the amount that can pass tax-free... either in the form of a gift or a tax credit (given to beneficiaries) that can be applied to the amount of a decedent’s federal estate tax

This is the amount that can be given as a gift each year without the transaction being subject to the federal gift tax law.

This is the process of developing a plan to administer and distribute a person’s assets after death in a manner consistent with his or her wishes and the needs of his or her survivors, while also minimizing taxes.

The court-supervised disposition of a decedent’s estate. It involves the payment of the decedent’s last expenses and debts, the collection of any monies owed, and the distribution of the decedent’s assets to the appropriate individuals and organizations.

A legal document that allows the testator to modify a will without revoking it

The condition of dying without preparing a will

A legal relationship created when one party transfers property to a second party for the benefit of third parties; they are used to make it easier to transfer property and income to another party.

is the control or influence that can be exerted on a testator to reduce or remove his or her freedom of choice; when this is present in the creation of a Will then it becomes invalid

All property you own at the time of your death, including all property that might be subject to federal estate taxes (for example, life insurance plans, jointly held property with rights of survivorship, and property passing under certain employee benefit plans

What is the First step in the estate planning process?

What is the Second step in the estate planning process?

What is the Third step in the estate planning process?

what is the FINAL step in the estate planning process?

Which of the following are the responsibilities of the decedent’s personal representative? (choose more than 1)

This legal document authorizes another person to take over someone’s financial affairs and act on his or her behalf.

This document precisely states the treatments a person wants, and the degree to which the treatments should be applied, if he or she becomes terminally ill.

This legal document authorizes another person to make health care decisions on your behalf if you are unable to make such decisions yourself. This document is also called advanced directives for health care.

This is a personal statement left for your family, friends, and community that outlines your values, blessings, life’s lessons, and hopes and dreams for the future. It is also called a legacy letter.

Which of the following forms of joint ownership are subject to the right of survivorship? (check all that apply)

This type of joint ownership may consist of any number of persons who are not necessarily related to one another. Because this type of ownership is subject to the right of survivorship, the interest of a decedent passes directly to the other joint owner or owners.

This type of joint ownership can exist only between husband and wife. Because this type of ownership is subject to the right of survivorship, the interest of a decedent passes directly to his or her spouse. In this type of joint ownership, the tenancy can be severed only by mutual agreement, divorce, or conveyance by both spouses to a third party.

This type of joint ownership is not subject to the right of survivorship. Each co-owner can leave his or her share to whomever he or she desires. The decedent’s will controls the disposition of the decedent’s partial interest in the asset. This form of joint ownership can exist in unequal shares.

This type of joint ownership is a form of marital ownership and consists of all property acquired by the effort of either or both spouses during marriage while they reside in a community property state. Any property (including wages, commissions, and so on) acquired while living in a community property state is automatically owned equally by both spouses, even if only one spouse was directly involved in acquiring the property.

Alison created a trust in which she has the right to change its terms or even to cancel it. When Alison dies, the assets will be considered part of her estate. What tust did Alison create?

Madeline is a successful professional who has three competitive children. To avoid fueling sibling rivalry, Madeline created separate trusts for each child with the same amount of money funding each trust, available on the child’s twenty–first birthday, whether Madeline is dead or alive. Madeline has no power to change the terms of the trusts regardless of how her children conduct their lives

Eileen wants full use of her assets while she is alive. Eileen has no children. She created a trust to eventually give her assets to her nieces and nephews and to provide income from those assets to her surviving husband.

This is the popular name given to a vehicle manufacturer’s suggested retail price (MSRP), which is posted on the vehicle’s window

This is a legal agreement which states that the details of the sale of the asset (for example, a car) to the purchaser.

This is a contract and business transaction in which the user of an item, such as a car or house, receives the right to use it in exchange for scheduled payments for a fixed period of time

This is the price at which a lessee can purchase his or her leased car or other asset of the end of the lease period

an inducement to purchase that takes the form of a partial refund of a car’s purchase price.

Financial experts recommend that the amount of your car payment should not exceed ___ of your net monthly income

Which of the following are considered advantages of leasing a house? (Select all that apply)

The expenses that a borrower pays when his or her mortgage loan is closed, the funds are paid to the seller, and the buyer receives title to the purchased property

_____: in a real estate sales contract makes the agreement conditional on one or more factors or events. This protects the prospective buyer by making the sale contingent upon the occurrence or nonoccurrence of certain events, such as the availability of financing or the absence of termites or cracks in the foundation.

The money pledged by a potential house buyer to show his or her good faith when making an offer

the situation in which the market value of a parcel of real estate is lower than the amount owed on the loan used to purchase the parcel.

a real estate transaction in which a property or a dwelling is sold for a price that is less than the balance owed on the loan secured by the property.

Hilary is in her mid-60s and currently lives in Boston; her husband passed away six months ago. She’s now considering moving closer to her children in Denver.

Her retirement income, investments, and inheritance are sufficient to make her current bills require only 35% of her income. She is young for her age, and she enjoys performing or dealing with necessary maintenance tasks around the home. Should she rent or Purchase?

The hedge against inflation occurs, because the price of houses generally increase at a rate _____________ than the rate of inflation

This mortgage is characterized by an interest rate and monthly payments that can be adjusted over the life of the loan based on movements in market interest rates.

This loan guarantee is offered by a department of the federal government to lenders who make qualified loans to eligible veterans of the U.S. Armed Forces and their surviving spouses

The lender of a __________ ________ assumes all of the risk of loss, including that caused by the borrower’s default. To reduce the likelihood of default, lenders typically require a down payment of 20% of the value of the mortgaged property

Insurance offered to mortgage borrowers who cannot afford the traditional 20% down payment

This is one means by which to obtain a cash advance from the bank that offers a credit card.

This credit card is useful for people with no credit or bad credit histories, and requires the card holder to invest in a certificate of deposit that can be used as collateral for the card

a credit card that combines features of a traditional bank credit card with an additional incentive, such as cash or merchandise rebates, airline tickets, or investments.

A portion of the profits from these cards goes to organizations such as political, nonprofit, or charitable organizations. If you wish to support an organization without having to remember to write a contribution check, see if it offers a bank credit card and apply for it.

What do the three major forms of open (non-credit card) credit have in common? Check all that apply.

What are the major factors that your lender uses to determine your creditworthiness?

Your FICO score is based on 5 different factors, which of the following factors have the most influence on your credit score? (15% or above)

Which of the following is found first on the heiarchy of financial needs? (base of pyramid)

Which of the following is found second on the hierarchy of financial needs? ( just above base of pyramid)

Which of the following is found fourth on the hierarchy of financial needs? ( just below the top of the pyramid)

Which of the following is true about the Debt Safety Ratio? (select all that apply)

Which of the following is true about the Debt Safety Ratio? (select all that apply)

Revolving credit includes which of the following?

Installment credit includes which of the following?

Open credit includes which of the following?