review Flashcards
Specific Gift
particular item or property in an estate transferred to beneficiary on owner’s death.
Specifics must be provided.
Non-Specific gifts
does not refer to specific item
residuary gifts
everything left in estate after all debts, bills and taxes 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 dissolve
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, will, etc
accountants
can help you determine net worth, see tax advantages
certified financial planners
can help you diversify investments protect
estate
the assets of deceased person after all debts are paid
fraud
an international effort to deceive another individual for personal gain
identity theft
when another’s personal information is used without their permission
communications
occurs via mass marketing, mail, wire, telephone, internet, etc. to deceitfully get money from people
credit
applying for and modifying credit
investment
investors are deceived by individuals claiming to be financial advisors or have an investment guaranteed too make money
tax
scammers making claims that a person may be exempt from paying taxes
healthy giving
giving out of excess in your life
unhealthy giving
does not enhance the well-being of both the receiver and giver
trade-offs
giving up one thing for another
forms of giving
being king to another, knowledge, money, skill, talent, items
preparing to give
create a spending plan, evaluate needs/ wants and values, assess your time, plan for expenses, such as Christmas gifts, avoid using credit for giving
money management tools
statement of financial position, income and expense statement, spending plan
decision making with giving
values, money, time, needs, wants, finances
Determining estate taxes
value of estate is the value of all assets minus any liabilities minus funeral and administrative expenses.
Consequences of No Planning
May need a guardianship, medical wishes may not be carried out, state law via a public probate process decides who receives your assets and in what proportions, court decides who raises you minor children, heirs may unnecessarily incur estate taxes
Estate Primary Functions
Peace of Mind, Maintain control, protect assets for yourself and loved ones
Estate planning
a clear and complete plan of what should happen upon your death
