Understanding Key Legal Terms When Creating Your Will Online
Creating a Legal Will or Power of Attorney can sometimes feel confusing with unfamiliar legal terms. This glossary from FormalWill.ca provides clear, simplified definitions of the most common Canadian estate-planning terms — from Executor and Probate to Charitable Giving and Trust.
Whether you’re writing your Online Will, naming an Executor, or managing an Estate, this guide will help you understand every step of the process.
A – D
- Administrator A court-appointed person who manages the estate of a deceased individual who died without a valid Will.
- Affidavit of Execution A sworn statement by one of the witnesses confirming that a Will was properly signed and witnessed. Often required during the probate process.
- Asset Anything of financial or sentimental value owned by an individual — such as money, real estate, vehicles, jewellery, investments, or personal belongings.
- Attorney (under a Power of Attorney) A person you authorize to make decisions on your behalf regarding your financial, legal, or health matters.
- Bequest / Legacy A gift left to a person or organization in a Will (e.g., “I leave $10,000 to my nephew” or “I leave my home to my spouse”).
- Beneficiary An individual or organization (such as a charity) entitled to receive gifts, funds, or assets from a Will, trust, or insurance policy.
- Capital Gains Tax A tax payable on the increase in value of certain assets (e.g., property or investments) when they are transferred or sold, including after death.
- Certificate of Appointment of Estate Trustee The formal Ontario court document confirming the Executor’s legal authority to act. Known as a Grant of Probate in other provinces.
- Charitable Bequest A donation left to a registered Canadian charity through a Will. You can easily include charitable gifts when creating your Will on FormalWill.ca.
- Codicil A legal amendment or addition to an existing Will, used to make changes without rewriting the entire document.
- Court Grant / Grant of Probate The court’s confirmation that a Will is valid and that the named Executor has authority to administer the estate.
- Creditor An individual or organization to whom the deceased owed money or debt.
- Deceased The individual who has passed away and whose estate is being administered.
- Dependent A person who relies financially on the deceased, such as a child, spouse, or family member.
E – H
- Encumbrance A claim, lien, or mortgage on a property that may affect its transfer or sale.
- Estate Everything an individual owns at the time of death — including real estate, personal property, investments, and financial accounts.
- Estate Administration Tax (Probate Fee) The provincial fee or tax payable when applying for probate. The amount varies by province and is based on the total value of the estate.
- Estate Trustee / Executor The person named in a Will to carry out the deceased’s wishes, manage assets, pay debts, and distribute the estate to beneficiaries.
- Executor’s Duties The responsibilities of an Executor, which include collecting assets, paying taxes and debts, filing probate documents, and distributing the estate according to the Will.
- Fiduciary A person or organization legally bound to act in the best interests of another — for example, an Executor, Trustee, or Attorney.
- Funeral Wishes Instructions left in a Will or a separate document about funeral, burial, or cremation preferences.
- Grant of Probate The court-issued document officially recognizing the Executor’s legal authority to manage the deceased’s estate.
- Guardian (of the Person) The adult appointed in a Will to care for minor children if both parents have passed away.
- Guardian (of the Property) A person appointed to manage a minor’s inheritance or assets until they reach adulthood.
I – L
- Incapacity A legal determination that a person is unable to manage their own affairs or make decisions due to illness or impairment.
- Inheritance Money, property, or other assets received from a deceased person’s estate.
- Intestate The condition of dying without a valid Will. In this case, provincial laws decide how the estate is distributed.
- Joint Tenancy A form of co-ownership where the surviving owner automatically inherits the deceased owner’s share.
- Liabilities Debts or obligations owed by the deceased at the time of death.
- Living Will (Power of Attorney for Personal Care) A legal document expressing your wishes about medical treatment, long-term care, or end-of-life decisions if you cannot communicate them yourself.
M – R
- Minor A person under the age of majority (18 or 19, depending on the province) who cannot directly inherit assets without a guardian or trustee.
- Next of Kin The closest living relatives of a deceased person, such as a spouse, children, or siblings.
- Notary Public / Commissioner of Oaths An official authorized to witness or certify legal documents and administer oaths.
- Personal Property All movable property such as money, jewellery, furniture, vehicles, and investments — excluding land or buildings.
- Power of Attorney (POA) A legal document that gives someone authority to act on your behalf for financial, legal, or healthcare matters.
- Power of Attorney for Property Allows someone to handle your finances, pay bills, or manage property if you are unable to do so.
- Probate The legal process where a court confirms a Will’s validity and authorizes the Executor to administer the estate.
- Probate Fee / Probate Tax A tax or fee charged by the province for the court certification of a Will.
- Real Property Land and buildings owned by the deceased.
- Residue / Residuary Estate What remains of the estate after debts, taxes, and specific gifts have been distributed.
- Revocation The act of cancelling or invalidating a previous Will, typically by creating a new one.
S – Z
- Signing Instructions Guidelines explaining how to properly sign and witness your Will to make it legally valid.
- Sound Mind A legal term indicating that a person understands the nature and effect of the document they are signing (a key requirement for a valid Will).
- Spouse A married or common-law partner as recognized under Canadian law.
- Statement of Assets and Liabilities A document listing everything owned and owed by the deceased at the date of death.
- Tenancy in Common A type of co-ownership where each person’s share passes according to their Will, rather than automatically transferring to the surviving owner.
- Testamentary Trust A trust created within a Will that comes into effect upon death, often used to manage funds for minors or dependents.
- Testator / Testatrix The person who creates and signs a Will.
- Trust A legal arrangement in which one person (the Trustee) holds property for the benefit of another (the Beneficiary).
- Trustee A person or institution appointed to manage property or funds under a trust and distribute them according to the trust terms.
- Witness A person who observes the signing of a Will and also signs to confirm it was executed correctly. Witnesses cannot usually be beneficiaries.