Encroach (on Capital):
The process of paying out to the beneficiary portions of the money or other assets (capital) being held for that beneficiary in trust. The agreement may provide the trustee(s) with the power to pay capital from the trust to a beneficiary if certain conditions for using the capital as outlined in the trust agreement or will are met. The encroachment power may be broad, such as “for the general benefit” of the beneficiary or limited to specific needs, such as “in case of sickness” or “for educational purposes.” Many trust agreements provide for a specific person to get the income for life with the Capital ultimately going to someone else.

Endowment Fund:
A donation made to fund a specific objective. The charity would then invest the donation and use the income generated to fund the specified project.

Enduring Power of Attorney:
See “Continuing Power of Attorney.”

Escheat:
The process by which the assets of a deceased person pass to the provincial government when he or she dies without a will and without a spouse and next-of-kin.

Estate:
The right, title or interest which a person has in any property. Your estate consists of the assets owned by you at death which are governed by your will.

Estate Freeze:
A legal procedure which limits the growth in value of the freezor’s estate. This is done by diverting the growth to a subsequent generation.

Exclusions and Limitations:
Specified situations that are not covered by the insurance contract. Policies will often exclude disabilities caused by self-inflicted wounds or incurred during the course of illegal activities. Check your contract to see what exclusions and limitations apply.

Executor (m)/Executrix (f):
The person(s) or institution named under a will to administer, manage and/or transfer and estate, in accordance with the terms of the will. The executor(trix) will normally also be named as a trustee if the will requires a trust to be established, rather than having the assets distributed outright to the beneficiaries. Alternatively, the trustee could be a separate person or institution.