Capital:
The money or property which is transferred by the settlor to the trustee. This could include realized capital gains. Trust agreements deal how the capital will eventually be distributed and how the income of the trust will be dealt with.

Capital Beneficiary:
A beneficiary who is entitled to the capital of the trust.

Capital Cost Allowance:
The amount of tax relief that Revenue Canada allows for depreciation. For example, for wear and tear on capital property. This would include an asset that has a useful but diminishing life over time, e.g., car, equipment, furniture, etc. Different assets have different amounts of annual depreciation, e.g., ranging from 4% to 100%.

Capital Gain:
Gain earned on the sale of an asset or gain deemed to be realized on the death of an individual, as if the asset had been sold on the date of death, e.g., deemed disposition. The difference between a capital property’s fair market value and its adjusted cost base – essentially what you’ve made on the investment.

Capital Loss:
Loss experienced on the sale of an asset or loss deemed to be experienced on the death of an individual, as if the asset had been sold on the date of death.

Cash Surrender Value:
The money paid out by an insurer upon cancellation of a life insurance policy.

Casket:
A container, usually made of wood or metal, which holds the remains of the deceased. Also known as a coffin.

Charitable Gift Annuity:
A life annuity issued by a charitable organization. It is based on an individual paying more than the expected annuity payments. At the time of the recipients death, any capital remaining in the annuity reverts to the issuer for the benefit of the charity.

Charitable Remainder Trust:
In this case, you would transfer property to a trust and name a charity as the capital beneficiary. Until your death you would be the income beneficiary, you can use the property and receive any income it generates.

Codicil:
Change or addition to a will requiring all the formalities of signing and witnessing needed for a will.

Commissioner for Taking Oaths:
An official appointed by law to take affidavits such as a lawyer or notary public or other government appointee.

Consanguinity:
The relation or connection of persons descended from the same ancestor.

Continuing Power of Attorney:
A power of attorney which contains a “continuing” or “enduring” clause so that it will remain effective even if you become mentally incapable.

Convertible Term Insurance:
Allows the policy holder to change the term insurance policy to a whole life policy without providing evidence of insurability.

Coroner:
A medical examiner who conducts an investigation to determine the cause of death.

Credit Life Insurance:
Type of decreasing term insurance designed to pay the balance due on a loan if the borrower dies before the loan is repaid.

Creditor:
Person to whom money is due.

Current Assumption Whole Life Insurance:
Type of whole life insurance in which premium rates and cash values may vary according to assumptions regarding mortality, investment, and expense factors. Also called interest-sensitive whole life insurance.