Giving Flashcards
(23 cards)
Specific Gifts
Particular items or gifts given to beneficiaries after the owner’s death.
Residuary Gifts
Estate remaining after all bills, taxes, and gifts have been dealt with.
Gifts to Children
Gifts withheld by the executors until the child is of age (18)
Gifts to Charity
Tax free gifts left to charity
Trust
An agreement determining how one’s property will be managed/distributed during their lifetime and after death
Grantor
Person who forms the trust and supplies the assets
Trustee
Person chosen to administer the trust
Beneficiary
Person who benefits or receives from the trust
Intent from Grantor
Must have a valid legal purpose
Property
Assets subject to the trust
Living Trust
Trust where you assigning the management of your assets to a trustee, while you are still living
Revocable living Trust
A living trust that can be dissolved
Irrevocable Living Trust
Living trust that cannot be changed (it can provide income to the grantor)
Will
A legal document by a testator, naming at least one person to manage his/her estate and provide property distribution after their death.
Purpose of a Will
- Ensures estate is desirable distributed
- Specified beneficiaries receive
Living Will
Document explaining how the testator wishes to be cared for if they become brain dead, terminally ill, etc (unresponsive)
Oral Will
spoken legal testament
Testamentary Will
Formally prepared document signed with the presence of a witness
Holographic Will
Written without a witness present
Executor
They file forms in court, provide copies of the will, list assets and liabilities of the dead, pays debts, sells, etc. (they might open a bank account for all this)
Probate
A legal process that declares a will valid and ensures the orderly distribution of assets.
Estate
The assets of a deceased person after all debts are paid.
Primary functions of Estate
- Peace of mind
- Maintain control
- Protect assets for you and loved ones
- Estate taxes
- Creditors
- Special needs
- Avoid Probate
