Certified Specialist in Estates & Trusts Law
Attorney – an agent you name by signing written legal documents called a power of attorney. Two qualified witnesses are required.
Attorney for personal care – a person you designate by signing a power of attorney to make health care decisions when you can’t.
Attorney for property – handles only financial and property decisions as specified in the power of attorney document you sign.
Capital Gains – the difference between fair market value (FMV) and an asset’s purchase cost may result in a capital gain or capital loss. Currently one- half of capital gains are included in income on your final or terminal tax return. Normally, one- half of capital losses can only be applied against taxable capital gains but in the year of death they can be applied against any source of income.
Codicils – legal documents used to revoke or amend your will.
Deemed Disposition – at death you are deemed to have received FMV proceeds for all capital property. It is deemed sold even though your estate gets no actual sale proceeds. A tax liability, however, may arise as a result of the deemed disposition. Capital property includes real estate, stocks, art and investments, but not cash.
Estate – think of it as another word for loved ones. Whatever you leave behind when you die – your assets less liabilities. Estate plans help everything go straight to those you love.
Executor – also called an estate trustee in Ontario. This is your estate’s legal representative, named in your will if you have one, otherwise, by the court.
Getting probate – going through the probate process when someone dies. Estate courts supervise what happens to estates and confirm your executor or estate trustee with letters probate or a certificate of appointment.
Intestate – a dirty word meaning you died without a will. The government then writes a will for you to divide your estate. A court appoints estate trustees, usually from your family.
Marriage contracts – legal agreements you sign before or during marriage to deal with family and estate plan issues. Also called the prenup.
Powers of attorney – you sign legal documents to designate agents for your finances and health care decisions.
Probate – a process that proves who shares and administers your estate. Probate or estate courts have jurisdiction over estates when someone dies with or without wills. Probate or estate administration taxes are legally collected in every province but Quebec.
Probate dispute – if you die without a will, a judge decides who your estate legal representatives are. If your will is contested, it can’t be accepted for probate until a court settles the dispute. Loved ones wait and pay for the delay.
Revoke your will – cancelling your will by your actions in destroying the will or by making a new will.
Tax rollover – a deferral of the tax by avoiding deemed disposition rules. Capital property left for a spouse or a spousal trust is a tax-deferred transfer.
Tax exempt – assets such as insurance; includes a principal residence exempt from tax.
Trusts – are inexpensively created by your will and called testamentary trusts. Trusts control or manage assets for the benefit of trust beneficiaries like minors.
Wills – legal documents you sign to deal with your estate. You appoint executors who manage and distribute your estate to beneficiaries after you die.
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