Chapter 15 Retirement and Estate Planning

a(n) ____ is a plan available through companies that operate for a profit; taxes are deferred until the money contributed is withdrawn.

401K

a(n) ____ is a plan for employees of government or not-for-profit organizations;taxes are deferred until the money contributed is withdrawn

403B

Self-employed individuals and their employees may contribute to a(n) ____ plan.

Koegh

a(n) _____ is used to make small changes to an existing will (x)

condicile

a(n) ____ annuity allows the tax-free buildup of interest or dividends during the contract time (x)

deferred

in a(n) ____ plan, the contract specifies the benefits promised to the employee at normal retirement age.

defined-benefit

In a(n) ____ plan, a minimum contribution is made by both employer and employee; no particular benefit is promised

defined-contribution

When a person is living, all he or she owns, less debts owed, is called

estate

a(n) _____ tax is levied by the federal government on the transfer or property at death. (x)

estate

____ is the process of planning for the administration and transfer of property during one's lifetime and at one's death

estate planning

___ are people entitled to receive the property or assets from another person who has died. (x)

heirs

a(n) ____ will is one written in a person's own handwriting(x)

holographic

a(n) ___ is a tax-sheltered retirement plan to which working people make annual contributions of up to $5500

individual retirement account

a person who dies without having a valid will is said to die _____(x)

intestate

a legal document called a(n) ____ authorizes another person to act on your behalf in your absence.

power of attorney

A court process called ____ is when a will is validated and processed.

probate

a(n) ____ provides a homeowner with a tax-free income in the form of a loan to be paid back when the property is sold.(x)

reverse mortgage

the ____ is the person who makes or draws a will

testor

an employee is ___ when a certain number of years or other condition of employment has passed.

vested

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

will