AFC Module 29 - Estate Planning

Question 1

Advance Directive (living will)

Answer 1

A written statement detailing a person’s desires regarding their medical treatment in circumstances in which they are no longer able to express informed consent.

Question 2

Beneficiary

Answer 2

A person who is granted control over an asset upon the death of its original owner.

Question 3

Executor

Answer 3

An individual who handles the administration of an estate.

Question 4

General Durable Power of Attorney

Answer 4

A document that gives a caregiver permission in advance to act as the agent of another individual on financial and property issues in the event she is unable to do so.

Question 5

Guardianship

Answer 5

The position of being legally responsible for the care of someone who is unable to manage their own affairs.

Question 6

Health Care Proxy

Answer 6

A document with which a patient appoints an agent to legally make healthcare decisions on behalf of the patient when he or she is incapable of making and executing the healthcare decisions stipulated in the proxy.

Question 7

Intestate

Answer 7

The condition when a person dies without a will.

Question 8

Irrevocable life insurance trust (ILIT)

Answer 8

A trust that eliminates the value of the insurance policy proceeds (death benefits) from the client’s taxable estate at the time of death.

Question 9

Probate

Answer 9

The legal process through which a deceased person’s estate is properly distributed to heirs and designated beneficiaries and any debt owed to creditors is paid off.

Question 10

Revocable Living Trust

Answer 10

A trust that holds property during a person’s lifetime and allows the client to maintain control over her assets but avoid probate or conservatorship issues.

Question 11

WILL

Answer 11

A document by which a client can give away her assets at death in the way she wants and is appropriate for her beneficiaries.

Question 12

Martindale-Hubbell Law Dictionary

Answer 12

Provides detailed information about law firms and their lawyers. It includes basic practice profile data and detailed professional lawyer biographies. It also includes peer review ratings.

Question 13

Residuary Clause

Answer 13

Addresses everything in a will through a clause that was not specifically named in the will.

Question 14

Big Three (3) Estate Planning Documents

Answer 14

1. A will
2. A general durable power of attorney
3. A Living Will (Advance Directive)