Estate Planning BEST STUDY GUIDE
RATED A+
A will is a legal declaration by which a person, the testator, names one or more
persons to manage their estate and provides for the transfer of their property at
death of the testator. - correct answer ✅
death. A will may also create a testamentary trust that is effective only after the
Will
In the United States, a living trust refers to a trust that may be revocable by the
trust creator or settlor (known by the IRS as the Grantor). Living trusts are often
used because they may allow assets to be passed to heirs without going through
the process of probate. Avoiding probate will normally save substantial costs (the
probate courts, in some states, charge a fee based on a percentage net worth of
the deceased), time, and maintain privacy (the probate records are available to
the public, while distribution through a trust is private). A living trust can also be
giving discretionary powers to the trustee. - correct answer ✅
utilized to plan for unforeseen circumstances such as incapacity or disability, by
Living Trust
Estate planning involves the will, trusts, beneficiary designations, powers of
appointment, property ownership (joint tenancy with rights of survivorship,
tenancy in common, tenancy by the entirety), gift, and powers of attorney,
specifically the durable financial power of attorney and the durable medical power
of attorney. After widespread litigation and media coverage surrounding the Terri
Schiavo case, virtually all estate planning attorneys now advise clients to also
create a living will or health care directive. Specific final arrangements, such as
whether to be buried or cremated, are also often part of the documents. More
sophisticated estate plans may even cover deferring or decreasing estate taxes or
winding up a business.
Many people (and even some attorneys) confuse a living will with a durable
decisions, whereas a durable - correct answer ✅
medical power of attorney. A living will sets out directives concerning end of life
Estate Planning
, Estate Planning BEST STUDY GUIDE
RATED A+
In contrast to a revocable trust, an irrevocable trust is one in which the terms of
the trust cannot be amended or revised until the terms or purposes of the trust
have been completed. Although in rare cases, a court may change the terms of the
trust due to unexpected changes in circumstances that make the trust
uneconomical or unwieldy to administer, under normal circumstances an
trust. - correct answer✅
irrevocable trust cannot be changed by the trustee or the beneficiaries of the
Irrevocable Trust
In the U.S. an annuity contract is created when an individual gives a life insurance
company money which may grow on a tax-deferred basis and then can be
distributed back to the owner in several ways. The defining characteristic of all
annuity contracts is the option for a guaranteed distribution of income until the
death of the person or persons named in the contract. Perhaps confusingly, the
majority of modern annuity customers use annuities only to accumulate funds
feature. - correct answer ✅
and to take lump-sum withdrawals without using the guaranteed-income-for-life
Annuity
Traditional IRA - contributions are often tax-deductible (often simplified as "money
is deposited before tax" or "contributions are made with pre-tax assets"), all
transactions and earnings within the IRA have no tax impact, and withdrawals at
retirement are taxed as income (except for those portions of the withdrawal
corresponding to contributions that were not deducted). Depending upon the
IRA" or a "non-deductible IRA." - correct answer
Account)
✅
nature of the contribution, a traditional IRA may be referred to as a "deductible
IRA (Individual Retirement
Probate is the legal process of administering the estate of a deceased person by
resolving all claims and distributing the deceased person's property under a valid
will. A probate court decides the validity of a testator's will. A probate proceeding
interprets the instructions of the deceased, decides the executor as the personal
RATED A+
A will is a legal declaration by which a person, the testator, names one or more
persons to manage their estate and provides for the transfer of their property at
death of the testator. - correct answer ✅
death. A will may also create a testamentary trust that is effective only after the
Will
In the United States, a living trust refers to a trust that may be revocable by the
trust creator or settlor (known by the IRS as the Grantor). Living trusts are often
used because they may allow assets to be passed to heirs without going through
the process of probate. Avoiding probate will normally save substantial costs (the
probate courts, in some states, charge a fee based on a percentage net worth of
the deceased), time, and maintain privacy (the probate records are available to
the public, while distribution through a trust is private). A living trust can also be
giving discretionary powers to the trustee. - correct answer ✅
utilized to plan for unforeseen circumstances such as incapacity or disability, by
Living Trust
Estate planning involves the will, trusts, beneficiary designations, powers of
appointment, property ownership (joint tenancy with rights of survivorship,
tenancy in common, tenancy by the entirety), gift, and powers of attorney,
specifically the durable financial power of attorney and the durable medical power
of attorney. After widespread litigation and media coverage surrounding the Terri
Schiavo case, virtually all estate planning attorneys now advise clients to also
create a living will or health care directive. Specific final arrangements, such as
whether to be buried or cremated, are also often part of the documents. More
sophisticated estate plans may even cover deferring or decreasing estate taxes or
winding up a business.
Many people (and even some attorneys) confuse a living will with a durable
decisions, whereas a durable - correct answer ✅
medical power of attorney. A living will sets out directives concerning end of life
Estate Planning
, Estate Planning BEST STUDY GUIDE
RATED A+
In contrast to a revocable trust, an irrevocable trust is one in which the terms of
the trust cannot be amended or revised until the terms or purposes of the trust
have been completed. Although in rare cases, a court may change the terms of the
trust due to unexpected changes in circumstances that make the trust
uneconomical or unwieldy to administer, under normal circumstances an
trust. - correct answer✅
irrevocable trust cannot be changed by the trustee or the beneficiaries of the
Irrevocable Trust
In the U.S. an annuity contract is created when an individual gives a life insurance
company money which may grow on a tax-deferred basis and then can be
distributed back to the owner in several ways. The defining characteristic of all
annuity contracts is the option for a guaranteed distribution of income until the
death of the person or persons named in the contract. Perhaps confusingly, the
majority of modern annuity customers use annuities only to accumulate funds
feature. - correct answer ✅
and to take lump-sum withdrawals without using the guaranteed-income-for-life
Annuity
Traditional IRA - contributions are often tax-deductible (often simplified as "money
is deposited before tax" or "contributions are made with pre-tax assets"), all
transactions and earnings within the IRA have no tax impact, and withdrawals at
retirement are taxed as income (except for those portions of the withdrawal
corresponding to contributions that were not deducted). Depending upon the
IRA" or a "non-deductible IRA." - correct answer
Account)
✅
nature of the contribution, a traditional IRA may be referred to as a "deductible
IRA (Individual Retirement
Probate is the legal process of administering the estate of a deceased person by
resolving all claims and distributing the deceased person's property under a valid
will. A probate court decides the validity of a testator's will. A probate proceeding
interprets the instructions of the deceased, decides the executor as the personal
