40 Facts

Question 1

Forms of giving

Answer 1

1) Being kind to another
2) Knowledge
3) money
4) skill
5) talent
6) items

Question 2

Healthy giving

Answer 2

giving out of excess in your life, when you want to give back or paw forward resulting in positive emotions

Question 3

Unhealthy Giving

Answer 3

Doesn’t enhance well-being of the giver or receiver, when giving is a method to gain power over another

Question 4

Preparing for giving

Answer 4

Create spending plans, evaluate needs wants and values, assess time, plan for expenses, avoid using credit

Question 5

Savings and Investing

Answer 5

Establish emergency savings prior to giving, savings and investing are valuable avenues to give

Question 6

What to know about giving

Answer 6

you’re better in a community than by yourself, your present self impacts your future self

Question 7

Specific gifts

Answer 7

particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelry, etc.)

Question 8

Non-specific gifts

Answer 8

does not refer to specific item. (all my personal possessions)

Question 9

Residuary gifts

Answer 9

everything left in estate after all debts, bills and taxes have been paid and specific and non specific gifts have been distributed

Question 10

Gifts to children

Answer 10

executors will keep for safekeeping gifts to children under 18 until they become of age unless will specifies guardian or parents take receipt of gift on child’s behalf

Question 11

Gifts to charities

Answer 11

Gifts left to charity in will are free from inheritance tax

Question 12

living will

Answer 12

a medical document that tells doctors and family members what kind of care you want if you become incapacitated and cannot express wishes.

Question 13

Difference between a will and a living revocable trust

Answer 13

1) A will designates where your assets go upon death

2) A living revocable trust with an incapacity clause will cover all of the bases.

Question 14

holographic will

Answer 14

A holographic will is one you write with your own hand

Question 15

2 ways to avoid estate tax

Answer 15

1) Set up an insurance trust

2) if your children are old enough and responsible, they can be the owner of the policy

Question 16

grantor

Answer 16

person who forms the trust and supplies the assets

Question 17

trustee

Answer 17

person named in the trust to administer the trust according to the terms and state trust law

Question 18

beneficiary

Answer 18

the person for whose benefit the trust property is held by the trustee

Question 19

intent from grantor

Answer 19

must have a valid legal purpose

Question 20

property

Answer 20

asses subject to the trust

Question 21

living trust

Answer 21

trust you assign the management of assets to a trustee while you’re living

Question 22

Revocable living trust

Answer 22

living trust that can be dissolved

Question 23

Irrevocable living trust

Answer 23

Living trust cannot be changed

Question 24

Purpose of a Will

Answer 24

Ensures the estate is distributed as desired
Beneficiaries, the persons specified in will receives a part of an estate, to prevent the courts from assigning an administrator who may not carry out your wishes.

Question 25

Types of Wills

Answer 25

• A Living Will
• Oral will
• Testamentary will
• holographic will

Question 26

oral will

Answer 26

spoken testaments given before witnesses. Not widely recognized from a legal perspective

Question 27

Testamentary Will

Answer 27

formally prepared document signed in the presence of witnesses.

Question 28

Elements of a Will

Answer 28

name and place of residence
description of assets
names of spouse, children and other beneficiaries
alternate beneficiaries
specific gifts
establishment of trust if desired
cancellation of debts owed to you
name of executor to manage the estate
name of guardian for minor children
name of alternative guardian
your signature
witnesses' signatures

Question 29

Estate

Answer 29

An estate is the assets of a deceased person after all debts are paid

Question 30

Estate - Primary Functions

Answer 30

Peace of Mind
Maintain Control
Protect Assets for Yourself and Loved Ones
Estate Taxes
Creditors
Special Needs
Avoid Probate

Question 31

Consequences of No Planning

Answer 31

May need a guardianship
Medical wishes may not be carried out
State Law via a public probate process decides who receives your assests and in what proportions
Court decides who raises your minor children
Heirs may unnecessarily incur estate taxes

Question 32

Determining estate taxes

Answer 32

Value of estate is the value of all assets minus any liabilities minus funeral and administrative expenses

Question 33

Tax Relief Act of 2001

Answer 33

gradually increase tax free limit while reducing a maximum tax rate

Question 34

Proper planning

Answer 34

reduce these taxes

Question 35

Estate Taxes 2

Answer 35

calculate the value of your estate so that you can plan appropriately if your net worth exceeds the tax-free limit.

Question 36

Probate

Answer 36

a legal process that declares a will valid and ensures the orderly distribution of assets.

Question 37

Executing the Will

Answer 37

executor files forms in probate court, provides a copy of the will, a list of assets and liabilities of deceased, pays debts and sells necessary assets

Question 38

Executing the Will 2

Answer 38

The executor typically opens a bank account for this purpose.

Question 39

When can you write a will ?

Answer 39

A Will can be written by any person of legal age and being of sound mind and memory

Question 40

What does a will ensure ?

Answer 40

It ensures that your assets will be given to family members or a designated beneficiary