Review Flashcards
what are the forms of giving?
knowledge, money, skill, talent, items
What is healthy giving?
giving out of excess in your life
What is unhealthy giving?
does not enhance the well-being of both the receiver and giver
Specific gifts
particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelry, 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 management of your assets
Purpose of will
Ensures the estate is distributed as desired
Beneficiaries (heirs), the persons specified in will receives a part of an estate
T prevent the courts from assigning an administrator who may not carry out your wishes.
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.
Executing the Will
The 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. The executor typically opens a bank account for this purpose.
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
how long do Americans live?
77.9
what is estate planning?
a clear and complete plan of what should happen upon your death.
