Children Flashcards
(14 cards)
True or false children only inherit money from their parents if stated specifically in their will
False.
If you want to disinherit a child or grandchild, it’s critical that you stayed this explicitly in your will
True or false
Person you name as personal guardian can’t actually serve as the legal guardian until approved by court
True
The judge has the authority to name someone else if the judge is convinced it is in the best interests of the child
A court won’t appoint someone other than a biological or legal parent unless that parent
- is unavailable
- has legally abandoned the child, or
- is an unfit parent
It’s usually quite difficult to prove that a parent is unfit, absent. Several problems such as serious drug use, a history of violence to the child, or mental illness.
If you have young children but not much money, ________ insurance can provide cash to support your children if you die while they are still young.
Term life
What is a family pot trust?
A family pot trust is a type of trust that makes all of the funds available to all named beneficiaries.
True or False: In a family pot trust, each beneficiary has a fixed amount of funds they can access.
False
Fill in the blank: A family pot trust allows for _______ distribution of funds among beneficiaries.
flexible
Which of the following is a key advantage of a family pot trust? (A) Fixed distributions (B) Flexible access to funds (C) No beneficiaries
B
Short answer: Name one situation where a family pot trust might be beneficial.
When there are multiple beneficiaries with varying needs for financial support.
What is a spendthrift trust?
A legal arrangement that protects a beneficiary’s assets from being squandered or mismanaged.
Who is a spendthrift trustor?
An individual who creates a spendthrift trust for a beneficiary.
What is the primary purpose of a spendthrift trust?
To prevent a beneficiary from accessing the trust funds directly, thereby protecting them from poor financial decisions.
Fill in the blank: A spendthrift trust is typically established for a beneficiary who _______.
[cannot handle money]
True or False: A spendthrift trust allows the beneficiary to control the trust assets directly.
False
