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Personal Finance > 50 Terms Personal Finance > Flashcards

50 Terms Personal Finance Flashcards

1
Q

Unhealthy Giving

A

Does not enhance the well-being of both the receiver and giver.
When giving is a method of gaining power over another.
UHG

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2
Q

Grantor

A

person who forms the trust and supplies the assets

GRA

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3
Q

Trustee

A

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

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4
Q

Beneficiary

A

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

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5
Q

Intent from grantor

A

must have a valid legal purpose IFG

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6
Q

property

A

asses subject to the trust PROP

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7
Q

Specific gifts

A

particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided SG

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8
Q

Non-specific gifts

A

does not refer to specific item NSG

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9
Q

Residuary gifts

A

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

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10
Q

Gifts to children

A

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 GTC

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11
Q

Gifts to charities

A

Gifts left to charity in will are free from inheritance tax. GCHAR

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12
Q

Living trust

A

trust in which you assign the management of your assets to a trustee while you are living LT

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13
Q

Revocable Living Trust

A

living trust that can be dissolved RIT

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14
Q

Irrevocable Living trust

A

living trust that cannot be changed, although it can provide income to the grantor ILT

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15
Q

A Living Will

A

a document to make your family aware of the type of care you want to receive if you should become terminally ill, on life support or permanently unconscious. This document is only effective in the event you are unable to express your wishes yourself. ALW

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16
Q

Oral Will

A

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

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17
Q

Testamentary Will

A

formally prepared document signed in the presence of witnesses. TW

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18
Q

Holographic Will

A

written without the presence of witness. Rarely hold up in court. HW

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19
Q

Will

A

is a legal document by a person, the testator, that names one or more persons, executor, to manage his or her estate and provides for the distribution of property upon death. It can also identify a preferred guardian for any surviving children. W

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20
Q

Purpose of a Will

A

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

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21
Q

Elements of a Will

A

A Will is a legal document designating the transfer of property and assets upon a person’s death. A Will can be written by any person of legal age and being of sound mind and memory. It ensures that your assets will be given to family members or a designated beneficiary. If you have no heirs and die without a will, the state can claim the estate. If you have young children, a will can allow you to designate a guardian in the event of your death otherwise, a court can appoint a guardian. EOAW

22
Q

What is needed in a will

A 
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
WINIAW
23
Q

Executing the Will

A

The 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. The executor typically opens a bank account for this purpose.

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

24
Q

How Long Will You Live

A

Americans, on average, live to 77.9 years old

25
Q

What are you most afraid of?

A 
Snakes
Creepy Crawlies
Scary Spaces
Other People
Heights
26
Q

Is a snake really scarier than dying?

A

No

27
Q

Why is dying a taboo subject to talk about?

A

Because death is a very emotional topic

28
Q

What is Estate Planning

A

A clear and complete plan of what should happen upon your death
WIEP

29
Q

Trade-Off

A

A trade-off is giving up one thing for another TO

30
Q

Guardianship

A

requires a legal document called a will G

31
Q

Estate

A

the assets of a deceased person after all debts are paid. It is used to determine how your wealth will be allocated on or before death. The Will is used to identify a guardian for surviving children under 18 and to determine how the estate is to be distributed upon death to beneficiaries or heirs. In the event there is no will, the court appoints an administrator to make a decision on how the property is to be distributed. Estate planning is the process of planning or how your wealth will be allocated on or before your death. E

32
Q

Consequences of No Planning

A

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
CONP

33
Q

Estate Planning for Teens

A

Estate Planning for Teens
Letters are not legal documents
Letters are preferred over conversation because they have a longer presence
EPFT

34
Q

Who can help with planning

A 
Who can help with planning
Other professionals as needed
You & your family
Financial Institutions
Attorneys
WCHWP
35
Q

Attorneys

A

can provide you insights for titling documents, wills

AT

36
Q

Accountants

A

can help you determine net worth, see tax advantages

AC

37
Q

Certified Financial Planners

A

can help you diversify investments, protect assets

CFP

38
Q

Terms you may hear while dealing with an estate

A 
Living Will
Executor
Decedent
Beneficiary
Testator
Fiduciary
TYMHWDWAE
39
Q

Estate planning as a gift

A 
Teens are not too young to start
The first step is honest conversation
Seek out advice of professionals
Final act of financial well-being
EPAAG
40
Q

Giving through a will or trust

A

can provide for the future financial security of your family and others

41
Q

A will or living trust can offer

A

thoughtful charitable gifts as part of a long-range estate and financial plan

42
Q

A tax-free gift of up to $10,000 per year

A

can be given without being subjected to tax for giver or receiver

43
Q

A gift made through a will or living trust can

A

be prepared by an attorney

44
Q

Gifts included in wills and living trusts

A

are flexible, easy to arrange, and may be changed with your life circumstances

45
Q

What healthy giving do you observe in your community

A

People giving people stuff

46
Q

Prepare for giving

A 
Create a spending plan
Evaluate needs, wants and values
Assess your time
Plan for expenses, such as Christmas gifts
Avoid using credit for giving
47
Q

Money Management Tools

A

Statement of Financial Position
Income & Expense Statement
Spending Plan
MMT

48
Q

What other factors should be considered when deciding what and how to give to others

A

If you really want to give up what you are giving

49
Q

Financial Statements

A

Assess the overall financial position to evaluate pros & cons of giving
Creates a plan for special events that involve giving
FS

50
Q

Earning

A

Choose a career that can help you meet your giving goals
A career choice could be an ultimate form of giving
Be grateful to those that have given to your growth of human capital
EARN

Personal Finance (1 decks)

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