Chapter 10 Trusts

Question 0

Probate

Answer 0

Is a court proceeding that settles and estates final debts and formally passes legal title to property from the decedent to his or her heirs.

Question 1

Living trust

Answer 1

Is a legal document that provides an expert way to transfer property at a person’s death

Question 2

Will

Answer 2

A document by which the individual instruction as to what to happen upon his or her death in regard to property and remains

Question 3

estate

Answer 3

Is the total property Real estate and personal all of the possessions such as automobiles jewelries and bank accounts that an individual owns

Question 4

Variable annuity

Answer 4

Combines the opportunity for tax-deferral with a choice of portfolios and the flexibility to bury annual contributions according to the investors need or market condition

Question 5

401K plan

Answer 5

Allows employees to make text deferred contributions to a trust and direct their funds to be invested variety of choices getting their money back at departure or retirement

Question 6

IRA individual retirement account

Answer 6

Is a great way to save for retirement there are two kinds of IRA’s traditional and Roth

Question 7

Trust

Answer 7

Is an arrangement by which one party holds property on behalf of another party for certain to find purposes

Question 8

Donor

Answer 8

Or settlor is the person who creates a trust

Question 9

Beneficiary

Answer 9

Is the person for whose benefit the property is held

Question 10

Corpus

Answer 10

Or red refers to the property that is held sometimes a distinction is made as to the principle which is the property that is held in trust and the income that the principal produces