Giving notes flashcards

Question 1

Healthy giving

Answer 1

when you want to give back and the result is positive emotions; giving out of excess in your life

Question 2

Unhealthy giving

Answer 2

when giving is a method of gaining power over another; does not enhance well-being of both giver and receiver

Question 3

Two ways to prepare for giving

Answer 3

create a spending plan and evaluate needs, wants and values

Question 4

Giving

Answer 4

the transfer of something without the expectation of something in return

Question 5

Specific gifts

Answer 5

particular item or property in an estate transferred to beneficiary on owner’s death

Question 6

Non-specific gifts

Answer 6

does not refer to specific item

Question 7

Residuary gifts

Answer 7

everything left in estate after all debts, bills and taxes have been paid and specific and non specific gifts have been distributed

Question 8

Gifts to children

Answer 8

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 children’s behalf

Question 9

Gifts to charities

Answer 9

Gifts left to charity in will are free from inheritance tax

Question 10

A will or living trust

Answer 10

can offer thoughtful charitable gifts as part of a long-range estate and financial plan

Question 11

Tax-free gift

Answer 11

up to $10,000 per year can be given without being subjected to tax for giver or receiver

Question 12

trust

Answer 12

an agreement that determines how a person’s property is to be managed and distributed during lifetime and upon death

Question 13

grantor

Answer 13

person who forms the trust and supplies the assets

Question 14

trustee

Answer 14

person named in the trust to administer the trust according to the terms and state trust law

Question 15

beneficiary

Answer 15

the person for whose benefit the trust property is held by the trustee

Question 16

intent from grantor

Answer 16

must have a valid legal purpose

Question 17

property

Answer 17

assets subject to the trust

Question 18

testamentary trust will

Answer 18

a will that sets up one or more trusts from some of the estate assets to be distributed upon the grantor’s death.

Question 19

testator

Answer 19

someone who creates a testamentary trust in a will and bequeaths his/her property to beneficiaries

Question 20

Living trust

Answer 20

trust in which you assign the management of your assets to a trustee while you are living

Question 21

Revocable living trust

Answer 21

living trust that can be dissolved

Question 22

Irrevocable living trust

Answer 22

living trust that cannot be changed, although it can provide income to the grantor

Question 23

Will

Answer 23

a legal document by a person, the testator, the names of one or more persons, executor, to manage his or her estate and provides for the distribution of property upon death.

Question 24

Purpose of a will

Answer 24

ensures the estate is distributed as desired, the persons specified in the will receives a part of an estate, prevent the courts from assigning an administrator who may not carry out your wishes

Question 25

Codicil

Answer 25

a document that specifies changes in an existing will must be prepared to make minor revisions

Question 26

Power of attorney

Answer 26

legal document granting a person the power to make decisions

Question 27

Living Will

Answer 27

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

Question 28

Oral Will

Answer 28

spoken testaments given before witnesses

Question 29

Testamentary Will

Answer 29

formally prepared document signed in the presence of witnesses

Question 30

Holographic Will

Answer 30

written without the presence of witness

Question 31

Elements of a Will

Answer 31

name and place of residence, description of assets, names of spouse, children and other beneficiaries etc.

Question 32

Probate

Answer 32

a legal process that declares a will valid and ensures the orderly distribution of assets

Question 33

Estate planning

Answer 33

providing a clear and complete

plan for what should happen upon the death of an individual and is based on an individual’s values

Question 34

A letter of last instruction

Answer 34

a means of communication because writing has a

longer lasting presence and would have more weight in a conflict

Question 35

Guardianship

Answer 35

established by a legal document called a will

Question 36

Estate

Answer 36

the assets of a deceased person after all debts are paid

Question 37

Primary functions of estate

Answer 37

Peace of Mind, Maintain Control, Protect Assets for Yourself and Loved Ones, Estate Taxes, Creditors, Special Needs, Avoid Probate

Question 38

Consequences of no planning

Answer 38

May need a guardianship, Medical wishes may not be carried out, State Law via a public probate process decides who receives your assests and in what proportions

Question 39

Estate taxes

Answer 39

Without a surviving spouse, a large estate is subject to estate taxes

Question 40

Value of estate

Answer 40

the value of all assets minus any liabilities minus funeral and administrative expenses