Giving Flashcards
Giving
the transfer of something without the expectation of receiving something in return
Giving back
a form of gratitude
Specific gifts
particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided (house, jewelry, etc.)
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
Trust
an agreement that determines how a person’s property is to be managed and distributed during lifetime and upon death
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
Is a trust permanent?
can be revocable, revoked or modified at any time or irrevocable, not modified or revoked unless by special permission of court to terminate it
Living Trust
trust in which you assign the management of your assets to a trustee while you are still living
Revocable Living Trust
can be dissolved
Irrevocable Living Trust
cannot be terminated without court order
Will/Testament
a legal document made by a person that details the distribution of assets and/or specifies a guardian for the children
Benefit of creating a will
prevent the courts from assigning an administrator who may not carry out your wishes; you have control over what happens after you pass away
Living Will
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
Testamentary Will
formally prepared document signed in the presence of witnesses
Holographic Will
written without the presence of witness
Wills that aren’t recognized/don’t hold significance in court?
Oral and Holographic Wills
Elements of a 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
Probate
a legal process that declares a will valid and ensures the orderly distribution of assets (basically execution of the will)
Estate
the assets of a deceased person after all debts are paid
Pros of Estate Planning
peace of mind
maintain control
protect assets for yourself and loved ones
avoid sending your family to court
Cons of Not Estate Planning
court will appoint guardian for children
court will appoint someone to distribute assets
medical wishes may not be carried out
Who helps with estate planning?
attorneys, accountants, certified financial planners
Forms of Giving
being kind, knowledge, money, skill, talent, items
Healthy Giving
giving out of excess in your life; when you give, you’re receiving positive emotions
Unhealthy Giving
when giving is a method of gaining power over the receiver
How do you prepare for giving?
create a spending plan, assess your time, evaluate needs vs wants, avoid using credit for giving
Money Management Tools for Giving
Statement of Financial Position, Income & Expense Statement, Spending Plan
Factors to Consider When Giving
money, values, needs, wants, time
Risk Management with Giving
ensure you have planned for unexpected life events prior to giving
1st Rule of Financial Planning
You are better off in a community than by yourself
2nd Rule of Financial Planning
Your present self impacts your future self
3rd Rule of Financial Planning
You are responsible for you and your future self
How does career affect giving?
How much money you make will affect how much you give
