Re-designed a character of mine and put effort in to actually doing it more properly this time as I try to flesh out my Eldenheart world a bit more.
I'm calling the little fella Rorric for now and the soul in the sword is named Vorona (Rick & Rona?), and they are siblings and of the Shubin race.
Vorona was in an accident, a cave in, and was about to lose her life. Her brother is a skilled weapons enchanter (as it is the specialty of his race) and found a way to trap her dying soul in an enchanted sword. This is however a highly forbidden type of enchantment as it is considered a curse in the Shubin society.
Rorric and his "cursed" sword/sister was exiled from the capital because of this.