finance Flashcards
Specific gifts
particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided
Non-specific gifts
does not refer to specific item
Residuary gifts
everything left in estate after all debts, bills and taxes have been paid and specific and non specific gifts have been distributed
Gifts to children
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
Gifts to charities
Gifts left to charity in will are free from inheritance tax.
grantor
person who forms the trust and supplies the assets
trustee
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
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
irrevocable living trust
living trust that cannot be changed although it can provide income to the grantor
A Living Will
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
Oral Will
spoken testaments given before witnesses. Not widely recognized from a legal perspective
Testamentary Will
formally prepared document signed in the presence of witnesses.
Holographic Will
written without the presence of witness. Rarely hold up in court.
Living Will
A plan to care for someone who is young or incapacitated and cannot care for themselves
Estate Planning
A clear and complete plan of what should happen upon your death
Trade-Offs
A trade-off is giving up one thing for another.
Guardianship
requires a legal document called a will.
