Book 6 Pages 1 - 61 Flashcards
the process of accumulation, management, conservation, and transfer of wealth, considering legal, tax, and personal objectives
estate planning
emotional issues such as ____ and ____ make estate planning difficult
control and affection
what are the costs associated with estate planning?
cost of professional guidance cost of probate cost of transfer taxes opportunity costs cost of documents
estate planning objectives should include the ____ and ____ transfer of assets
efficient and effective
the efficient transfer of assets refers to ____
minimizing costs
the effective transfer of assets refers to ____
assets go to the desired beneficiary
when someone dies without a valid will
intestate
true or false?
when intestate occurs, the assets may not transfer to the desired beneficiary
true
a legal document that enables the testator (maker) to transfer property at the testator’s death in the manner the testator desires
will
what are some advantages of a will?
can name an executor can transfer property to anyone desired can specify how estate taxes are apportioned can designate guardians for minors can name charitable beneficiaries
when a person dies without a will (intestate), who directs how the decedent’s property will be distributed?
the probate court based off state laws
true or false?
in some states, a spouse’s share of the decedent’s estate will be equal to a child’s share. Example if 9 kids then each kid would get 1/10 and the spouse would get 1/10
true
true or false?
if intestacy occurs, assets will still be left to charity
false
the person making a will must be ___ years old or older
18
the person making the will must be of sound mind, also known as_____
testamentary capacity
the person making the will must have absence of ______
undue influence
_____ is present when someone, such as a trusted advisor, friend, or family member, influences the testator to include provisions in the will the testator would not have included otherwise
undue influence
true or false?
the absence of fraud is required for a will to be valid
true
the person making the will must:
understand the ____ of the act of making a will
understand the general nature of the will-maker’s ____
have the ____ to remember and ____ the nature of the ____ to the persons affected
nature ; property ; ability ; understand; relationship
a handwritten will
holographic will
true or false?
holographic wills are recognized in all states
false
do holographic wills need to be witnessed?
false
a dying declaration before sufficient witnesses
nuncupative will
true or false?
noncupative wills are recognized in all states
false