Ch.15- Retirement And Estate Planning

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

Are people who recieve property from someone who has died.

Front 3

Will

Back 3

Is a legal documen that tells how you want your estate to be distributed after your death.

Front 4

Codicil

Back 4

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

Front 5

Power of Attorney

Back 5

Is a legal document authorizing someone to act on your behalf.

Front 6

Trust

Back 6

Is a legal document in which an individual ( the trustor ) gibes someone else ( the Trustee ) control of property, for ultimate distribution to another person ( the beneficiary ).

Front 7

Estate Tax

Back 7

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

Front 8

Inheritance Tax

Back 8

Is a tax on an heir who receives property from a deceased person's estate.

Front 9

Gift Tax

Back 9

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

Front 10

Individual Retirement account (IRA)

Back 10

Is a retirement savings plan that allows individuals to set aside up to $3,000 per year ( or $6,000 for a married couple filing jointly) and delay paying tax on the earnings untill they begin withdrawing it at age 59 1/2 or later

Front 11

Keogh Plan

Back 11

Is a tax- deferred retirement saings plan available to self-employed individuals and their employees.

Front 12

Defined- benefit Plan

Back 12

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

Front 13

Defined-Contribution Plan

Back 13

Is a company - sponsored retirement plan in which employees may choose to contribute part of their salary as a tax-deferred investment.

Front 14

Estate

Back 14

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

Front 15

Estate planning

Back 15

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