beneficiaries who must receive their entitlement under the will by no later than age 25.

Employee Benefit Trust

A trust created either by a company or the shareholders of that company in favour of its employees, former employees and their families/dependents.


The assets belonging to someone who has died, which now need to be administered by the personal representatives.

Estate administration

The act of administering the deceased’s estate, collecting in his/her assets, paying all debts, paying any legacies or bequests, before distributing the residue.

Executor (Executrix: female)

The person appointed in a deceased person’s will to administer his/her estate.

Early Retirement

A member takes benefits from a scheme earlier than the normal retirement (or pension) date under the scheme. Generally, this can only take place after age 50 (55, from April 2010). HMRC refers to this as Normal Minimum Pension Age.

Employer Financed Retirement Benefit Scheme

A scheme providing benefits for employees or former employees. It is not a Registered Pension Scheme.


Early retirement factor


Employer contracted out number


Employer Financed Retirement Benefit Scheme


Equivalent Pension Benefits


Executive Pension Plan

Expression of wishes

Often also referred to as a death benefit nomination, it is the means by which members express the preferred (but not binding) destination of any lump sum benefits payable on death. The ultimate decision on payment is a matter for the trustees.

Enhanced Protection

One of the forms of protection for members from the Lifetime Allowance Charge under FA04 allowing members, regardless of the amount of their pre-A Day benefits. Strict conditions apply to it.


What constitutes benefit?

In the case of Chapman vs Chapman [1954] the court found that it had no inherent jurisdiction to approve a variation of trusts for minor, unborn or unascertained beneficiaries just on the ground that the variation was for their benefit. The position was changed by the Variation of Trusts Act 1958 (the 1958 Act).

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