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Definition of ProbateProbateLetters probate represent judicial certification of the validity of a Will and judicial confirmation ofthe authority of the personal representative who is to administer the Will. Essentially, probate fees are a tax on a person's estate and except for the provinces of Quebec and Alberta, there is no limit to this tax.
Related Terms:BeneficiaryThis is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario. Segregated FundSometimes called seg funds, segregated funds are the life insurance industry equivalent to a mutual fund with some differences.The term "Mutual Fund" is often used generically, to cover a wide variety of funds where the investment capital from a large number of investors is "pooled" together and invested into specific stocks, bonds, mortgages, etc. 12b-1 fundsMutual funds that do not charge an upfront or back-end commission, but instead take out up to Annual fund operating expensesFor investment companies, the management fee and "other expenses," Balanced fundAn investment company that invests in stocks and bonds. The same as a balanced mutual fund. Balanced mutual fundThis is a fund that buys common stock, preferred stock and bonds. The same as a Beneficiary (Credit Insurance)The person or party designated to receive proceeds entitled by a benefit. Payment of a benefit is triggered by an event. In the case of credit insurance, the beneficiary will always be the creditor. ![]() Beta equation (Mutual Funds)The beta of a fund is determined as follows: Beta (Mutual Funds)The measure of a fund's or stocks risk in relation to the market. A beta of 0.7 means Closed-end fundAn investment company that sells shares like any other corporation and usually does not Contingent BeneficiaryThis is the person designated to receive the death benefit of a life insurance policy if the primary beneficiary dies before the life insured. This is a consideration when husband and wife make each other the beneficiary of their coverage. Should they both die in the same car accident or plane crash, the death benefits would go to each others estate and creditor claims could be made against them. Particularly if minor children could be survivors, then a trustee contingent beneficiary should be named. Cost of fundsInterest rate associated with borrowing money. Dividend yield (Funds)Indicated yield represents return on a share of a mutual fund held over the past 12 EFT (electronic funds transfer)funds which are electronically credited to your account (e.g. direct deposit), or electronically debited from your account on an ongoing basis (e.g. a pre-authorized monthly bill payment, or a monthly loan or mortgage payment). A wire transfer is a form of EFT. Employee stock fundA firm-sponsored program that enables employees to purchase shares of the firm's Endowment fundsInvestment funds established for the support of institutions such as colleges, private ![]() Federal fundsNon-interest bearing deposits held in reserve for depository institutions at their district Federal Federal funds marketThe market where banks can borrow or lend reserves, allowing banks temporarily Federal funds rateThis is the interest rate that banks with excess reserves at a Federal Reserve district bank Federal Funds RateThe interest rate at which banks lend deposits at the Federal Reserve to one another overnight. Forward Fed fundsFed funds traded for future delivery. Fund familySet of funds with different investment objectives offered by one management company. In many Fundamental analysisSecurity analysis that seeks to detect misvalued securities by an analysis of the firm's fundamental analystsAnalysts who attempt to find under- or overvalued securities by analyzing fundamental information, such as earnings, asset values, and business prospects. Fundamental betaThe product of a statistical model to predict the fundamental risk of a security using not Fundamental descriptorsIn the model for calculating fundamental beta, ratios in risk indexes other than Funded debtDebt maturing after more than one year. ![]() funded debtDebt with more than 1 year remaining to maturity. Funding CostsThe price of obtaining capital, either borrowed or equity, with intent to carry on business operations. Funding ratioThe ratio of a pension plan's assets to its liabilities. Funding riskRelated: interest rate risk Funds From Operations (FFO)Used by real estate and other investment trusts to define the cash flow from Global fundA mutual fund that can invest anywhere in the world, including the U.S. growth fundsMutual funds that seek long-term capital growth. This type of fund invests primarily in equity securities. Hedge fundA fund that may employ a variety of techniques to enhance returns, such as both buying and High-coupon bond refundingRefunding of a high-coupon bond with a new, lower coupon bond. Income beneficiaryOne who receives income from a trust. Income fundA mutual fund providing for liberal current income from investments. income fundsMutual funds that seek regular income. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares. Index fundInvestment fund designed to match the returns on a stockmarket index. index fundsMutual funds that aim to track the performance of a specific stock or bond index. This process is also referred to as indexing and passive management. internally generated fundsCash reinvested in the firm; depreciation plus earnings not paid out as dividends. International fundA mutual fund that can invest only outside the United States. international fundA mutual fund that can invest in securities issued anywhere outside of Canada. International Monetary FundAn organization founded in 1944 to oversee exchange arrangements of International Monetary Fund (IMF)Organization originally established to manage the postwar fixed exchange rate system. Irrevocable BeneficiaryLegal designation that cannot be contested. (See beneficiary) Labour-Sponsored Venture FundsVenture capital corporations established by labour unions. They function as other venture capital corporations but are subject to government regulation. Liability funding strategiesInvestment strategies that select assets so that cash flows will equal or exceed Life Income FundCommonly known as a LIF, this is one of the options available to locked in Registered Pension Plan (RPP) holders for income payout as opposed to Registered Retirement Savings Plan (RRSP) holders choice of payout through Registered Retirement Income funds (RRIF). A LIF must be converted to a unisex annuity by the time the holder reaches age 80. Load fundA mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of Low-coupon bond refundingRefunding of a low coupon bond with a new, higher coupon bond. Match fundA bank is said to match fund a loan or other asset when it does so by buying (taking) a deposit of Money market fundA mutual fund that invests only in short term securities, such as bankers' acceptances, money market fundA type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates. Mutual fundMutual funds are pools of money that are managed by an investment company. They offer mutual fundWhen you buy a mutual fund, you are pooling your money with that of other investors. An investment professional called a portfolio advisor takes that money and invests it for all the investors in a variety of different securities as determined by the investment objectives of the mutual fund. This gives you the benefit of diversification that is, being invested in many different investments at once. Mutual fund theoremA result associated with the CAPM, asserting that investors will choose to invest their Net advantage of refundingThe net present value of the savings from a refunding. No-load fundA mutual fund that does not impose a sales commission. Related: load fund No load mutual fundAn open-end investment company, shares of which are sold without a sales charge. NonrefundableNot permitted, under the terms of indenture, to be refundable. NSF (non-sufficient funds)This appears on your statement if there are insufficient funds in your account to cover a cheque that you have written or a pre-authorized payment that you have already arranged. You will be charged a service fee for non-sufficient funds. Objective (mutual fund)The fund's investment strategy category as stated in the prospectus. There are Open-end fundAlso called a mutual fund, an investment company that stands ready to sell new shares to the Overfunded pension planA pension plan that has a positive surplus (i.e., assets exceed liabilities). Pension FundAssets used to pay the pensions of retirees. An investment institution established to manage the assets used to pay the pensions of retirees. Preferred BeneficiaryUsed in older contracts to confer the same rights as an irrevocable beneficiary. Applied to family members. Prerefunded bondRefunded bond. Private Export Funding Corporation (PEFCO)Company that mobilizes private capital for financing the Purchase fundResembles a sinking fund except that money is used only to purchase bonds if they are selling Pure index fundA portfolio that is managed so as to perfectly replicate the performance of the market portfolio. RefundableEligible for refunding under the terms of indenture. Refunded bondAlso called a prerefunded bond, one that originally may have been issued as a general RefundingThe redemption of a bond with proceeds received from issuing lower-cost debt obligations Regional fundA mutual fund that invests in a specific geographical area overseas, such as Asia or Europe. Registered Retirement Income Fund (Canada)Commonly referred to as a RRIF, this is one of the options available to RRSP holders to convert their tax sheltered savings into taxable income. Revenue fundA fund accounting for all revenues from an enterprise financed by a municipal revenue bond. savings fundsMutual funds that seek to preserve capital. This type of fund invests primarily in short-term securities with an average term to maturity of one year or less, or in the case of money market funds, 90 days or less. Shareholders’ fundsThe capital invested in a business by the shareholders, including retained profits. Single country fundA mutual fund that invests in individual countries outside the United States. sinking fundfund established to retire debt before maturity. Sinking fund requirementA condition included in some corporate bond indentures that requires the issuer to Stopping curve refunding rateA refunding rate that falls on the stopping curve. Surplus fundsCash flow available after payment of taxes in the project. Term Fed FundsFed funds sold for a period of time longer than overnight. Two-fund separation theoremThe theoretical result that all investors will hold a combination of the riskfree Underfunded pension planA pension plan that has a negative surplus (i.e., liabilities exceed assets). Unfunded debtDebt maturing within one year (short-term debt). See: funded debt. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |