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27 Cards in this Set
- Front
- Back
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Estate Planning |
The process of developing a plan to administer and distribute your assets on death in a manner with wishes and needs. |
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Probate Estate |
Consists of the real and personal property you own in your own name that can be transferred at death according to terms of a will and under state law. |
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Gross Estate |
Include all property and life insurance, jointly held property with rights of survivorship. |
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Will |
A written, legal enforceable expression or declaration of a person's wishes concerning the disposition of his or her property on death. |
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Intestacy |
When a person dies without a valid will. "Draw the will the decedent failed to make" |
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Escheat to the State |
When property goes the the state due to the absence of a will and no relatives. |
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Testator |
Allows a person to direct the disposition of property at his or her death. Can change or revoke a will at anytime prior to his or her death. |
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Features of a Will |
-Introductory Clause -Direction Of Payments -Disposition of Property -Appointment Clause -Tax Clause -Simultaneous Death Clause -Execution and Attestation Clause -Witness Clause
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Requirements Of a will |
Mental Capacity- Must be of a "Sound Mind" Freedom Of Choice- Must not be under the influence of another person Proper Execution- Meet state requirements, two witnesses, signing
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Codicil |
A simple and convenient legal means of modifying a will is often a single page document that reaffirms all the existing provisions in the will except the one to be changed. |
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Letter or Last instructions |
Thoughts they want to convey and instructions they wish other to carry out. Form of a memorandum separate from will. |
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Probate Process |
Process of Liquidation to settle debt. |
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Power of Attorney |
A legal document that authorizes another person to takeover ones financial affairs and act on his or her behalf. |
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Living will |
A document that state, in very precise terms, the treatments that a person wants and to what degree he or she wishes them continued if he or she becomes terminally ill. |
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Ethical wills (legacy Statements) |
An informal personal statement left for family, friends, and community that shares your values, blessing, lifes lessons and hopes and dreams for the future.
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Right of Survivorship |
The right of the surviving owners to receive title to the deceased joint owners interest. |
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Tenants in common |
No right of survivorship, and each co-owner can leave his or her share to whomever they desire. |
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Trust |
Legal relationship between the grantor(trustors), trustee(an organization), benficiaries(third party) |
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Living trust |
Trust Created and funded during grator's lifetime |
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Revocable Living trust |
A trust in which the grantor reserves the right to revoke the trust and regain trust property |
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Irrevocable Living trust |
A trust in which the grantor relinquishes the title to the property place in it and gives up the right to revoke or terminate the trust.
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testamentary trust |
A trust created by the decedents will and funded through the probate process. |
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Irrevocable Life Insurance Trust |
An irrevocable trust in which the major asses is life insurance on the grantors life. |
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Gift tax |
Imposes a tax on transfers of property during a person's life, prevents avoidance of the estate tax show a person want to give away his/her estate.
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Annual Exclusion |
The mount of money a person can gift annually without affecting the unified credit. |
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Estate tax |
A tax levied on the value of property transferred at the owner's death. |
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Unified tax Credit |
Integrated version of federal gift tax and estate tax. |
