FHCE2100 Final Exam: Estate Planning
how much does an average funeral cost?
10,000
wills must be signed, witnessed by ___ or more people, and _________
2, notarized
basic organization of a will: -names the executor of the will -appoints guardians for all children under 18 years of age
appointment clause
step 1 of the estate planning process: determine what your estate is worth -estate net worth = value of estate's ___________ - value of estate ____________ ex) payment of mortgage
assets, liabilities
basic organization of a will: -dates and validates the will with a signature before 2 or more witnesses, who also must sign the document
attestation and witness clause
the people who receive your property after you die
beneficiaries
ways to avoid probate: -naming ____________ in contracts (pensions)
beneficiaries
ways to avoid probate: joint ownership -tenancy in _________- will controls distribution of deceased's share -does not automatically go to survivor
common
basic organization of a will: -identifies which spouse is assumed to have died first in the event of simultaneous death
common disaster clause
ways to avoid probate: joint ownership -__________ property- state law and will control distribution of the property
community
requirements of a valid will: -mental ___________ -under no undue _______ from another person -will must conform to the _______ laws
competence, influence, state
basic organization of a will: -allows for the distribution of money and property -names the beneficiaries -contains a remainder clause stipulating the disposition of any assets not directly given
disposition of property clause
other estate planning documents: -provides for someone to act on your behalf in the event you should become mentally or physically incapacitated -this document is separate from the will and goes into effect before death -this document should be very specific as to which legal powers it transfers
durable
AKA personal representative- the person who is responsible for carrying out the provisions of the will
executor (executrix for females)
purposes of the probate process: -appoint an __________, if one is not named -validate the ________ -allow for _________ to the will -oversee the distribution of ________ -file a _____ with the court and close the estate
executor, will, challenges, assets, report
ways to avoid probate: _________ -up to $14,000 per year tax free -charities
gifts
cares for minor children and manages their property after you die
guardian
other estate planning documents: -designates someone to make health care decisions should you be unable to do so for yourself
health care proxy
basic organization of a will: this part identifies the owner of the will and revokes all previous copies of the will
introductory statement
the basic organization of a will: -__________ statement -payment of _____ and taxes clause -disposition of ______ clause -appointment clause -common _______ clause -attestation and _______ clause
introductory, debt, property, disaster, witness
ways to avoid probate: ________ ownership
joint
the safest way to have a will drawn up is by a ________
lawyer
step 3 of the estate planning process: determine the cash needs of the estate -___________ assets are needed to pay estate taxes -__________ expenses
liquid, funeral
other estate planning documents: -______ will- states your wishes regarding medical treatment in the event of a terminal illness or injury
living
ways to avoid probate: joint ownership -tenancy by the entirety- usually for ___________ couples
married
wills can be handwritten, computer generated, or ________
oral
basic organization of a will: this part directs the payment of debts, death and funeral expenses, and taxes
payment of debt and taxes clause
the process of the distributing an estate's assets
probate
the benefits of using trusts for estate transfer: -avoid ______ -are much more difficult to challenge in court than are _______ -reduce estate ______ -allow for professional management -provide for _____________ (think hollywood)
probate, wills, taxes, confidentiality
ways to avoid probate: joint ownership -joint tenancy with the right of ___________- not necessarily married
survivorship
ways to avoid probate: _________ -living: take effect before death -testamentary: take effect upon death
trusts
a legal document that transfers an estate after death
will
the estate planning process: 1) determine what your estate is _________ 2) choose your ________ and decide what they receive 3) determine the ______ needs of the estate 4) select and _______ your estate planning techniques
worth, heirs, cash, implement