Beneficiary: a person (or organization or charity) who receives a benefit under a Will or financial plan such as a life insurance policy or annuity.

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.

Codicil: an amendment which modifies the terms of a Will. A codicil is useful for relatively minor changes. For extensive revisions, it is best to have a new Will drawn up which incorporates the changes you wish and revokes any previous Wills.

Estate: the sum total of a person's assets.

Executor (male) or 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 your assets and the length of time required to administer your estate are important considerations in choosing an executor or executrix.

Guardian: the person or persons appointed in a Will or by the court to have custody of minor children and their assets. If you have young children (or, a dependent who is unable to function independently because of a mental or physical disability), it is highly recommended that you name a guardian.

Inter-vivos trust (living trust): a trust created by a trust deed signed by a living person. See Trusts.

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.

Legacy: a gift of personal property transmitted by a Will.

Net worth statement: the balance sheet which shows what you own, assets – and what you owe, liabilities. Assets minus liabilities tells you what your net worth is – and that's the starting point for your estate planning.

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.

Probate: the official confirmation of a Will by the courts, confirming the executor or executrix's legal authority.

Real property: land and buildings; also known as 'real estate' or 'realty.'

Residual beneficiary: the beneficiary to whom the residue of the estate is left.

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.

Testator or testatrix: the person who makes the Will.

Testamentary trust: a trust created by a Will. See Trusts.

Trustee: one who manages property or money for another.

Trusts: 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: 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.

TD Private Client Group Estates and Trusts 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 Estates and Trusts branch nearest you by consulting our Estates and Trusts Branch Directory.