Chpt. 15 Retirement And Estate Planning
Power Of Attorney
A legal document, authorizes another person to act on your behalf in your absence.
Defined-Contribution
A minimum contribution made by both employer and employee; no particular benefit is promised.
Intestate
A person who dies without having a valid will.
SEP
A retirement plan for small businesses, similar to that for self-employed individuals.
Estate
All a person owns, less debts owed, at the time of the person's death.
Vested
Certain number of years or other condition of employment has passed.
Defined-Benefit
Contract specifies the benefits promised to the employee at normal retirement age.
Probate
Court Process of paying debts and distributing property to heirs.
Estate(2)
Levied by the federal government on the transfer of property at death.
Heirs
People entitled to receive the property or assets from another person who has died.
Testator
Person who makes or draws a will.
401(k)
Plan available through companies that operate for a profit; taxes are deferred until the money contributed is withdrawn.
403(b)
Plan for employees of government or not-for-profit organizations; taxes are deferred until the money contributed is withdrawn.
Estate Planning
Process of planning for the administration and transfer of property during one's lifetime and at one's death.
Reverse Mortgage
Provides homeowner with tax-free income in the form of a loan to be paid back when the property is sold.
Keogh
Self-employed individuals and their employees contribute to.
IRA
Tax-sheltered retirement plan to which working people make annual contributions of up to $5,000 per year.
Codicil
Used to make small changes to an existing will.
Holographic
Will is one written in a person's own handwriting.
