Incapable/Incompetent:
Terms used to indicate that a person is no longer able to understand the information that is relevant to making a decision and is not able to appreciate the “reasonable foreseeable consequences of the decision or lack of the decision.” Each province has legal requirements for determining capability/competence. It is a court and/or health care practitioners who determine if a person is incapable/incompetent. Refer to “mental incapacity.”

Income:
The money generated through the investment of the capital. For example, dividends and interest.

Income Beneficiary:
The person or persons entitled to the income generated by the trust property. The income includes dividends and interest. It does not commonly include capital gains, which become part of the capital. See “life tenant.”

Indexed Life Insurance:
Whole life insurance in which the death benefit and the premium increase automatically every year in accordance with any increase in the Consumer Price Index (CPI).

Inter vivos Trust:
This type of trust document comes into effect during the lifetime of the settlor. Also known as a living trust.

Interment:
Another term for burial.

Intestate:
The person who dies without a will. A partial intestacy is where a valid will does not deal with all of the estate.

Intestate Distribution:
If a person dies without a will, the process of distribution of assets according to a pre-determined formula.

Irrevocable Trust:
The person who created the trust cannot revoke it.

Issue:
All persons who have descended from a common ancestor. It is a broader term than children which is limited to one generation. (e.g. grandchildren, great-grandchildren, etc.)