Review

Question 1

grantor

Answer 1

person who forms the trust and supplies the assets

Question 2

trustee

Answer 2

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

Question 3

beneficiary

Answer 3

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

Question 4

intent from grantor

Answer 4

must have a valid legal purpose

Question 5

property

Answer 5

assets subject to the trust

Question 6

trust

Answer 6

an agreement that determines how a person’s property is to be managed and distributed during lifetime and upon death

Question 7

testamentary trust

Answer 7

set up one or more trusts for some of the assets to be distributed upon the grantor’s death; this trust allows the testator to control how the property will be divided

Question 8

specific gifts

Answer 8

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

Question 9

non-specific gifts

Answer 9

does not refer to specific item

Question 10

residuary gifts

Answer 10

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

Question 11

gifts to children

Answer 11

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

Question 12

gifts to charities

Answer 12

gifts left to charity in will are free from inheritance tax

Question 13

living trust

Answer 13

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

Question 14

revocable living trust

Answer 14

living trust can be dissolved

Question 15

irrevocable living trust

Answer 15

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

Question 16

will or testament

Answer 16

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

Question 17

a living will

Answer 17

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

Question 18

oral will

Answer 18

spoken testaments given before witnesses; not widely recognized from a legal perspective

Question 19

testamentary will

Answer 19

formally prepared document signed in the presence of witnesses

Question 20

holographic will

Answer 20

written without the presence of witness.; rarely hold up in court

Question 21

probate

Answer 21

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

Question 22

estate planning

Answer 22

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

Question 23

trade-offs

Answer 23

giving up one thing for another

Question 24

guardianship

Answer 24

requires a legal document called a will

Question 25

attorneys

Answer 25

provide you insights for tilting documents, wills, etc.

Question 26

accountants

Answer 26

help you determine net worth, see tax advantages

Question 27

certified financial planners

Answer 27

help you diversity investments, protect assets

Question 28

estate

Answer 28

the assets of a deceased person after all debts are paid

Question 29

forms of giving

Answer 29

being kind to another, knowledge, money, skill, talent, items

Question 30

healthy giving

Answer 30

giving out of excess in your life; when you want to give back or pay it forward and the result is positive emotions

Question 31

unhealthy giving

Answer 31

does not enhance the well-being of both the receiver and the giver; when giving is a method of gaining power over another

Question 32

prepare for giving

Answer 32

create a spending a plan, evaluate needs, wants, and values, assess your time, plan for expenses, such as Christmas gifts, avoid using credit for giving

Question 33

factors when considering giving to others

Answer 33

values, money, time, needs, wants, finances

Question 34

financial statements

Answer 34

assess the overall financial position to evaluate pros & cons of giving; creates a plan for special events that involve giving

Question 35

earnings

Answer 35

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

Question 36

savings and investment

Answer 36

emergency savings should be established prior to giving; savings and investing are valuable avenues to give

Question 37

risk management

Answer 37

ensure you have planned for life events and accounted for such expenses prior to giving

Question 38

true/ false

Answer 38

you are better of alone than with a community

Question 39

fill in the blank(s)

Answer 39

you ____ self impacts your ____ self

Question 40

true/ false

Answer 40

you are responsible for your present self and your future self

Question 41

true/ false

Answer 41

investment helps manage risk and allows you to cope with rick and uncertainty