Estate Planning Flashcards
Americans on average live up to
77.9 years old
Estate Planning is
A clear and complete plan of what should happen upon your death
Living well means
A plan to care for someone who is young or incapacitated and cannot care for themselves
Positive outcome 1
Provide for loved ones after you’re gone
Positive outcome 2
Strengthen family relationships by giving them a path for them to follow
Positive outcome 3
Reduce time, effort and costs for survivors
Positive outcome 4
Leaves a legacy to family, organizations, institutions
Trade Off
Giving up one thing for another
How old must you be to start your estate planning in most states
18 years old
Gaurdianship
Requires a legal document called a will
Will
Determines guardians, money flow otherwise determined by court
Attorneys
Can provide you insights for titling documents, wills, etc
Accountants
Can help you determine net worth, see tax advantages
Certified Financial Planners
Can help you diversify investments, protect assets
Living Trust
trust in which you assign the management of your assets to a trustee while you are living
Revocable living trust
living trust that can be dissolved
Irrecoverable living trust
living trust that cannot be changed, although it can provide income to the grantor
Living will
a document to inform your family of the type of care you want to receive if you become terminally ill
Oral will
spoken testaments given before witnesses
Testamentary will
formally prepared document signed in the presence of witnesses
Holographic will
written without the presence of witness. Rarely hold up in court
Healthy Giving
Giving out excess in your life
Unhealthy Giving
Does not enhance the well being of both the receiver and giver
Prepare for giving step 1
create a spending plan
Prepare for giving step 2
Evaluate needs, wants and values
Prepare for giving step 3
Assess your time
Prepare for giving step 4
Plan for expenses
Prepare for giving step 5
Avoid using credit fro giving
Financial statements
Assess the overall financial position to evaluate pros and cons of giving and creates a plan for special events that involve giving
Earning
Choose a career that can help you meet your giving goals
Saving and Investing
Emergency savings should be established prior to giving and savings and investing are valuable avenues to give
Risk Management
Ensure you have planned for life events and accounted for such expenses prior to giving
You are better off in a community than by
yourself
your present self impacts your
future self
You are responsible for your present self and your
future self
Investments helps manage risk and allows you to cope with
risk and uncertainty
Grantor
A person who forms the trust and supplies and assets
Trustee
A person named in the trust to administer the trust according to the terms and state trust law
Beneficiary
The person for whose benefit the trust property is held by the trustee
Intent from Grantor
Must have a valid legal purpose
Property
Asses subject to the trust
Estate
The assets of a deceased person after all debts are paid
