Flashcards 1
Specific gifts
particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelery, etc.)
Non-specific gifts
does not refer to specific item. (all my personal possessions)
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
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.
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, etc…
Accountants
can help you determine net worth, see tax advantages
Certified Financial Planners
can help you diversify investments, protect assets
Estate Planning
A clear and complete plan of what should happen upon your death
Healthy Giving
giving out of excess in your life
Unhealthy Giving
does not enhance the well-being of both the receiver and giver
Money Management tool
Statement of Financial Position
Money Management tool
Income and Expense Statement
Money Management tool
Spending Plan
Financial Statements
assess the overall financial position to evaluate pros and 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
be grateful to those that have given to your growth of human capital
Savings and Earnings
emergency savings should be established prior to giving
Savings and 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
Risk
chance of loss from an event that cannot be entirely controlled
Insurance
a financial product purchased by many people facing a similar risk to protect against the risk of larger losses
Policy
A contract between the insurance company and the insured that states the exact terms of the policy
Coverage
The risks covered and amount of money paid for losses under an insurance policy
Premium
Money paid to purchase the policy
Claim
a formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury
Deductible
the out-of-pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss
Co-insurance
requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid
Employee benefits
products or services that add extra value for employees beyond earned wages
Health Insurance
provides money to pay for health care
Disability Insurance
Provided by employers, individuals, and/or government
Long-term care insurance
Provided by individuals
Property Insurance
payment to insured person if his/her property is damaged or destroyed by an accident
