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personal Finance MR/Borders > Unit 16 50 Facts > Flashcards

Unit 16 50 Facts Flashcards

1
Q

Healthy Giving

A

Giving out of excess in your life

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2
Q

Unhealthy Giving

A

When giving is a method of gaining power over another.

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3
Q

Prepare for giving

A

Create a spending plan

Evaluate needs, wants and values

Assess your time

Plan for expenses, such as Christmas gifts

Avoid using credit for giving

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4
Q

Statement of Financial Position

A

Money Management Tools

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5
Q

Income & Expense Statement

A

Money Management Tools

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6
Q

Spending Plan

A

Money Management Tools

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7
Q

You are better off in a community than by yourself.

A

True

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8
Q

You are better off in a community than by yourself.

A

True

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9
Q

You are responsible for your present self and your future self.

A

True

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10
Q

Investment helps manage risk and allows you to cope with risk and uncertainty.

A

True

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11
Q

Gifts to charities

A

Gifts left to charity in will are free from inheritance tax.

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12
Q

Gifts to children

A

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

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13
Q

Residuary gifts

A

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

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14
Q

Non-specific gifts

A

does not refer to specific item. (all my personal possessions)

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15
Q

Specific gifts

A

particular item or property in an estate transferred to beneficiary on owner’s death. Specifics must be provided. (house, jewelery, etc.)

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16
Q

A tax-free gift of up to _____ per year can be given without being subjected to tax for giver or receiver

A

$10,000

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17
Q

grantor

A

person who forms the trust and supplies the assets

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18
Q

trustee

A

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

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19
Q

beneficiary

A

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

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20
Q

intent from grantor

A

must have a valid legal purpose

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21
Q

property

A

assets subject to the trust

22
Q

A trust can be revocable, revoked or modified at any time or irrevocable, not modified or revoked unless by special permission of court to terminate it.

A

True

23
Q

trust

A

an agreement that determines how a person’s property is to be managed and distributed during lifetime and upon death

24
Q

Living Trust

A

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

25
Q

Revocable living trust

A

Living trust that can be dissolved.

26
Q

Irrevocable living trust

A

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

27
Q

Will

A

A Will or testament is a legal document by a person, the testator, that names one or more persons, executor, to manage his or her estate and provides for the distribution of property upon death. It can also identify a preferred guardian for any surviving children.

28
Q

Oral Will

A

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

29
Q

Testamentary Will

A

formally prepared document signed in the presence of witnesses.

30
Q

Holographic Will

A

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

31
Q

Elements of a Will

A 
name and place of residence
description of assets
names of spouse, children and other beneficiaries
alternate beneficiaries
specific gifts
establishment of trust if desired
cancellation of debts owed to you
name of executor to manage the estate
name of guardian for minor children
name of alternative guardian
your signature
witnesses' signatures
32
Q

Executing the Will

A

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.

33
Q

Probate

A

a legal process that declares a will valid and ensures the orderly distribution of assets

34
Q

Consequences of No Planning

A

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 your minor children

Heirs may unnecessarily incur estate taxes

35
Q

a large estate is subject to estate taxes if ___

A

There is no surviving spouse

36
Q

estate

A

the assets of a deceased person after all debts are paid.

37
Q

Estate Planning

A

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

38
Q

Living Will

A

A plan to care for someone who is young or incapacitated and cannot care for themselves

39
Q

Trade-Offs

A

A trade-off is giving up one thing for another.

40
Q

Estate Planning for Teens

A

Must be 18 in most states

41
Q

Estate Planning for Teens

A

Letters are not legal documents

42
Q

Estate Planning for Teens

A

Letters are preferred over conversation because they have a longer presence

43
Q

Who can help with planning?

A

CPA & CFP

44
Q

Who can help with planning?

A

Other professionals as needed

45
Q

Who can help with planning?

A

Financial Institutions

46
Q

Who can help with planning?

A

Attorneys

47
Q

Teens are too Young to start

A

False

48
Q

The first step to estate planning

A

an honest conversation

49
Q

for help with estate planning

A

Seek out advice of professionals

50
Q

What is the Final Act of Financial Well being

A

Estate planning

personal Finance MR/Borders (1 decks)

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