Estate Planning Personal Finance 50

Question 1

Specific gifts

Answer 1

particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelery, etc.)

Question 2

Non-specific gifts

Answer 2

does not refer to specific item. (all my personal possessions)

Question 3

Residuary gifts

Answer 3

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

Question 4

Gifts to children

Answer 4

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

Question 5

Gifts to charities

Answer 5

Gifts left to charity in will are free from inheritance tax

Question 6

grantor

Answer 6

person who forms the trust and supplies the assets

Question 7

trustee

Answer 7

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

Question 8

beneficiary

Answer 8

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

Question 9

intent from grantor

Answer 9

must have a valid legal purpose

Question 10

property

Answer 10

asses subject to the trust

Question 11

Revocable living trust

Answer 11

living trust that can be dissolved

Question 12

Living trust

Answer 12

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

Question 13

Irrevocable living trust

Answer 13

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

Question 14

Will

Answer 14

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.

Question 15

A Living Will

Answer 15

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.

Question 16

Oral Will

Answer 16

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

Question 17

Testamentary Will

Answer 17

formally prepared document signed in the presence of witnesses.

Question 18

Holographic Will

Answer 18

written with the presence of witness. Rarely old up in court