Agent for Executor
An individual or company that is appointed by a named executor to carry out all or selected parts of the deceased person’s estate administrative tasks. It relieves the executor of the burden of administration while retaining the decision-making ability.
Alter Ego Trust
Allows an individual to transfer property into a trust without triggering the payment of capital gains tax. Upon the death of the settlor there is a deemed disposition of the assets and capital gains tax may be payable unless other exemptions are available. In order to qualify for capital gain exemption, certain requirements must be met. For example, the settlor must be entitled to all the income generated by the trust during his or her lifetime.
Anything owned by a person.
a) A person named in a will to receive all or part of an estate; or
b) A person having a beneficial interest in a trust created by a will.
A gift of personal or household belongings to a person named in a will.
A gain resulting from the disposition or deemed disposition of capital assets (for example real estate, shares, or personal property).
An amendment which is annexed to a will.
The person appointed by the court to handle the affairs of the person who has died.
The property of a deceased person.
Person(s) or company named in a will to administer the estate of a deceased person.
Grant of Probate
An order of the court that provides the executor the authority to administer a deceased person’s estate under a will.
Also known as a living trust, this trust has a duration that is deemed at the trust’s creation and can entail the distribution of assets to the beneficiary during or after the trustor’s lifetime. The opposite of an inter-vivos trust is a testamentary trust, which goes into effect upon the death of the trustor.
When a person dies without leaving a valid will.
Joint Partner Trust
Similar to the Alter Ego Trust in that no capital gains tax will be payable as long as the the trust is properly structured. In this situation the deemed disposition (and any resulting taxes) will be on the death of the last to pass. The funds in the trust can only be disbursed to the settlors during their lifetimes.
Gifts of cash or assets to beneficiaries named in a will.
Letters of Administration
A document issued by a court appointing an administrator(s) of an estate. It is issued when a person dies intestate (without a will).
A document issued by a court confirming the authority of the executor named in a will. It also certifies that the will is the Last Will and Testament of a deceased person.
Also known as debt, an amount owed to creditors of a deceased person.
Non Registered Investments
Non-tax sheltered investments such as investments held outside an RRSP, RRIF or TFSA. The earnings from these investments are generally recognized as income in the year they are earned and taxed accordingly.
Notice of Assessment
A form sent to taxpayers after their income tax returns are processed, informing them of the status of the return including any refunds, tax owing or corrections on their income tax returns.
Power of Attorney
A written authorization to represent or act on another’s behalf.
The formal process of proving the will and confirming the authority of the executor(s) named in the will.
Proof of Death
An original, notarized or certified true copy of a death or burial certificate, act of death, certificate of death or another evidence of death.
Beneficiary(ies) to whom the residue of the estate is left.
Registered Retirement Income Fund (RRIF)
A plan registered with CRA that permits accumulated registered retirement savings to be paid out over time to provide an individual with income during retirement. Principal and earnings generated within the plan remain tax-sheltered until they are withdrawn as income after the age of 71. RRIF’s end by the annuitant’s age of 100.
Registered Savings Plan (RRSP)
A plan registered with the CRA that allows an individual to accumulate savings for retirement on a tax-sheltered basis until withdrawn or converted to a RRIF.
Tax Clearance Certificate
A certificate issued by the CRA confirming that a person’s tax affairs are in order at the date of issuance. This includes all previously filed personal and estate filings.
Tax-Free Savings Account (TFSA)
A registered account that allows a person to accumulate tax-free investment income. Income and capital gains earned are not taxed even when withdrawn.
Terminal Income Tax Return
The income tax return filed by an executor including income from January 1 to the date of death plus any realized or deemed realized taxable capital gains and allowable capital losses at the time of death.
A testamentary trust is a trust established under the will and can be used for holding funds for a minor beneficary, or an individual that may not be capable of handling their own funds. Also the will maker (testator) may not wish to pay out all the funds from his or her estate until a set period after their death.
An individual making a will.
A trust is a legal document created to allow one party to manage the assets for a second party.
An individual, individuals or trust company that is/are managing a trust.
A legal written document conforming to provincial rules that states what the will-maker’s wishes are with respect to his or her assets upon death.
A person over the age of 16 who creates a legal will.