Terms

Question 1

Specific Gifts

Answer 1

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

Question 2

Non-specific gifts

Answer 2

does not refer to specific item

Question 3

Residuary Gifts

Answer 3

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

Question 4

Gifts to children

Answer 4

executors will keep for safekeeping gifts to children under 18 until they become of age unless will specifies guardian or parents take receipt

Question 5

Gifts to charities

Answer 5

gifts left to charity in will are free from inheritance tax

Question 6

grantor

Answer 6

person who forms the trust and supplies the assets

Question 7

trustee

Answer 7

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

Question 8

beneficiary

Answer 8

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

Question 9

intent from grantor

Answer 9

must have a valid legal purpose

Question 10

property

Answer 10

assets subject to the trust

Question 11

living trust

Answer 11

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

Question 12

Recovable living trust

Answer 12

living trust that can be dissolved

Question 13

Irrevocable living trust

Answer 13

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

Question 14

Will/testament

Answer 14

a legal document by a person, the testator, that names one or more persons , executor, to manage his/her estate and provides for the distribution of property upon death

Question 15

A living will

Answer 15

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, only effect in the event where you cannot express your wishes

Question 16

oral will

Answer 16

spoken testaments given before witnesses. Not widely recognized from a legal perspective

Question 17

testamentary will

Answer 17

formally prepared document signed in the presence of witnesses

Question 18

holographic will

Answer 18

written without the presence of witness. Rarely hold up in court

Question 19

estate planning

Answer 19

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

Question 20

trade off

Answer 20

giving up one thing for another

Question 21

guardianship

Answer 21

requires a legal document called a will

Question 22

attoreneys

Answer 22

provide you insights for titling documents, wills, etc

Question 23

accountants

Answer 23

help you determine net worth and see tax advantages

Question 24

certified financial planners

Answer 24

help you diversify investments and protect assets

Question 25

estate

Answer 25

the assets of a deceased person after all debts are paid

Question 26

What are the primary functions of estate?

Answer 26

peace of mind, maintain control, protect assets, avoid probate

Question 27

What type of consequences would you have if you didn’t do estate planning?

Answer 27

may need guardianship, medical wishes might not be carried out, state law decides who receives your assets and the proportions, etc

Question 28

gradually increased tax free limit while reducing a maximum rate

Answer 28

Tax Relief Act of 2001

Question 29

What is a positive outcome of estate planning?

Answer 29

provides for loved ones after you are gone, and leaves a legacy to family

Question 30

How old do you have to be to do estate planning when your a teen?

Answer 30

you have to be 18 years old

Question 31

What determines the care of children under 18?

Answer 31

Guardianship

Question 32

Who can help with planning?

Answer 32

family, financial institutions, attorneys, etc.

Question 33

What is the first step to estate planning?

Answer 33

honest conversation

Question 34

Financial statements lead to…

Answer 34

earning, and eventually saving and investing

Question 35

What is the purpose of a will?

Answer 35

to ensure the estate is distributed and desired

Question 36

these files provide a copy of the will, a list of assets and liabilities, and pay debts and sells necessary assets

Answer 36

executor

Question 37

Can a trust be revocable?

Answer 37

yes, at any time

Question 38

Gifts by will include:

Answer 38

specific gifts, non specific gifts, residuary gifts, etc

Question 39

healthy giving

Answer 39

giving out of excess in you rlife

Question 40

unhealthy giving

Answer 40

when giving is a method of gaining power over another