Administrator: A court-appointed individual who administers the estate in scenarios where there is no will, an executor was not named in the will or all named executors have died or are unwilling/ unable to act.

Alter ego trust: A trust created after 1999 by an individual who is at least 65 years old, for the individual's exclusive benefit. Until the individual's death, no other person may receive or otherwise obtain the use of trust income or capital. To read about alter ego trusts and their tax consequences, please click here.

Beneficiary: A person (or organization or charity) who receives a benefit (such as a life insurance policy or annuity) or gift under a will.

Capital gain: Profit realized when an asset (such as stocks, bonds or real estate) is sold or otherwise disposed of. Such a gain will often result in tax consequences. Currently, 50% of the capital gain is taxable.

Codicil: A properly witnessed, written change or addition to a will, usually used for relatively minor revisions.

Discretionary trust: A type of trust where the trustee can control the allocation of income and capital to beneficiaries.

Estate: The sum total of an individual's assets. Can include items such as monies, personal property, business interests, receivables, etc.

Estate planning: The process of arranging the efficient transfer of an individual's assets at the time of his death to his chosen beneficiaries.

Executor/Executrix: The person(s) or institution appointed to administer an estate in accordance with the terms and conditions of a will. For an article on choosing an executor, please click here.

Fair market value: The price of an asset sold by a willing vendor to a knowledgeable purchaser, neither party being under duress.

Family trust: A living (inter vivos) trust set up by a parent or grandparent for other family members to lessen income taxes and transfer property upon death. For 10 reasons to use a family trust, please click here.

Fiduciary duty: An individual or institution having a lawful responsibility to act in the best interests of another party.

Guardian: The person(s) appointed in a will or by the court to take custody of minor children and their assets in the event of their parents' death or disability. For individuals with young children (or a dependent with a mental or physical disability), naming a guardian is highly recommended.

Holographic will: A will written completely in the handwriting of the person making it, signed and dated, but not witnessed. May not be a valid will in some jurisdictions.

Inter vivos trust: This type of trust is created during the lifetime of the settlor (the person creating the trust). Also known as a living will.

Intestate: A person who dies without a will. A partial intestacy is where a valid will does not address the entire estate.

Issue: All persons who are descended from a common ancestor. It is broader than the term "children," which is limited to the one generation.

Joint tenancy: A form of joint ownership of assets where the death of one of the joint owners results in the immediate transfer of ownership of the asset to the surviving joint owner or owners. This transfer is deemed to have taken place at the time of death.

Legacy: A gift of personal property or money given by a will. Also known as a bequest.

Net worth statement: Balance sheet showing what an individual owns (assets) versus what he owes (liabilities). To access your own printable net worth worksheet, please click here.

Personal net worth: A person's total assets, less total liabilities. The difference is their equity. To do a quick personal net worth calculation, please click here.

Power of attorney: A legal document that grants one person the authority to act on behalf of the person granting the power of attorney on various matters. For an introduction to powers of attorney in Canada, including a sample power of attorney, please click here.

Probate: A court declaration that certifies the validity of the will. It also confirms the executor(s) named within. For a list of probate tax rates by province, please click here.

Settlor: The individual who establishes a trust.

Spousal trust: A trust under which the settlor's spouse (and nobody else) is entitled to all of the income for his or her lifetime.

Testamentary trust: A trust created under a will that only takes effect after death.

Testate: The name given to a person who dies with a valid will, or the act of dying with a valid will.

Testator/Testatrix: The person who has made a will.

Trust: A legal structure in which one person (the settlor) transfers legal title to a trustee to manage the property for the benefit of a person or institution (beneficiaries).

Trustee: A person or a trust company responsible for administering assets on behalf of someone else. The trustee takes legal title to the trust property and is required to follow the terms of the trust. Settlors may name joint or co-trustees, who exercise equal authority.

Will: The legal statement of a person's (testator's) wishes concerning the disposal of his or her property after death. For an introduction to wills in Canada, please click here.