Ch 24 Test Review Flashcards
(32 cards)
(T/F) An assisted-living facility provides personal and medical services for the elderly.
True
(T/F) No matter how much money you earned during your lifetime, your Social Security benefits will be the same.
False
(T/F) Saving a small amount of money each month will not help you in retirement planning.
False
(T/F) Vesting is an employee’s right to keep the company’s contributions from company-sponsored plans even if the employee no longer works there.
True
(T/F) Annual contributions to a Roth IRA are fully tax-deductible and earnings are tax-deferred.
False
(T/F) If you die while on vacation, you die intestate.
False
(T/F) Probate is the legal process of proving whether a will is valid.
True
(T/F) You can avoid probate by setting up a living trust.
True
(T/F) If you and your spouse own property as tenants in common, your share automatically goes to your partner when you die.
False
(T/F) A traditional marital share will leaves everything to the spouse.
False
All the following assets usually have an important effect on people’s retirement income EXCEPT their ___.
house / Social Security benefits / vehicle / stocks and bonds
vehicle
The Social Security program ___.
is raising the retirement age at which individuals can receive full benefits
Retirees often spend less money on ___.
transportation
The salary reduction plan for an employee at a tax-exempt institution is called a ___.
403(b) plan
A person can transfer all or a portion of the taxable distribution from his or her retirement plan to a(n) ___.
rollover IRA
People approaching retirement often purchase ___.
an immediate annuity
A well-prepared estate plan will include all of the following EXCEPT ___.
a typed holographic will / insurance papers / a letter of last instruction / marriage certificates and divorce papers
a typed holographic will
In a living will, a person expresses whether he or she wants to ___.
be kept alive by artificial means if terminally ill
Ta collected by the state on the property left by a person in his or her will is called ___.
inheritance tax
Cash that a married couple gives to another person is subject to a gift tax if the amount is over ___.
$22,000
an arrangement in which a designated person manages assets for the benefit of someone else
trust
a person who accepts the responsibility of caring for the children of parents who die and of managing the parents’ estate until the children reach a certain age
guardian
someone designated to perform the tasks involved in carrying out a will
executor
a legal document that authorizes a person to act on another’s behalf
power of attorney
