PF Flashcards
Specific gifts
particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelery, etc.)
Non-specific gifts
does not refer to specific item. (all my personal possessions)
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.
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
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
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 unconscious. This document is only effective in the event you are unable to express your wishes yourself.
Oral Will
spoken testaments given before witnesses. Not widely recognized from a legal perspective
Testamentary Will
formally prepared document signed in the presence of witnesses.
Holographic Will
written without the presence of witness. Rarely hold up in court.
Guardianship
requires a legal document called a will.
Will
determines guardians, money flow otherwise determined by court
Attorneys
can provide you insights for titling documents, wills, etc…
Accountants
can help you determine net worth, see tax advantages
Certified Financial Planners
can help you diversify investments, protect assets
Living Will
A plan to care for someone who is young or incapacitated and cannot care for themselves
Trade-Offs
A trade-off is giving up one thing for another.
Healthy Giving
Giving out of excess in your life
Unhealthy Giving
Does not enhance the well-being of both the receiver and giver.
Financial Statements
Creates a plan for special events that involve giving
Financial Statements
Assess the overall financial position to evaluate pros & cons of giving
Earning
Be grateful to those that have given to your growth of human capital
Earning
A career choice could be an ultimate form of giving
Earning
Choose a career that can help you meet your giving goals
Savings & Investing
Savings and investing are valuable avenues to give
Savings & Investing
Emergency savings should be established prior to giving
Risk Management
Ensure you have planned for life events and accounted for such expenses prior to giving
Risk
chance of loss from an event that cannot be entirely controlled
Emergency savings
at least six months of expenses set aside to cover costs of unexpected expenses
Insurance
a financial product purchased by many people facing a similar risk to protect against the risk of larger losses
Policy
A contract between the insurance company and the insured that states the exact terms of the policy
Coverage
The risks covered and amount of money paid for losses under an insurance policy
Policyholder
Person who owns the insurance policy
Premium
Money paid to purchase the policy
Claim
a formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury
Deductible
the out-of-pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss
Co-insurance
requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid
Employee benefits
products or services that add extra value for employees beyond earned wages
In-kind income
the donation of a product or service in place of cash
Health insurance
provides money to pay for health care
Disability insurance
Payment to replace earnings during times when workers cannot work due to illness or injury
Long-term care insurance
Payment for extended nursing care when a person cannot live independently (but doesn’t need to be hospitalized)
Property insurance
payment to insured person if his/her property is damaged or destroyed by an accident
