Ch 14

To die without a valid will is to die:

Intestate

A(n) ____ will is always prepared on a preprinted form.

Statutory

Which of the following is the best and most complete definition of estate planning?

The plan for the administration and disposition of property during one's lifetime and at death

An estate tax is:

a tax collected on the value of property at the time of death

Any gifts of more than _____ given by one person to another in a single year are subject to a gift tax as of 2017.

$14,000

Which two of the following statements best characterizes estate planning as part of the retirement and financial planning process?

- Estate planning involves planning how to distribute your assets at death through a manner you have specified. - Estate planning involves building assets through savings, investing, and insurance

Which 3 of the following are true about rules of a Roth IRA?

- Five years after establishing the account, you can withdraw tax-free distributions if you are at least age 59.5 - Earnings accumulate tax free - Contributions are not tax deductible

Three sources of retirement income usually include:

- Public pension plans - Employer pension plans - Payments from annuities

The building of an estate (net worth) is done through which 3 of the following:

- Savings - Investments - Insurance

Which two of the following are rules of the traditional IRA?

- You can contribute up to $5,500 to a traditional IRA if you are under age 50. - You can contribute up to $6,500 to a traditional IRA if you are over age 50.

Which four are myths (not true) about retirement planning?

- Your employer's health insurance plan and Medicare will cover all your medical expenses. - Your pension benefits will increase to stay up with inflation. - I can depend on Social Security and pension plan to pay my living expenses. - There's plenty of time for me to start saving for retirement.

With a(n) _____, your employer will sometimes match your contributions up to specific dollar amount or percentage of your salary.

401(k) plan

Vesting is:

An employee's right to receive some of the employer's pension plan contributions when leaving before retirement

When preparing a formal will, one often uses the services of a(n) ____.

Attorney

A person who has been named to receive a portion of your estate after your death is called a(n)

Beneficiary

A defined-___________________retirement plan provides an individual account for each participant.

Contribution

The two main components of estate planning are to first build your estate through various strategies (such as savings, investing, and insurance) and secondly to ensure that your estate will be distributed at __________ according to your wishes.

Death

A(n) ____ includes everything you own at death.

Estate

An annuity is a contract that could provide retirement income for a set number of years or _____.

For life

A(n) ____ tax is a tax on the privilege of making gifts to others.

Gift

A(n) ____ will is one that is handwritten.

Holographic