Review 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
Assets subject to the trust
Trust
Can be revocable, revoked or modified at any time or irrevocable, not modified or revoked unless by special permission of court to terminate it.
Testamentary Trust
Will sets up one or more trusts for some of the estate assets to be distributed upon the grantor’s death.
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
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.
Testament
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.
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.
Probate
a legal process that declares a will valid and ensures the orderly distribution of assets.
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.
Executor
typically opens a bank account for this purpose.
Trade-off
giving up one thing for another.
Guardianship
requires a legal document called a will.
Will
Determines guardians, money flow otherwise determined by court.
Attorneys
provide you insights for titling documents, wills, etc…
Accountants
help you determine net worth, see tax advantages
Certified Financial Planners
help you diversify investments, protect assets
Healthy giving
When you want to give back or pay it forward and the result is positive emotions
Unhealthy giving
When giving is a method of gaining power over another
Prepare for giving
Create a spending plan, Evaluate needs, wants and values, Assess your time, Plan for expenses, such as Christmas gifts, Avoid using credit for giving.
Giving throughout the life cycle
When someone passes on, their estate plan identifies how their assets will be given to individuals and/or community organizations
Earning
Choose a career that can help you meet your giving goals, A career choice could be an ultimate form of giving, Be grateful to those that have given to your growth of human capital
Financial statements
Assess the overall financial position to evaluate pros & cons of giving ,Creates a plan for special events that involve giving
Savings and Investing
Emergency savings should be established prior to giving ,Savings and investing are valuable avenues to give
Risk management
Ensure you have planned for life events and accounted for such expenses prior to giving
Forms of giving
Knowledge, money, skill, talent, items
Money management tools
Statement of Financial Position, Income and Expense Statement, Spending Plan
Decision making with giving
Values, Money, Time, Needs, Wants, Finances
