Administrator
An administrator (m), administratrix (f), is an individual or institution appointed by the court to administer and settle the estate of a deceased person when:
- There is no Will
- The Will did not name an executor
- The executor died and there is no replacement named in the Will or codicil(s), or
- The executor is unwilling to act and there is no replacement named in the Will or codicil(s)
In Ontario, this person is referred to as an estate trustee without a Will. In Quebec, an administrator is referred to as a liquidator.
Affidavit
A solemn or statutory declaration that a statement of fact is sworn to be true. This will be sworn in front of a notary or a commissioner for taking oaths.
Annuity
A sum of money payable annually or at other regular intervals.
Assets
Possessions owned by a person or an organization.
Attestation Clause
A statement in a Will that stipulates the witness was present when the testator signed the Will. The attestation clause is also referred to as the testimonium clause.
Attorney
Can refer to a lawyer or also to a person who is legally appointed by another person to:
- Transact business on their behalf
- Look after financial affairs (in the case of a continuing Power of Attorney for property)
- Look after medical affairs (in the case of a Power of Attorney for Personal Care)
Beneficiary
A person who is designated to receive:
- A benefit or gift (money or property) under a Will,
- Benefits from a trust
- Proceeds from an insurance policy or investment, or
- Any other heir to an intestacy
Bequest
A gift of a specific item of personal property given within a Will.
Bond of Indemnity
A written instrument obtained through a bank or insurance company that guarantees to protect another party against loss.
Certificate of Appointment of Estate Trustee with a Will
The term used by the Ontario court for the court- granted document (which includes a certified copy of the Will), confirming the appointment of the executor (now called the estate trustee) named in the Will to administer the estate. This document confirms the validity of the Will and is often referred to as Letters Probate, Letters Testamentary and/or Certificate of Probate in provinces outside Ontario.
Certificate of Probate / Letter Probate
The court granted document (which includes a certified copy of the Will), confirming the appointment of the Executor named in the Will to administer the estate. This document confirms the validity of the Will
Certificate of Appointment of Estate Trustee Without a Will
The term used by the Ontario court for the court- granted document appointing an administrator (now called the estate trustee without a Will) to administer and settle the intestate’s estate. This document was previously referred to as Letters of Administration and may be known as such in provinces outside Ontario.
Clearance Certificate (form TX19)
A statement issued by Canada Revenue Agency (CRA) confirming that all of the deceased’s tax liabilities (including previous years) have been paid or that security for payment has been provided. Final estate assets should not be distributed until receipt of the clearance certificate. If an executor or administrator distributes all estate assets prior to or without the receipt of the clearance certificate he or she may be held personally liable for any taxes owing. Although receipt of a clearance certificate does not prevent CRA from future tax reassessment, if further taxes are owed, CRA will pursue payment from the beneficiaries, not the executor or administrator.
Codicil
A legal document executed by a testator, adding, altering, explaining or confirming changes to a Will. The codicil identifies and becomes part of the original Will. It is executed with the same formalities as a Will, however, it does not require that the same people who witnessed the original Will witness the codicil.
Custodian
A person named in a Will to guard, protect, or maintain:
- Guardianship of minor children
- Property or records
The custodian may also be referred to as the guardian. This appointment is not binding by the court.
Death Certificate or Proof of Death Certificate
The Provinces issue Death Certificates, generally through the Vital Statistics office. A Death Certificate will provide, at a minimum the persons full name, date of death, place of death and a registration number. In some Provinces, such as Nova Scotia, you can order a Long Form version that provides information gathered for family history purposes.
If you require a Death Certificate that states the cause of death, you should be requesting either a Medical Death Certificate, Medical Certificate of Death or a Certified Copy of the Registration of Death depending on the province. Because the information in the Medical Death Certificate is covered by the Privacy Act, the applicant must meet certain eligibility requirements. Refer to Contact Directory / Provincial Vital Statistics Offices for more information. The type of death certificate, fee and processing time varies from province to province.
Some additional points regarding Proof of Death should be noted if administering an estate in Ontario:
- The Ontario Rules of Civil Procedure were recently revised such that when applying for a Certificate of Appointment of Estate Trustee with or without a Will, the applicant must now file proof of death with the Court. For this purpose, “proof of death” means documentary evidence of a person’s death, including an official death certificate issued by the province, a certificate of death issued by a funeral director, or an order made under the Declarations of Death Act, 2002 declaring that the person has died.
- It should be noted that, at least in Ontario, some Courts have rejected applications for a Certificate of Appointment of Estate Trustee where the name on the proof of death document does not match exactly with the name appearing on the Will. This is common where the deceased person was commonly known as another name (for example, John Smith commonly known as “Jack Smith”). If this may be an issue, it is suggested that when making the request for the proof of death that the funeral director or the province mirror the name as it appears on the Will.
Devise
A gift under a Will of a specific piece of real estate (real property).
Disbursement(s)
Any money or property paid by the executor from the estate assets.
DOB
Date of birth
DOD
Date of death
Donor (also called “Grantor”)
The person who appoints another person (the donee), as ‘attorney,’ in Powers of Attorney.
DPSP
A deferred profit sharing plan is an employer sponsored retirement plan whereby a company distributes part of its profits to its employees’ for retirement savings.
Enduring Power of Attorney (also called “Continuing Power of Attorney”)
The donee’s authority continues even if the donor becomes mentally infirm.
Estate
The combination of all assets, rights, titles or interests in any property as well as associated liabilities at the time of death. An estate is a legal entity much the same as a corporation is. Your estate continues to exist until all debts are paid and all assets are distributed.
Estate Trustee
A defined term pursuant to the laws of Ontario (Rules of Civil Procedure) and means the executor or administrator of an estate.
Estate Trustee Without a Will
A court-appointed administrator who administers and settles the deceased’s estate when the deceased dies without a Will.
Executor(m) Executrix(f) Executrices (f. pl)
The person or trust company named in a Will to administer and settle a deceased’s estate in accordance with the provisions of the deceased’s last Will and codicil(s), if any. Since January 1995, the executor is technically called the estate trustee, although the terms executor and personal representative are still used in Wills.
Execution Search
An execution search is a search that is done with the Sheriff’s office at the Land Registry to determine whether there are any outstanding writs or judgments against a deceased person’s property. For example, if there was a law suit and the deceased person was found liable to pay an amount to a creditor, that creditor may register a “Writ of Execution” against any property owned by the deceased person to secure payment of their debt. The Writ of Execution would not be removed, and therefore nothing could be done with the property, until the debt is paid and the Writ is discharged.
Family Law Act
The Ontario government’s law that stipulates rights for spouses and dependents during marriage, separation and death.
Firearms Acquisition Certificate (FAC)/Possession and Acquisition Licence (PAL)
The FAC is no longer valid as of September 2, 2015. The PAL is the only licence available to new applicants, and existing holders of FAC must replace it with a PAL. Before taking possession of an inherited firearm, an heir or beneficiary must meet certain criteria specified by the Canadian Firearms Centre (www.rcmp-grc.gc.ca/cfp-pcaf/index-eng.htm).
Grant of Administration
See Administrator.
Grant of Probate
See Certificate of Appointment of Estate Trustee Without a Will.
Guardian
A court appointee legally responsible for the care of minors or adults, property or finances. A guardian of property can be appointed to look after an incapable person’s property or finances. In Quebec, a guardian is referred to as a tutor.
Health Care Directive
A document expressing one’s wishes regarding aspects of critical health and personal care. Also referred to as a living will, advanced care directive, representation agreement, mandate, authorization and personal directive.
Holograph Will
A completely handwritten and signed Will. No witnesses are required. A holograph Will is normally not considered valid in Prince Edward Island. To be valid in Ontario a holograph Will must be dated on or after March 31, 1978 and be entirely handwritten. In some jurisdictions, handwriting includes mouth-writing and toe-writing.
In specie
In kind, in identical form.
Inter Vivos Trust
An inter vivos trust is created during the settlor’s lifetime. Inter vivos trusts are also known as living trusts.
Intestacy
Refers to the condition of an estate of a person who dies without a will.
Intestate Successors
The next of kin who inherit according to the provisions found in the Wills, or the Estates and Succession Act when there is no will.
- The Wills, Estates and Succession Act is the name of BC’s legislation, but each province has legislation providing for the distribution of a person’s estate where they die without a Will. Refer to Folders/Documents/Province for links to each province’s legislation.
IPP
An Individual Pension Plan is a plan that is sponsored by an incorporated business for its owners or executives. It is a defined benefit plan which means the account holder knows the amount they will receive upon retirement.
Jointly and Severally
A legal term used to indicate that two people named to a specific legal role, such as Powers of Attorney or co-executors, have the authority to act jointly with one another or independently of one another. The term means “together and separately.”
Joint Tenancy
A form of joint ownership by two or more individuals whereby the surviving tenant immediately becomes the owner of the asset upon the death of the other joint owner. Therefore, the asset passes outside of the estate and does not have to be probated.
Letter of Indemnity
A guarantee that the executor will fulfill his/her duties and conduct an honest accounting when settling the estate. This letter indemnifies the financial institution against any liability in releasing funds to the executor.
Letters Probate
Refer to Certificate of Probate.
Lifetime Capital Gains Exemption (LCGE)
Lifetime Capital Gains Exemption (LCGE) can be claimed for the sale of qualifying small business shares from the sale of a company, a farm property or a fishing property. The LCGE limit is indexed to inflation every year and in 2021 it was $892,218 which means any income below that threshold that is received from the sale of qualifying business shares, is exempt from capital gains taxation.
Living Will
See Health Care Directive.
Memorandums and Directives
Lists or instructions that a testator may have given regarding the distribution of their personal items after their death. Memorandums may be legally binding if specifically referred to in the Will and incorporated by reference into the Will. Other memorandums are not legally binding, and are simply an “expression of wishes” that the Executor may be morally, but not legally, obliged to follow.
Notice of Assessment
A statement issued by Canada Revenue Agency (CRA) indicating the income tax liability of a particular year and any amount still owing or refundable. If one does not agree with the Notice of Assessment, a Notice of Objection can be filed.
Notorial Certificate True Copy
A certificate prepared by a notary public certifying or verifying that the document the certificate is attached to is a true copy of the original document. The notarial certificate must be attached to the true copy of the document, signed by the notary public and affixed with the notary public’s seal. Many lawyers apply to be appointed as a notary public, but a lawyer is not automatically a notary public.
PAC
A banking acronym for pre-authorized chequing.
Passing of Accounts
A summary report of all accounting activity and justification of executor’s fee.
- This term technically refers to the presentation of formal accounts to the beneficiaries and the Court, which are examined by the Court and either approved or “passed” in the form which they were presented, amended by Court order and passed in the amended form, or not passed because the Court is not satisfied with the accounts or some aspect of the administration of the estate reflected in the accounts. While an Estate Trustee is required by law to maintain estate accounts, there is no blanket requirement for an Estate Trustee to present the accounts to the Court for a formal audit. In many cases, an informal presenting of the accounts to the beneficiaries for approval will be sufficient.
Acronym for portable document format. Most PDF files are opened with Adobe Acrobat Reader. Generally the reader is limited to viewing and printing the document. Few forms can be pre- filled on-screen and then printed.
Per capita
A method of distributing property in a Will when one of the beneficiaries has died. Assume that a father wills his stock portfolio (worth $200,000) jointly to his son and daughter. Assume that the daughter dies before the father, leaving two young children. If the father’s Will stated that his issue (or his descendants; but NOT children) were to receive the property per capita, the son and two grandchildren C & D would each get one-third.
Per stirpes
A method of distributing property in a Will when one of the beneficiaries has died. Assume that a father wills his stock portfolio jointly to his son and daughter. Assume that the daughter dies before the father, leaving two young children. If the father’s Will stated that his issue (descendants) were to receive the property per stirpes, the son would receive one-half of the property, and the grandchildren C & D would share the other half equally (representing the daughter’s portion).
Personal Representative
The executor(s) and administrator(s) of a deceased’s estate.
Personal Property
All property except real estate.
POB
Place of birth
POD
Place of death
Power of Attorney for Property
A legal document in which the donor authorizes an attorney to perform all acts that the donor could do with respect to their property. This includes signing documents on the donor’s behalf but excludes executing a new Will, changing an existing Will, or revoking a current Will. The authority associated with a Power of Attorney ends when the donor dies.
Powers of Attorney for Personal Care
A legal document in which the donor authorizes an attorney to look after the donor’s personal care and medical matters, when the donor is incapable of doing so.
Prearrange/preplan/prefund
Prearranging – or preplanning – a funeral is a process by which a person makes choices and decisions about his or her funeral preferences prior to death. These decisions may involve only a few of the many details, or all of them. The terms are interchangeable and are often used to distinguish from “prefunded” funerals, where a deposit or full payment of a prearranged funeral is made. In many cases, prefunding a funeral through a contract can lock in the cost of funeral products and services, thus helping to protect against inflation.
Probate Bond
See Letter of Indemnity
Probate Registry
This is the process of proving that the Will is the deceased’s last, and confirms the executor(s) named in the Will. The Will is then registered by the court to record that the administration of the deceased’s estate has been granted to the executor(s) named in the Will.
Proof in Common Form
A procedure used in probate court to prove the validity of a deceased’s Will. Generally the executor swears the Will is authentic and files affidavits requesting that probate be granted.
Proof in Solemn Form
A more complex procedure used in probate court to prove the validity of a deceased’s Will when there is, or likely will be, a dispute about the validity of the Will or the disbursements it specifies.
Proof of Death Certificate
Distinct from the provincially issued Death Certificate, the funeral home also provides a document attesting to the death. The title of this certificate varies from province to province and is often called the Funeral Director’s Proof of Death Certificate, Funeral Director’s Declaration of Death or Funeral Director’s Statement of Death. Most funeral homes will provide extra copies at no charge if you require more copies.
Public Guardian and Trustee (PGT)
An individual or organization that falls under the authority of the provincial Department of Justice that may be appointed to manage a minor’s or mentally incapable person’s property when no trustee is appointed in the Will or trust agreement and a court guardian has not otherwise been appointed. The PGT can also be appointed to administer and settle an estate when there is no executor or administrator, or when someone previously given the task has failed to fulfill such responsibilities and no other person is willing to apply to be named a succeeding administrator.
Real Property
Real estate including any interest in land such as a lease, or right-of-way.
Residuary Beneficiary
A beneficiary who receives all or part of the residue of an estate.
Residue
The portion of an estate that is left over after all debts, expenses, specific bequests, devises and legacies have been paid.
Rights or Things Tax Return
Rights or things are amounts that had not been paid to the deceased at the time of his or her death and that, had the person not died, would have been included in his or her income when received. There are rights or things from employment and other sources.
You can file a return for rights or things to report the value of the rights or things at the time of death. However, if you file a return for rights or things, you have to report all rights or things on that return, except those transferred to beneficiaries. You cannot split rights or things between the final return and the return for rights or things.
RPP
A registered pension plan is a form of a trust that provides pension benefits for an employee of a company upon retirement.
RTF
RTF is an acronym for “rich text format” and is a Microsoft-developed coding system. Most word processing software implementations support RTF formats for importing and exporting files; therefore, it is frequently used because it is a “common” format between otherwise incompatible word processing software and operating systems.
Settlor
A person who establishes a trust.
Stub Period
The stub period is the period between when a Testamentary Trust or sole proprietorship/partnership taxation year ended, and the end of the calendar year. T1 returns can be submitted for that period of time for those forms of income.
Succession Law Reform Act
The Ontario government act that addresses issues of estate law, including support of dependants, distribution of assets when a person dies without a Will and the rules about making a Will.
Tax Clearance Certificate
A certificate issued by the Canada Revenue Agency (CRA-formerly Revenue Canada) after all the deceased’s income tax and any other taxes owing have been paid. The Accountant assisting in settling the estate generally requests this document on behalf of the client.
Tenancy in Common
Ownership of an asset by two or more individuals, without the right of survivorship. Therefore, upon the death of one owner, his or her interest does not pass to the surviving owner(s) but passes according to the provisions of his or her Will, or by provincial law if there is no Will.
Testamentary Trust
A trust that arises on and as a consequences of an individual’s death. A testamentary trust includes a person’s estate and any other trusts established according to the provisions set forth in the Will.
A number of changes to the Income Tax Act came into force on January 1, 2016 which have an impact on the taxation of testamentary trusts. For example, subject to some very limited exceptions, all testamentary trusts (including estates) will now be taxed at the top marginal rate of tax on income generated within the trust (as opposed to the trusts previously being taxed at marginal rates). So, while there are still many non-tax reasons to set up multiple testamentary trusts under a person’s Will, many of the tax-driven reasons for doing so no longer apply.
Testator(m), Testatrix(f)
A deceased person with a valid Will.
TOD
Transfer On Death
Transmission Application
A document transferring the title of a piece of real estate property to the executor’s name. It authorizes the executor to deal with the real estate property. Generally, the lawyer assisting in settling the estate files the application with the Land Titles Office.
Trustee
A person or trust company that manages property according to the instructions in the trust agreement or Will and the laws governing trustees.
Valuation
An appraisal of the value of an asset.
Will
A legal document prepared by a person with the intention to take effect upon death. The Will appoints an executor to administer and settle the estate and may stipulate the disbursement of assets, the custody of minor children and funeral arrangements. However, disbursement of assets can be contested, custody is not binding upon the court and the funeral arrangements do not technically have to be followed by the executor. When the Will is presented for probate, any codicils must also be presented.