Glossary

Canadian estate-planning terms, in plain language.

We try to use plain language across the site, but some terms (LCGE, QSBC, codicil, EAT) genuinely don't have plain-English equivalents. This glossary defines the ones you'll see most often.

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A

ACB

Adjusted Cost Base. Your cost for tax purposes in a property or investment — usually purchase price plus capitalised improvements and certain fees. Capital gains are calculated against this number, not against the market price.

Administrator

The person appointed by the court to settle an estate when there is no will (or the named executor can't serve). Sometimes called the "estate trustee without a will" in Ontario.

Affidavit

A sworn written statement, signed in front of a commissioner or notary. Used in estate work for proof of death, identity, and authority — especially in our no-PIN executor unlock path.

Annuity

A contract that pays out a stream of payments over time. Most commonly used for retirement income. Tax treatment depends on whether it's prescribed or non-prescribed and whether you bought it personally or it's coming from an RRSP/RRIF.

Attorney (POA)

A person appointed under a Power of Attorney to act on your behalf. Different from a lawyer; an attorney for property handles finances, an attorney for personal care handles healthcare.

B

Beneficiary

Anyone who receives something from your estate or a registered plan. Beneficiaries named directly on RRSPs, TFSAs, and insurance policies receive their gift outside of probate — faster and tax-advantaged.

Beneficiary designation

The named recipient on a registered plan (RRSP, RRIF, TFSA, RDSP) or insurance policy. Crucial — a missing designation routes the proceeds through your estate, into probate, and potentially exposes them to creditors and Estate Administration Tax.

Bequest

A specific gift made in a will. Can be specific ("my watch"), general ("$10,000"), or residual ("the rest").

C

Capital gains exemption

See LCGE — Lifetime Capital Gains Exemption.

Capital property

Most non-inventory assets you own — investments, real estate, business shares. Sale (or deemed disposition at death) can trigger capital gains tax.

Certificate of Appointment

Ontario's name for the document a court issues to confirm an executor's authority. Equivalent to Grant of Probate elsewhere. Required by banks and land registries before they'll act on the executor's instructions.

Codicil

A formal amendment to a will. Used for small changes (an updated executor, a new bequest). For bigger changes, lawyers usually recommend a fresh will rather than a codicil.

Common-law partner

An unmarried partner you've lived with in a conjugal relationship for the period set by your province (typically 1–3 years). Common-law partners have different rights in different provinces — confirm with your lawyer.

Crystallization (of LCGE)

A planning move where you trigger a capital gain on your QSBC shares (often via an internal sale or share exchange) to use the LCGE while you're alive — locking in the tax shelter before any future limit change.

D

Deceased

The person who has died. In our flows, we use this term once a death certificate has been verified.

Deemed disposition

A tax fiction. On death, the CRA treats you as having sold every capital asset at fair market value — even if your heirs are receiving them, not selling. This is the trigger for most death-related capital-gains tax.

Designee

Anyone we know about who has a role in your estate — executor, alternate executor, POA, next-of-kin. Designees receive notifications during the executor unlock cooling-off period.

Donor advised fund (DAF)

A charitable giving account at a public foundation. You contribute, get a tax receipt, and direct grants to charities over time. Useful in estate planning to handle a large charitable bequest without naming dozens of charities in the will itself.

E

Estate

Everything you own (and owe) at the moment of death. Your executor's job is to settle this — collect assets, pay debts and taxes, distribute the rest.

Estate Administration Tax (EAT)

Ontario's probate fee — currently 1.5% of estate value over $50,000 (no max). A primary reason Ontario residents use secondary wills for private-company shares.

Estate freeze

A tax-planning move where you lock in the value of an appreciating asset (typically corporate shares) to yourself and let future growth accrue to your children or a family trust. Reduces your eventual deemed-disposition tax bill.

Executor

The person you name in your will to settle your estate. Called "estate trustee with a will" in Ontario. Owes a fiduciary duty to beneficiaries — must act in their interest, not their own.

Executor compensation

What executors are entitled to charge for their time. Provincial guidelines vary; Ontario is usually 2.5% of receipts + 2.5% of disbursements. Many family executors waive it; corporate trustees don't.

F

Family Law Act (FLA) election

An Ontario law option for surviving spouses to claim half the family-property growth instead of taking what the will gives them. Affects estate planning significantly when the marriage is short or assets are uneven.

Family trust

A trust set up to hold assets for a family, often used with an estate freeze. Income and capital can be sprinkled among beneficiaries for tax efficiency. 21-year deemed-disposition rules apply.

Fiduciary duty

The legal obligation of an executor (or trustee, or POA) to act in the best interests of the estate or beneficiaries — not in their own interest. Breach can result in personal liability.

FutureVault

A SOC 2 Type II–audited Canadian custody platform we use to encrypt and store sensitive items (private keys, account numbers, PINs, document blobs). Sits behind a separate encryption boundary from our main database.

G

Grant of Probate

The court document that confirms an executor's authority to act on a will. Banks, brokers, and land registries usually require it before transferring assets. Called Certificate of Appointment in Ontario.

H

Holographic will

A will written entirely in your own handwriting and signed by you, without witnesses. Valid in most provinces but easy to challenge and limited in scope. Lawyers usually recommend a proper attested will instead.

I

Inheritance tax

Canada doesn't have one. The tax that hits at death is on capital gains (deemed disposition) and RRSP/RRIF collapse, paid by your estate before distribution. Some US states still have inheritance tax.

Inter vivos trust

A trust created while you're alive ("inter vivos" = "between the living"). Contrasted with a testamentary trust, which is created by your will after death.

Intestate

Dying without a valid will. Provincial succession laws decide who inherits — usually spouse first, then children, then more distant relatives. Often suboptimal compared to a thoughtful will.

J

Joint tenancy

A form of property ownership where surviving owners automatically take the deceased's share — bypassing probate. Useful for the matrimonial home; risky for parent-child arrangements due to capital-gains and FLA implications.

L

LCGE

Lifetime Capital Gains Exemption. For 2026, sheltering up to $1.25M of capital gains on Qualified Small Business Corporation (QSBC) shares or qualified farm/fishing property. One of the most valuable tax shelters in Canada — and easy to miss without planning.

Letters of Probate

Older name for Grant of Probate / Certificate of Appointment. Different provinces use different terminology.

Living will

A document expressing your wishes about end-of-life medical care. Sometimes called an advance directive. In Ontario it's typically combined with a Power of Attorney for Personal Care.

M

Marginal tax rate

The tax rate on your next dollar of income. In Canada, the top combined federal-provincial marginal rate ranges from ~44.5% (Nunavut) to ~54.8% (Newfoundland) for 2026 income brackets. RRSP/RRIF collapse on death usually pushes the deceased into the top bracket regardless of their lifetime norm.

N

Notarized affidavit

An affidavit signed in front of a notary public. Required for our no-PIN executor unlock path.

Notary

In Canada outside Quebec, a notary public is usually a lawyer authorised to administer oaths. In Quebec, notaries are full legal professionals who can draft wills. Civil-law tradition.

P

Per stirpes

Latin for "by the branch". A gift "to my children per stirpes" means if a child predeceases you, that child's share goes to their children. Contrast with per capita.

PIPEDA

Personal Information Protection and Electronic Documents Act — Canada's federal private-sector privacy law. Governs how we collect, use, and disclose your personal information. Provincial laws (Quebec's Law 25, BC's PIPA, Alberta's PIPA) sometimes apply instead.

POA — Power of Attorney for Personal Care

Ontario term for the document naming someone to make healthcare decisions for you if you're incapable. Other provinces use "healthcare directive" or "representation agreement".

POA — Power of Attorney for Property

A document naming someone to handle your finances if you're incapable. Critical companion document to a will. Doesn't survive death — the executor takes over then.

Predecease

To die before another named person. Wills usually include predecease clauses to handle the case where a beneficiary or executor dies before the testator.

Principal residence

Your main home — subject to the Principal Residence Exemption (PRE), which lets you sell or transfer it tax-free. Only one PRE per family unit per year, so a couple with two properties has to choose.

Probate

The court process of validating a will and confirming the executor's authority. Most provinces charge a fee scaled to estate value. Ontario charges 1.5% over $50k; BC charges 1.4% over $50k; Alberta and Quebec charge nominal flat fees.

PRE — Principal Residence Exemption

A federal tax exemption that lets you (and your estate) sell your principal residence without paying capital gains. Only one PRE per family per year, so timing matters when there are multiple homes.

Q

QSBC shares

Qualified Small Business Corporation shares — the technical class that qualifies for the LCGE. Requires the corp to be a CCPC, with 50%+ active business in Canada at the test date (90%+ for the 24 months prior). Easy to mess up without planning.

R

RDSP

Registered Disability Savings Plan. Tax-deferred plan for people with disabilities, with significant federal grants and bonds. Doesn't collapse on death the same way an RRSP does, but rollover rules apply.

Registered plan

Any of RRSP, RRIF, TFSA, RDSP, RESP — accounts with tax-deferred or tax-free growth status, governed by federal rules. Each has its own beneficiary-designation rules.

Residue

What's left of your estate after specific bequests are made, debts are paid, and taxes settled. The residual beneficiaries take the residue — usually the bulk of the inheritance.

RESP

Registered Education Savings Plan. Tax-deferred account for a beneficiary's post-secondary education. Has grants (CESG) and limits. On the subscriber's death, beneficiary designation matters.

RRIF

Registered Retirement Income Fund. The mandatory "payout" version of an RRSP that kicks in by the year you turn 72. Same rollover rules to a spouse on death.

RRSP

Registered Retirement Savings Plan. Tax-deferred savings vehicle. On death, the full plan value is generally added to the deceased's terminal-year income — UNLESS a spouse (or financially-dependent child) is the named beneficiary, in which case it rolls over tax-deferred.

S

Secondary will

A second, separate will dealing only with private-company shares (and certain other assets that don't need probate). Used in Ontario to keep those assets out of probate, avoiding the 1.5% EAT. Drafted alongside the primary will.

Spousal trust

A trust set up in a will where the surviving spouse is the sole beneficiary during their lifetime. The capital then passes to the named remainder beneficiaries (often children). Allows rollover of capital gains on death.

Succession Law Reform Act

Ontario's main statute governing wills and intestate succession. Different provinces have their own (BC's WESA, Alberta's WSA, etc.) — most share the same broad structure with provincial twists.

T

TFSA

Tax-Free Savings Account. Contributions are after-tax; growth and withdrawals are tax-free. On death, you can name your spouse as "successor holder" (the account becomes theirs) or anyone as beneficiary.

Testamentary trust

A trust created by your will, taking effect at death. Common uses: holding assets for minor children, providing for a disabled beneficiary, or splitting income across multiple beneficiaries.

Testator

The person whose will it is. Female form: testatrix (rarely used today).

Trustee

The person or institution that holds and manages property in a trust for the beneficiaries. Owes a fiduciary duty. Often the same person as the executor when the trust is testamentary.

W

Witness (to a will)

Two adults who sign the will to attest they saw the testator sign it. Witnesses can't be beneficiaries (or their spouse) — doing so usually voids their inheritance, though the will itself stays valid. Holographic wills don't need witnesses.

Missing a term?

Email hello@lasttreasuremap.com and we'll add it. We're building this for ourselves as much as for you.