Chapter 15

Front 1

Reverse Mortgage

Back 1

A loan against the equity in the borrower's home in which the lender makes tax-free monthly payments to the borrower.

Front 2

Heirs

Back 2

People who recieve property from someone who has died.

Front 3

Estate

Back 3

All that a person owns,less debts owed,at the time of the person's death.

Front 4

Estate planning

Back 4

Preparing a plan for transferring property during one's lifetime and at one's death .

Front 5

Will

Back 5

A legal document that tells how you want your estate to be distributed after your death.

Front 6

Codicil

Back 6

A person can make a will and later make small changes with this document.

Front 7

Power of attorney

Back 7

A legal document authorizing someone to act on your behalf.

Front 8

Trust

Back 8

Alegal document in which an individual gives someone else control of property, for ultimate distribution to another person.

Front 9

Estate tax

Back 9

A tax on property transferref from deceased people to their heirs.

Front 10

Gift tax

Back 10

Tax on a gift or money or property, to be paid by the giver, not the receiver, of the gift.

Front 11

Inhertitance Tax

Back 11

A tax on an heir who recives the property from a deceased person's estate.

Front 12

Individual Retirement Account (IRA)

Back 12

A retirement savings plan that allows individuals to set aside up to 30,000 per year and delay paying tax on the earnings until they begin withdrawing it at age 59 1/2 or later.

Front 13

Keogh plan

Back 13

Tax-deffered retirement savings plan available to self-employed individuals and their empolyees.

Front 14

Defined-benefit plan

Back 14

Such as a pension, is a company-sponsered retirement plan in which employees receive , at the normal retirement age, specified monthly amount based on wages earned and years os service.

Front 15

Defined-contribution plan

Back 15

A company-sponsered retirement plan in which employees may choose to contribute part of their salary as a tax-deferred invesment.