Semester 1 PF Flashcards
Healthy Giving
A person who gives out their excess of his or her life.
Unhealthy Giving
People who do not have excess in his or her life.
Specific Gifts
Particular item or property in an estate transferred to beneficiary on owners death.
Non-Specific Gifts
does not refer to specific item
Residuary Gifts
everything left in an 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 a charity in will are free from inheritance tax.
Grantor
person who froms the trust and supplies the assests
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 dissolved
Irrevocable living trust
living trust that cannot be changed, although it can provide income to the grantor
Will/Testament
a legal document by a person, the testor, that names onr 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.
Oral Will
spoken testaments given before witnesses.
Testamentary Will
Formally prepared document signedin the presence of witnesses.
Holographic Will
written without the presence of witness
Guardianship
requires a legal document called a will.
Attorneys
can provide you insights for titling documents, wills, ect.
Accountants
can help you determine net worth, see tax advantages
Certified Financial Planners
can help you diversity investments, protect assets
Estate PLaning
involves providing a clear and complete plan fro what should happen upon the death of an individual and is based on an individual’s values.
Assets
Money and Property
Estate
The assets of a deceased person after all the debts are paid off.
Spending Plan
A way to manage your money
Expense
Something that takes something from you
Liquid
the ability to have you money easily at hand
Credit
You can use this to purchase items of your chosing
Forms of Giving
Knowledge, Money, Skill, Talent
Money Managment Tools
Statement of Financial Position, Income and Expense Statement, Spending plan.
Financial Statements
Creates a plan for special events that involve giving.
Earinings
Something that you receive after you have worked for it.
Savings and Investing
valuable avenues to give.
Rick management
Ensure you have planned for life events and accounted for such expenses prior to giving
trust
can be revoked at any time or irrevocable, not modified or revoked unless permission of court to terminate it.
Purpose of a Will
Ensures the estate is distributed as desired
Elements of a will
Name and place of residient, description of assets, names of spouse, children, and other beneficiaries, ect.
