Glossary

An item with monetary value, including financial assets (stocks, bonds, mutual funds) and tangible property (real estate, businesses, fine art, jewellery).

A person, charity, or non-profit organization designated in a will to receive some or all of an individual’s assets after their death.

A capital gain occurs when an individual sells a security, such as a stock or mutual fund, for more than its adjusted cost base (the purchase price of the investment plus any commissions and fees).

A gift made through a will or trust to a person, charity, non-profit organization, or foundation. A charitable bequest is one of the most flexible ways for an individual to support causes that are meaningful to them and to leave a lasting impact after their passing. Charitable bequests can be structured as specific, residual, or contingent. 

A legal document that modifies or revokes portions of a previously executed will.

A provision made in a will that directs a gift to an alternative beneficiary or beneficiaries if the intended beneficiary is unable to receive the gift due to their passing before the donor.

A planned gift or bequest that is decided upon in the present, but received by a charity or non-profit organization at some point in the future, usually when the donor (and his or her spouse) passes. A deferred gift is arranged in a will or estate plan and can include life insurance policies, annuities, and property.

A charitable giving vehicle administered by a qualified third-party sponsor that manages charitable donations for an individual, family, or organization. It enables donors to make charitable contributions, receive an immediate tax deduction, and then subsequently recommend donations from the fund to specified charities over time.

A person’s estate consists of all of their property owned at death – real estate, financial assets, businesses, personal possessions (including jewellery, fine art)  – minus any liabilities such as outstanding mortgages, other debt, and unpaid taxes.

An executor (referred to as a “liquidator” in Québec) is an individual or financial institution named in a will to carry out the wishes of a deceased person and settle their estate.

Also referred to as “in-kind donations,” gifts in kind are non-monetary donations made to a charity or non-profit organization of personal property, financial assets (such as stocks and bonds), equipment, real estate, and professional services.

To have died without a will. An individual who passes without a valid will is said to have died “intestate.”

A gift to a charity or non-profit organization specified in an individual’s will. The gift can include cash, securities, or property, or a percentage of a person’s estate. 

The sum of money paid out to a designated beneficiary or beneficiaries when the life insurance policyholder passes away.

A type of will that is signed, witnessed and authenticated by a notary public, who ensures that the will complies with legal requirements. A notarial will provides an additional layer of assurance that the wishes of the testator (the person making the will) will be carried out according to their instructions.

An official who serves as an impartial witness to the signing of legal documents, such as a wills, trusts, or powers of attorney.

The most straightforward type of gift to a charity, one that is given without any conditions. It may be in the form of cash, securities (such as stocks or mutual funds), real estate or personal property.

Probate is the legal process through which a court recognizes the validity of a person’s will and appoints the executor named in the will to administer the estate – which involves settling any outstanding debts of the deceased and distributing the remainder of the assets according to instructions laid out in the will. When there is no will in place, the court will oversee the distribution of the estate according to provincial law. 

Securities such as stocks, options, bonds, and mutual funds that are traded openly on public markets.

An RESP is a savings and investment account which is registered with the Government of Canada. It is designed to help families save for their children’s post-secondary education. The investments in an RESP grow tax-free until the funds are withdrawn to pay for education costs. 

Refers to types of investments or investment accounts that are registered with a regulatory authority, such as the Canada Revenue Agency (CRA). In Canada, registered investment accounts include Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). These accounts typically offer tax advantages that encourage Canadians to save and invest.

A retirement account registered with the Government of Canada that is designed to provide retirees with an income stream from their savings. Individuals who have RRSPs are required to convert their savings into an income option when they reach 71, and RRIFs are one of the most popular choices. Investment earnings in a RRIF are not taxable, however withdrawals are considered taxable income.

A Registered Retirement Savings Plan (RRSP) is a savings and investment account registered with the Government of Canada. It is designed to help and encourage individuals to save for retirement. The plan’s assets grow on a tax-deferred basis and contributions to an RRSP are tax-deductible.

A gift made of what remains of a donor’s estate after all specific bequests, debts, taxes, and administrative expenses have been paid. It is meant to ensure that individuals or favoured charities receive a share of the estate after all other obligations are met.

A gift of a specific asset (such as jewelry, fine art, securities) or a specified amount of money made through a will to a charitable organization or person.

An amount of money that taxpayers can subtract directly from the income taxes they owe. Tax credits effectively reduce the total amount of taxes owed.

An agreement under which assets are set aside by an individual (the “settlor”) and managed by a trustee for the benefit of another individual (the “beneficiary”). A lawyer typically establishes the trust, which can be used to preserve a financial legacy and protect assets for the beneficiaries of the trust. 

A legal document that specifies how an individual’s assets and property are to be distributed after their death. Individuals can choose to include charitable organizations or non-profit organizations as beneficiaries in their will, allowing those individuals to support causes that are important to them.