Flashcards 1

Question 1

Specific gifts

Answer 1

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

Question 2

Non-specific gifts

Answer 2

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

Question 3

Residuary gifts

Answer 3

everything left in estate after 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 of gift on child’s behalf

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

asses 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

Revocable 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

A Living Will

Answer 14

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

Question 15

Oral Will

Answer 15

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

Question 16

Testamentary Will

Answer 16

formally prepared document signed in the presence of witnesses.

Question 17

Holographic Will

Answer 17

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

Question 18

Trade-Offs

Answer 18

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

Question 19

Guardianship

Answer 19

requires a legal document called a will.

Question 20

Will

Answer 20

determines guardians, money flow otherwise determined by court

Question 21

Attorneys

Answer 21

can provide you insights for titling documents, wills, etc…

Question 22

Accountants

Answer 22

can help you determine net worth, see tax advantages

Question 23

Certified Financial Planners

Answer 23

can help you diversify investments, protect assets

Question 24

Estate Planning

Answer 24

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

Question 25

Healthy Giving

Answer 25

giving out of excess in your life

Question 26

Unhealthy Giving

Answer 26

does not enhance the well-being of both the receiver and giver

Question 27

Money Management tool

Answer 27

Statement of Financial Position

Question 28

Money Management tool

Answer 28

Income and Expense Statement

Question 29

Money Management tool

Answer 29

Spending Plan

Question 30

Financial Statements

Answer 30

assess the overall financial position to evaluate pros and cons of giving

Question 31

Financial Statements

Answer 31

creates a plan for special events that involve giving

Question 32

Earning

Answer 32

choose a career that can help you meet your giving goals

Question 33

Earning

Answer 33

a career choice could be an ultimate form of giving

Question 34

Earning

Answer 34

be grateful to those that have given to your growth of human capital

Question 35

Savings and Earnings

Answer 35

emergency savings should be established prior to giving

Question 36

Savings and Investing

Answer 36

savings and investing are valuable avenues to give

Question 37

Risk Management

Answer 37

ensure you have planned for life events and accounted for such expenses prior to giving

Question 38

Risk

Answer 38

chance of loss from an event that cannot be entirely controlled

Question 39

Insurance

Answer 39

a financial product purchased by many people facing a similar risk to protect against the risk of larger losses

Question 40

Policy

Answer 40

A contract between the insurance company and the insured that states the exact terms of the policy

Question 41

Coverage

Answer 41

The risks covered and amount of money paid for losses under an insurance policy

Question 42

Premium

Answer 42

Money paid to purchase the policy

Question 43

Claim

Answer 43

a formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury

Question 44

Deductible

Answer 44

the out-of-pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss

Question 45

Co-insurance

Answer 45

requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid

Question 46

Employee benefits

Answer 46

products or services that add extra value for employees beyond earned wages

Question 47

Health Insurance

Answer 47

provides money to pay for health care

Question 48

Disability Insurance

Answer 48

Provided by employers, individuals, and/or government

Question 49

Long-term care insurance

Answer 49

Provided by individuals

Question 50

Property Insurance

Answer 50

payment to insured person if his/her property is damaged or destroyed by an accident