Old lord, say, in story (5)
I believe the answer is:
liege
'old lord' is the definition.
(I've seen this before)
'say in story' is the wordplay.
'say' becomes 'eg'.
'in' indicates putting letters inside.
'story' becomes 'lie' (story can mean a fabrication).
'eg' placed inside 'lie' is 'LIEGE'.
(Other definitions for liege that I've seen before include "Belgian city or feudal superior" , "Belgian city or feudal chief" , "Loyal subject" , "European province" , "Vassal; city in Belgium" .)