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