Estate Planning

Legalese

By Hull & Hull LLP

Language is the primary tool of a lawyer's trade. Although there has been movement in modern times toward 'plain language', history steeped in tradition demands that we maintain our own dictionary. Building on Wednesday's theme of unusual legal terms, here are some you don't hear every day.

Aliquot: Sounds like an exotic fruit but is actually a definite fractional share, usually applied when dividing and distributing a dead person's estate or trust assets.

Dynasty Trust: No, it is not a sequel to the 80's TV series. It is a trust designed to pass down assets to U.S. beneficiaries for many generations in a manner that avoids U.S. transfer tax. For more general information see this Globe and Mail article.  

Emphyteusis: If you guessed a medical condition, deduct 2 points. This is a right subject to assignment and descent, charged on productive real estate. The person who has this right can enjoy the property on the condition of taking care of the estate or paying taxes or rent annually.

Hotchpot: This one has nothing to do with cooking. It is the blending and mixing of property belonging to different persons in order to divide it equally.  For more on hotchpot clauses, see this article by Corina Weigl.

Parricide: An act of killing one's father, a family member or close relative. Not recommended as a method to hasten one's inheritance. 

Privileged Will: An informal will made by a soldier or a sailor, valid in spite of defect of form. Can be signed by, or on behalf and in the presence of, the soldier or sailor. No witness necessary. I'll bet Captain High Liner has one of these. For more, see Rodney Hull & Ian Hull, 'Probate Practice' 4^th ed. (Toronto: Thomson Canada Limited, 1996) p. 74; Succession Law Reform Act, s. 5

Scrivener's Error: An error made by clerical staff in a legal document. This term is mainly used to save higher officials from the blame of committing a mistake by putting the blame on clerical staff instead. This one is just plain clever!

Usufruct: Not a sugar alternative but a sweet deal for the person who holds it. The right to use and enjoy the property of another for a stipulated time period or for life. No need to share with the real owner but you cannot alter, destroy or dispose of the property.

For definitions of these and other terms check out the law.com online legal dictionary.

Have a great weekend!

Sharon Davis

Full post as published by Toronto Estate Law Blog on January 08, 2010 (boomark / email).