Giving Flashcards
particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelery, etc.)
Specific gifts
does not refer to specific item. (all my personal possessions)
Non-specific gifts
everything left in estate after all debts, bills and taxes have been paid and specific and non specific gifts have been distributed
Residuary gifts
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 children
Gifts left to charity in will are free from inheritance tax.
Gifts to charities
person who forms the trust and supplies the assets
grantor
person named in the trust to administer the trust according to the terms and state trust law
trustee
the person for whose benefit the trust property is held by the trustee
beneficiary
must have a valid legal purpose
intent from grantor
asses subject to the trust
property
trust in which you assign the management of your assets to a trustee while you are living
living trust
living trust that can be dissolved
revocable living trust
living trust that cannot be changed, although it can provide income to the grantor
irrevocable living trust
a 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
will/testament
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.
a living will
spoken testaments given before witnesses. Not widely recognized from a legal perspective
Oral Will
formally prepared document signed in the presence of witnesses.
Testamentary Will
written without the presence of witness. Rarely hold up in court.
Holographic Will
the assets of a deceased person after all debts are paid.
estate
- May need a guardianship
- Medical wishes may not be carried out
- State Law via a public probate process decides who receives your assets and in what proportions
- Court decides who raises your minor children
- Heirs may unnecessarily incur estate taxes
Consequences of No Planning
giving out access in your life
healthy giving
when giving is a method of gaining power over another
unhealthy giving
creates a plan for special events that involve giving
financial statements
be grateful to those that have given to your growth of human capital
earning
_______ and _______ are valuable avenues to give
saving/investing
ensure you have planned for life events and accounted for such expenses prior to giving
risk management
you are better off in a ____ than by ___
community/yourself
your ____ self impacts you _____ self
present/future
you are responsible for your _____ and _____ self
present and future
Gifts included in wills and living trusts are _____, easy to arrange, and may be ____ with your life circumstances.
flexible/changed
sets up one or more trusts for some of the estate assets to be distributed upon the grantor’s death
testamentary trust will
- name and place of residence
- description of assets
- names of spouse, children and other beneficiaries
- alternate beneficiaries
- specific gifts
- establishment of trust if desired
- cancellation of debts owed to you
- name of executor to manage the estate
- name of guardian for minor children
- name of alternative guardian
- your signature
- witnesses’ signatures
elements of a will
A Will can be written by any person of ___ age and being of sound mind and memory
legal
Purpose of a Will
- Ensures the estate is distributed as desired
- Beneficiaries (heirs), the persons specified in will receives a part of an estate
- prevents the courts from assigning an administrator who may not carry out your wishes.
a legal process that declares a will valid and ensures the orderly distribution of assets.
probate
giving up one thing for another
trade offs
requires a legal document called a will
Guardianship
can provide you insights for titling documents, wills, etc
Attorneys
can help you determine net worth, see tax advantages
Accountants
can help you diversify investments, protect assets
Certified Financial Planners
