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Personal Finance > Personal Finance Cards > Flashcards

Personal Finance Cards Flashcards

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1
Q

Specific Gifts

A

particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelery, etc.)

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2
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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3
Q

Grantor

A

person who forms the trust and supplies the assets

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4
Q

Trustee

A

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

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5
Q

Beneficiary

A

The person for whose benefit the trust property id held by the trustee

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6
Q

Intent from Grantor

A

must have a valid legal purpose

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7
Q

Property

A

assets subject to the trust

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8
Q

Testamentary Trust

A

Created in a will by a testator who bequeaths his/her property to beneficiaries

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9
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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10
Q

Revocable Living Trust

A

living trust that can be dissolved

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11
Q

Irrevocable Living Trust

A

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

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12
Q

Will/Testament

A

A legal document by a person that names one or more persons to manage his/her estate and provides distribution of property upon death

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13
Q

Purpose of a Will

A

Ensures the estate is distributed as desired

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14
Q

A 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 unconcious

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15
Q

Oral Will

A

Spoken testaments given before witnesses. Not widely recognized

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16
Q

Testamentary Will

A

Formally prepared document signed in the presence of witnesses

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17
Q

Holographic Will

A

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

18
Q

3 Elements of a Will

A

Name of spouse, children, and other beneficiaries
Signature
Name of executor to manage the estate

19
Q

Probate

A

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

20
Q

Estate

A

the assets of a deceased person after all debts are paid off

21
Q

What happens if there is no will?

A

The court appoints an administrator to make a decision on how the property is distributed

22
Q

Estate Planning

A

The process of planning or how your wealth will me allocated on or before your death

23
Q

What are the primary functions of an estate?

A

Peace of Mind
Maintain Control
Protect Assets for Loved Ones

24
Q

What are two consequences of not planning your will?

A

Medical wishes may not be carried out

The court decides who raises your minor children

25
Q

What happens if there is no surviving spouse?

A

A large estate is subject to estate taxes

26
Q

How do you determine estate taxes?

A

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

27
Q

2001

A

estates with value over $675,000 are subject to federal taxes of 37%-50%

28
Q

Tax Relief Act

A

Gradually increased tax free limit while reducing a maximum tax rate

29
Q

Positive outcome of estate planning is…

A

You provide for loved ones after you are gone

30
Q

Trade-off

A

Giving up one thing for another

31
Q

What age must you be to make in order to estate plan?

A

18

32
Q

Guardianship

A

Taking ownership of minor child/children

33
Q

Who helps with planning?

A

CPA & CFP, financial institutions, Attorneys, and loved ones

34
Q

Healthy Giving

A

giving out of excess in your life

35
Q

Unhealthy Giving

A

When giving is a method of gaining power over another

36
Q

What factors should be considered when deciding how and what to give to others?

A

Values, Money, Needs, Time, Wants, and Finances

37
Q

Forms of Giving:

A

Money, kindness, talent, skill, items, and knowledge

38
Q

“we make a living by what we earn, we make a life by what we give”

A

Winston Churchill

39
Q

Attorneys

A

Provide you with insights for titling documents, wills, etc

40
Q

Accountants

A

Help you determine net worth and see tax advantages

Personal Finance (1 decks)

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