Trust Review Flashcards
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.
What is a way to show appreciation and give back?
Creating a will
Gifts by will may include…
Specific gifts, Non-specific gifts, Residuary gifts, Gifts to children, Gifts to charities
Trust
An agreement that determines how a person’s property is to be managed and distributed during lifetime and upon death.
Elements of a trust include…
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
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 dissolved
Irrevocable Living Trust
Living trust that cannot be changed, although it can provide income to the grantor
Will
Legal document designating the transfer of property and assets upon a person’s death.
What are the three main purposes of a 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.
Codicil
A document that specifies changes in an existing will must be prepared to make minor revisions.
A Power of Attorney
Legal document granting a person the power to make decisions, can be signed in the event you are incapable of making decisions for yourself.
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