Giving notes flashcards
Healthy giving
when you want to give back and the result is positive emotions; giving out of excess in your life
Unhealthy giving
when giving is a method of gaining power over another; does not enhance well-being of both giver and receiver
Two ways to prepare for giving
create a spending plan and evaluate needs, wants and values
Giving
the transfer of something without the expectation of something in return
Specific gifts
particular item or property in an estate transferred to beneficiary on owner’s death
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 children’s behalf
Gifts to charities
Gifts left to charity in will are free from inheritance tax
A will or living trust
can offer thoughtful charitable gifts as part of a long-range estate and financial plan
Tax-free gift
up to $10,000 per year can be given without being subjected to tax for giver or receiver
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
assets subject to the trust
testamentary trust will
a will that sets up one or more trusts from some of the estate assets to be distributed upon the grantor’s death.
testator
someone who creates a testamentary trust in a will and bequeaths his/her property to beneficiaries
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
Will
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.
Purpose of a will
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
Codicil
a document that specifies changes in an existing will must be prepared to make minor revisions
Power of attorney
legal document granting a person the power to make decisions
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
Testamentary Will
formally prepared document signed in the presence of witnesses
Holographic Will
written without the presence of witness
Elements of a Will
name and place of residence, description of assets, names of spouse, children and other beneficiaries etc.
Probate
a legal process that declares a will valid and ensures the orderly distribution of assets
Estate planning
providing a clear and complete
plan for what should happen upon the death of an individual and is based on an individual’s values
A letter of last instruction
a means of communication because writing has a
longer lasting presence and would have more weight in a conflict
Guardianship
established by a legal document called a will
Estate
the assets of a deceased person after all debts are paid
Primary functions of estate
Peace of Mind, Maintain Control, Protect Assets for Yourself and Loved Ones, Estate Taxes, Creditors, Special Needs, Avoid Probate
Consequences of no planning
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
Estate taxes
Without a surviving spouse, a large estate is subject to estate taxes
Value of estate
the value of all assets minus any liabilities minus funeral and administrative expenses
