Beneficiary: A party (person, organization or
charity) entitled to receive a benefit or financial plan such as a
life insurance or annuity under the terms of a Will. Capacity: Sufficient understanding and memory
to comprehend in a general way the situation in which one finds
oneself and the nature, purpose, and consequence of any act or
transaction into which one proposes to enter. Capital Beneficiary: A person who is entitled
to a share of the assets held in a trust. The interest of a
"capital beneficiary" must be distinguished from that of an "income
beneficiary". Capital Gain: Profit realized on the sale of an
asset or the profit deemed to be realized as if the asset had been
sold at the time of the owner's death. Clearance Certificate: A certificate to be
obtained from Canada Customs and Revenue Agency by the personal
representative of a deceased taxpayer before distributing the
assets of the estate. Failure to obtain the certificate can make
the personal representative (i.e. the executor) personally liable
for the deceased's outstanding tax liability. Codicil: A written addition to a Will which may
add new provisions or change provisions in the existing Will. Dependant: A family member such as a spouse,
parent, grandparent, child or grandchild, brother or sister that
the deceased had a legal obligation to provide support for
immediately before their death. Estate: The sum total of a person's assets
including bank accounts, investments, personal property, real
estate etc. Executor (male), Executrix (female): The person
or trust company appointed in a Will to control and protect the
estate's assets, pay off any debts and distribute property as
directed by the Will. The value and complexity of the assets and
the length of time required to administer the estate are important
considerations in choosing an executor or executrix. Executors are
also sometimes referred to as ‘Estate
Trustees’. Fiduciary: A fiduciary is a person (i.e. a
Trustee) required to act for the benefit of another in matters
connected with an undertaking and not for the fiduciary's own
personal benefit. Guardian: A person or trust company who may be
appointed to care for the physical well-being of someone who is
under the age or majority or an individual who is deemed to be
incapable of managing their affairs independently. Holograph Will: A handwritten Will signed by
the deceased which does not require witnesses. Income Beneficiary: A person who is entitled to
share in the income earned on assets held in trust. Inter Vivos Trust: A trust created by a living
person. These trusts can be for a variety of reasons, such as
estate planning, contingency planning, protecting assets, making
charitable donations and protecting beneficiaries who either have
difficulties in managing their cash flow or who have personally
challenging situations. Intestate: Dying without a Will or the person
who dies without having made a Will or testamentary disposition of
his or her property. Issue: Descendants of a person, including not
only children but grandchildren, great-grandchildren and more
remote descendants. Joint Tenancy: A form of co-ownership under
which the interest of a deceased person automatically passes to the
co-owners. Legacy: A gift of personal property transmitted
by a Will. A legatee is the recipient of this gift. Personal Property: All property except for real
estate and buildings; also known as 'personalty' (as opposed to
'real property' or 'realty'). Personal Representative: The individual
administering an estate whether an executor/executrix or
administrator. Power of Attorney - Property: Authorizes an
individual or trust company to be act on another person’s
behalf to manage finances and property if an individual loses the
ability to do this themselves. The ‘attorney’
cannot change any beneficiary designations or make a new Will on
the individual’s behalf. Power of Attorney – Personal Care:
Authorizes an individual to make decisions about
another’s personal or health care. A trust company cannot
act in a personal care capacity. Probate: The official confirmation of the
validity of the Will by the courts, confirming the executor or
executrix's legal authority. Real Property: Includes land and buildings;
also known as 'real estate' or 'realty.' Residue: That portion of an estate remaining
after all debts, taxes and expenses have been paid and all specific
bequests and specific devises have been made. Specific Bequest: A gift under a Will of a
specific item of personal property or a specific cash amount. Specific Devise: A gift under a Will of a
specific item of real property. Surety Bond: Some provinces require an executor
who resides outside the jurisdiction of the court overseeing the
estate to post a foreign executor surety bond to ensure that they
carry out all the duties required of them in good faith. Surety
bonds are also required in other estate situations, such as in the
case of an intestacy. Survivorship: The legal right where a person
becomes the owner of property by reason of having survived the
other person who had an interest in the property. Testator (male), Testatrix (female): The person
who makes the Will. Testamentary Capacity: This is a legal
requirement to the making of a Will and is the ability of a person
to know and understand what it means to make a Will, what the
nature and extent of their property is, and how they would like
their property to be disposed of. Testamentary Trust: A Trust created by a will;
for example, an individual leaves money to a grandchild to be held
in trust until the age of 21. Trustee: This is the person who is appointed to
be the decision maker by the granting party to manage property or
money. Trust: Basically, this is a legal structure
whereby a trustee deals with property or assets, e.g., cash,
stocks, bonds, etc., over which the trustee has control, for the
benefit of persons called beneficiaries. There are two main types
of trusts: inter-vivos (living) trusts and testamentary trusts.
These trusts serve different purposes and objectives and can have
different tax implications. Will: The legal statement of a person's wishes
concerning the disposal of his or her property after death. Some
assets can be passed on without a Will – for example,
jointly-owned assets such as a home plus life insurance proceeds,
and, in some circumstances, registered funds, annuities and
pensions. 
Our Estate and Trust Specialists would be happy to answer any
questions you may have. If you would like to learn more about our
services or arrange a meeting with one of our Specialists, please
contact the TD Waterhouse Private Trust
branch nearest you by consulting our
Private Trust Branch Directory.
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