Assets
Things that you own such as cash, personal property that can be turned into cash, or certain types of money in a trust.
Annual Income
This is the beneficiaries' net adjusted income as defined by the Canada Revenue Agency (CRA). It takes into account any credits and deductions received.
Attorney
An attorney is a person who has been chosen to make important decisions for someone else.
BC Disability Assistance
Financial support plus medical, dental, and pharmaceutical benefits provided to people with disabilities in British Columbia.
Beneficiary
A person to whom you leave things or who is entitled to receive things through a trust (money, gifts, insurance policy, RRSP, trust).
Bequest
A gift of a specific item of property or a specific amount of cash identified in your will.
Canada Disability Savings Bond
The Canada Disability Savings Bond is a federal government contribution to the RDSP of up to $1,000 a year to a maximum of $20,000.
Capital Gain
If you sell a share or asset for a higher price than you paid for it, the profit you receive is called a capital gain.
Co-Decision Maker
The person appointed by the court, with the agreement of an adult suffering from a significant impairment, to assist that adult in making health care or other personal decisions.
Codicil
A legal document used to amend portions of your original Will and requiring the same formalities of signing and witnessing needed for a Will.
Committeeship
Someone else (“the committee”) has been appointed by the court to make financial, business, legal decisions (Committee of Estate) and/or personal and health care decisions (Committee of Person) for you.
Compounded Interest
Money invested accumulates interest which then continues to grow as more interest is accumulated.
Continuing Power of Attorney for Personal Care
A legal written document that allows you to give permission to someone else to make decisions on your behalf involving matters related to your personal care.
Continuing Power of Attorney for Property
A legal written document that allows you to give permission to someone else to make decisions on your behalf involving matters related to your property, while you are still alive.
Connector
A person who is trained to assist you or others to create, build and maintain a personal support network. The role can be paid or unpaid.
Custodian
Someone who has custody of a child under 18. Having custody means having the right to make decisions about questions like where the child will live and go to school. Usually, one or both parents will be the child’s custodians, but parents can also choose someone in their will to be the custodian if they die.
Disability Assistance
A benefits program of the British Columbia government, managed and delivered by the Ministry of Social Development and Poverty Reduction (MSDPR). Disability assistance is sometimes called “PWD", which is an abbreviation for “persons with disabilities”.
Disability Tax Credit (DTC) (Form T2201)
A federal tax credit (with corresponding provincial tax credit) that reduces income taxes payable. This credit is given in recognition of a disability that restricts your activities of daily living. (See
Tax Credits)
Discretionary
Having discretion means having the freedom to make certain decisions.
Discretionary Trust
A type of trust, in which the trustee has complete discretion (freedom) over how the trust money will be used for the benefit of the beneficiary. The beneficiary cannot demand that funds be released. (See
Trust )
Dividend
Distribution of a portion of a company's profits to its shareholders (people who own a share of the company’s stock). Dividends can be issued as cash payments, shares of stock, or other property.
Eligibility / eligible
Being eligible for something means being qualified for it or meeting the requirements. For example, if you are eligible for ODSP or PWD, this means you meet all the requirements for receiving ODSP or PWD benefits.
Employment Support
Services that help you prepare for and find a job if you are able and willing to work. Employment Supports, which are provided by service providers in the community, include supports like job coaching, job training, translation services, tools and equipment, special clothing and transportation help.
Enduring Power of Attorney
A written legal document that allows you to give permission to someone else (the “attorney”) to make financial and legal decisions for you even if you become incapable of making decisions. (See
Substitute Decision-making.)
Estate Trustee (also referred to as an “Executor”)
The person who makes sure that the instructions in your will are carried out after you die (See
Will).
Executing
Executing documents (Example: Powers of Attorney) means signing them so as to make them legally valid.
Executor (or Personal Representative)
The person or professional named in the Will who is responsible for ensuring that the wishes in your Will are carried out.
Exempt Asset
A liquid asset (an asset that can easily be converted into cash) that will not impact the determination of eligibility for government benefits.
Grant of Probate
A court order proving the executor you have named can act on your behalf.
Guardianship
Someone else (“the guardian”) has been appointed by the court to make decisions for you.
Guaranteed Income Supplement
A benefit that provides additional money for seniors with a low-income who are also receiving the Old Age Security Benefit.
Grant
This is matching federal money that can be received if the beneficiary, family, or friends contribute to the RDSP.
Henson Trust
This is a type of discretionary trust (see
Discretionary Trusts);that is available for individuals in Ontario. A Henson Trust is designed for People with Disabilities to help protect their assets as well as their right to collect government benefits and entitlements such as The Ontario Support Program (ODSP) (See
ODSP).;
Holdback Amount
The total of government grant and bonds paid into the plan (or into any previous RDSP of the beneficiary) in the immediately preceding 10-year period, less any amount of grant and bonds paid in that 10-year period that has been repaid to the government.
Holder of the RDSP
A person who is legally authorized to manage and make decisions regarding an RDSP. In some cases, the holder and beneficiary will be the same person, while in other cases, the beneficiary and holder will be different people.
Income Support
A monthly payment intended to help you pay for living expenses, like food and housing.
Income Tax Form T2201
Application form for the Disability Tax Credit.
Inter Vivos Trust
A type of trust, which is established while the settlor (person setting up the trust) is still alive. The name means “among living people” in Latin. An
inter vivos trust is set up by means of legal documents other than a will. (See
Trust)
Interstate
A person who dies intestate dies without a valid Will.
Investment
An asset that is purchased with the hope that it will provide income in the future or will be sold at a higher price for a profit.
Managing money
This means making decisions about money, such as what type of bank account to have and whether to save money or spend it.
Non-discretionary Trust
A type of trust, in which the trustee does not have complete authority to decide about payments to the beneficiary. The trustee is not permitted to hold funds back if a request has been made by the beneficiary, who may or may not have been the settlor. (See
Trust)
Old Age Security Program
This program provides income for seniors over the age of 65 who have lived in Canada for over 10 years.
Ontario Disability Support Program (ODSP)
ODSP stands for Ontario Disability Support Program. ODSP is a program of the Ontario government, managed and delivered by the Ministry of Community and Social Services (MCSS). ODSP is designed to benefit people with disabilities who are in financial need.
Payment (RDSP)
Money withdrawn from RDSPs is called payments.
Personal Directive
A written document giving someone else the authority to make personal care decisions on your behalf should you not have the capacity to do so.
Probate
The procedure by which the Will of the deceased person is legally approved by the court and documented. It also confirms the appointment of your executor.
Private Contributions (RDSP)
This is any money that is contributed to an RDSP by the individual, family or friends.
Registered Disability Savings Plan
A long-term savings and investment plan for individuals who qualify for the disability tax credit and who are under the age of 60.
Representation Agreement
A type of supported decision-making. (See
Supported Decision-Making)
Revocation
Cancelling parts of or all an existing Will.
Settlor
The individual who establishes a trust.
Social Insurance Number (SIN)
A unique number that you use to identify yourself. It is a 9-digit number. You need this number to use some government programs and to work in Canada. You also need a SIN to open an RDSP.
Substitute Decision-making
Another person has the legal authority (permission) to make financial and legal decisions on your behalf.
Supported Decision-making
A legal arrangement where you can choose someone you trust to provide support to you with certain types of decisions. The actual decision, however, is still made by you, not by family members or others supporting you.
Tax Credits
An amount that you can claim to reduce the amount of tax you pay. Credits are used to recognize that you may incur additional expenses or have reduced earning power. Provinces are free to either follow the federal tax credit system or introduce tax credits that are unique to the province.
Tax Deductions
An expense that you can deduct from your income. By reducing your income, you reduce your amount of tax owing.
Tax-free Growth
The growth of money invested in a registered disability saving plan will not be taxed. The Tax-Free Savings Plan (TTFSA) is the best example. RDSP's do not have tax-free growth.
Tax-deferred Growth
The growth of money in a registered disability savings plan will not be taxed until it leaves the plan. The growth is subjected to tax when it is taken out of the plan. RDSPs are like this.
Testamentary Trust
A type of trust, which is set up by someone (the settlor) in his or her will. It does not exist until after the settlor dies. Parents often choose this method to ensure that an adult child with a disability will have funds to live on after the parents are gone.
Testator
The person who makes the Will.
Trust
A legal arrangement set up by one person (the settlor) in which assets, contributed by the settlor, are managed by one or more trustees for the benefit of one or more beneficiaries.
Trustees
A person or company named in a will or trust document to manage money or other assets for someone else, who is called the beneficiary.
Will
The legal document that takes effect upon your death and tells people what to do with your estate. It helps makes life easier for those left behind by providing a plan for them to follow and by naming who is in charge.