Review Flashcards
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
an agreement that determines how a person’s property is to be managed and distributed during lifetime and upon death
testamentary trust
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
specific gifts
particular item or property in an estate transferred to beneficiary on owner’s death
non-specific gifts
does not refer to specific item
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
living trust
trust in which you assign the management of your assets to a trustee while you are living
revocable living trust
living trust can be dissolved
irrevocable living trust
living trust that cannot be changed, although it can provide income to the grantor
will or testament
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
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
estate planning
a clear and complete plan of what should happen upon your death
trade-offs
giving up one thing for another
guardianship
requires a legal document called a will
attorneys
provide you insights for tilting documents, wills, etc.
accountants
help you determine net worth, see tax advantages
certified financial planners
help you diversity investments, protect assets
estate
the assets of a deceased person after all debts are paid
forms of giving
being kind to another, knowledge, money, skill, talent, items
healthy giving
giving out of excess in your life; when you want to give back or pay it forward and the result is positive emotions
unhealthy giving
does not enhance the well-being of both the receiver and the giver; when giving is a method of gaining power over another
prepare for giving
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
factors when considering giving to others
values, money, time, needs, wants, finances
financial statements
assess the overall financial position to evaluate pros & cons of giving; creates a plan for special events that involve giving
earnings
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
savings and investment
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
true/ false
you are better of alone than with a community
fill in the blank(s)
you ____ self impacts your ____ self
true/ false
you are responsible for your present self and your future self
true/ false
investment helps manage risk and allows you to cope with rick and uncertainty
