Unit 16 50 Facts

Question 1

Healthy Giving

Answer 1

Giving out of excess in your life

Question 2

Unhealthy Giving

Answer 2

When giving is a method of gaining power over another.

Question 3

Prepare for giving

Answer 3

Create a spending plan

Evaluate needs, wants and values

Assess your time

Plan for expenses, such as Christmas gifts

Avoid using credit for giving

Question 4

Statement of Financial Position

Answer 4

Money Management Tools

Question 5

Income & Expense Statement

Answer 5

Money Management Tools

Question 6

Spending Plan

Answer 6

Money Management Tools

Question 7

You are better off in a community than by yourself.

Answer 7

True

Question 8

You are better off in a community than by yourself.

Answer 8

True

Question 9

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

Answer 9

True

Question 10

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

Answer 10

True

Question 11

Gifts to charities

Answer 11

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

Question 12

Gifts to children

Answer 12

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 13

Residuary gifts

Answer 13

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

Question 14

Non-specific gifts

Answer 14

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

Question 15

Specific gifts

Answer 15

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

Question 16

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

Answer 16

$10,000

Question 17

grantor

Answer 17

person who forms the trust and supplies the assets

Question 18

trustee

Answer 18

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

Question 19

beneficiary

Answer 19

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

Question 20

intent from grantor

Answer 20

must have a valid legal purpose

Question 21

property

Answer 21

assets subject to the trust

Question 22

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.

Answer 22

True

Question 23

trust

Answer 23

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

Question 24

Living Trust

Answer 24

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

Question 25

Revocable living trust

Answer 25

Living trust that can be dissolved.

Question 26

Irrevocable living trust

Answer 26

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

Question 27

Will

Answer 27

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.

Question 28

Oral Will

Answer 28

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

Question 29

Testamentary Will

Answer 29

formally prepared document signed in the presence of witnesses.

Question 30

Holographic Will

Answer 30

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

Question 31

Elements of a Will

Answer 31

``` 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 ```

Question 32

Executing the Will

Answer 32

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.

Question 33

Probate

Answer 33

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

Question 34

Consequences of No Planning

Answer 34

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

Question 35

a large estate is subject to estate taxes if ___

Answer 35

There is no surviving spouse

Question 36

estate

Answer 36

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

Question 37

Estate Planning

Answer 37

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

Question 38

Living Will

Answer 38

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

Question 39

Trade-Offs

Answer 39

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

Question 40

Estate Planning for Teens

Answer 40

Must be 18 in most states

Question 41

Estate Planning for Teens

Answer 41

Letters are not legal documents

Question 42

Estate Planning for Teens

Answer 42

Letters are preferred over conversation because they have a longer presence

Question 43

Who can help with planning?

Answer 43

CPA & CFP

Question 44

Who can help with planning?

Answer 44

Other professionals as needed

Question 45

Who can help with planning?

Answer 45

Financial Institutions

Question 46

Who can help with planning?

Answer 46

Attorneys

Question 47

Teens are too Young to start

Answer 47

False

Question 48

The first step to estate planning

Answer 48

an honest conversation

Question 49

for help with estate planning

Answer 49

Seek out advice of professionals

Question 50

What is the Final Act of Financial Well being

Answer 50

Estate planning