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.
Will
determines guardians, money flow otherwise determined by court
Attorneys
can provide you insights for titling documents, wills
Accountants
can help you determine net worth, see tax advantages
Certified Financial Planners
can help you diversify investments, protect assets
Savings & Investing
Emergency savings should be established prior to giving
Savings & Investing
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
Financial Statements
Creates a plan for special events that involve giving
Financial Statements
Assess the overall financial position to evaluate pros & cons of giving
Earning
Choose a career that can help you meet your giving goals
Earning
A career choice could be an ultimate form of giving
Earning
Be grateful to those that have given to your growth of human capital
Money Management Tools
What is my financial position today?
Statement of Financial Position
Money Management Tools
How have I managed my
money in the past?
Income & Expense Statement
Money Management Tools
What is my future money management plan?
Spending Plan
Prepare for giving
Create a spending plan
Prepare for giving
Evaluate needs, wants and values
Prepare for giving
Assess your time
Prepare for giving
Plan for expenses, such as Christmas gifts
Prepare for giving
Avoid using credit for giving
Healthy Giving
Giving out of excess in your life
Healthy Giving
When you want to give back or pay it forward and the result is positive emotions
Unhealthy Giving
Does not enhance the well-being of both the receiver and giver.
Unhealthy Giving
When giving is a method of gaining power over another.
Financial Statements
Assess the overall financial position to evaluate pros & cons of giving
Financial Statements
Creates a plan for special events that involve giving
Earning
Choose a career that can help you meet your giving goals
Earning
A career choice could be an ultimate form of giving
Earning
an ultimate form of giving
Be grateful to those that have given to your growth of human capital
estate
the assets of a decease person after all their debts are paide
