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personal finance Flashcards

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1
Q

Specific Gifts

A

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

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2
Q

Non Specific Gifts

A

does not refer to specific item. (all my personal possessions)

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3
Q

Residuary gifts

A

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

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4
Q

Gifts to children

A

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

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5
Q

Gifts to charities

A

Gifts left to charity in will are free from inheritance tax

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6
Q

What does a will do?

A

provide for the future financial security of your family and others.

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7
Q

Gifts in willls are….

A

flexible, easy to arrange, and may be changed with your life circumstances

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8
Q

Does a living will have anything to do with where your assets go?

A

no

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9
Q

What is a living will?

A

It is a medical document that tells doctors and family members what kind of care you want if you become incapacitated and cannot express wishes.

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10
Q

How does a living revocable trust make getting money to beneficiaries faster?

A

This makes it easier to get money to your beneficiaries without going through probate court, which can take between 6 months and two years.

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11
Q

Grantor

A

person who forms the trust and supplies the assets

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12
Q

Trustee

A

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

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13
Q

beneficiary

A

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

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14
Q

intent from grantor

A

must have a valid legal purpose

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15
Q

property

A

asses subject to the trust

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16
Q

Can a trust be revocable?

A

yes

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17
Q

Who creates the testamentary?

A

Created in the will of the testator.

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18
Q

What does the testamentary trust do?

A

This trust allows the testator to control how the property will be divided.

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19
Q

Living trust

A

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

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20
Q

Irrevocable living trust

A

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

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21
Q

Revocable Living Trust

A

Living trust that can be dissolved.

22
Q

What are the purposes of a will?

A
  • Ensures the estate is distributed as desired
  • Beneficiaries (heirs), the persons specified in will receives a part of an estate
  • To prevent the courts from assigning an administrator who may not carry out your wishes.
23
Q

Oral Will

A

spoken testaments given before witnesses. Not widely recognized from a legal perspective

24
Q

Testamentary Will

A

formally prepared document signed in the presence of witnesses.

25
Q

Holographic Will

A

written without the presence of witness. Rarely hold up in court.

26
Q

What are the elements of a will?

A 
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
27
Q

What is a probate?

A

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

28
Q

What is Estate Planning?

A

A clear and complete plan of what should happen upon your death

29
Q

Trade-off

A

A trade-off is giving up one thing for another.

30
Q

Guardianship

A

requires a legal document called a will.

31
Q

Will

A

is 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.

32
Q

Attorneys

A

can provide you insights for titling documents, wills, etc…

33
Q

Accountants

A

can help you determine net worth, see tax advantages

34
Q

Certified Financial Planners

A

can help you diversify investments, protect assets

35
Q

Estate

A

An estate is the assets of a deceased person after all debts are paid.

36
Q

Codicil

A

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

37
Q

Who can write a will?

A

A Will can be written by any person of legal age and being of sound mind and memory.

38
Q

How can the state claim your estate?

A

If you have no heirs and die without a will, the state can claim the estate.

39
Q

Can a guardian be assigned in a will?

A

yes

40
Q

Who prepares the gifts and money?

A

Attorney

41
Q

What happens to your money if you have insurance trust?

A

It goes into the trust, not the estate.

42
Q

What happens if you don’t get the incapacity clause with living revocable trust?

A

the government and lawyers could be getting the money that should be going to your loved ones.

43
Q

What is better, living revocable trust or a holographic will?

A

living revocable trust

44
Q

If you cannot agree on guardianship for your child what happens?

A

If you cannot agree on guardianship for your child, you will be leaving that decision to the state.

45
Q

How long can probate court take?

A

between 6 months and two years.

46
Q

What can estate planning do?

A

strengthen family
relationships, leave a legacy of care and good will, and
reduce the frustration, worry, some utlity and monetary cost incurred by survivors who struggle to settle an estate.

47
Q

Can a child under the age of 18 create a will?

A

not in most states

48
Q

A letter of last instruction

A

would be
preferred as a means of communication because writing has a
longer lasting presence and would have more weight in a conflict

49
Q

Beneficiaries are also known as..

A

heirs

50
Q

Why would the executor open the bank account?

A

The executor files forms in probate court, provides a copy of the will, a list of assets and liabilities of deceased, pays debts and sells necessary assets.

personal finance (1 decks)

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