Wills/Inheritance
This legal document states who should receive your property after you die.
What is a Will
This person is named to receive your IRA or life insurance proceeds when you die.
Who is a beneficiary?
This type of trust generally cannot be changed or revoked by its creator once established
Irrevocable trust
Unlike a traditional IRA, qualified withdrawals from this type of retirement account are generally tax-free if the applicable requirements are met.
What is a Roth IRA
This document lets you name someone to make medical decisions if you cannot make them yourself.
What is a healthcare power of attorney (or healthcare proxy)
If someone dies without a valid will, they are said to have died under this legal condition.
What is intestacy
You name your daughter as the beneficiary of your IRA, but your will leaves everything to your son. Generally, this document controls who receives the IRA.
What is the IRA beneficiary designation
The person who creates a trust and transfers assets into it is commonly called this
Who is the grantor (or settlor)
This federal tax applies to certain transfers of wealth at death when the taxable estate exceeds the applicable exemption
What is the federal estate tax
This federal law generally requires healthcare providers to protect the privacy of your medical information
What is HIPAA?
A person named in a will to manage the estate, pay debts, and distribute assets is called this.
Who is the executor (or personal representative)
This type of jointly owned property generally passes directly to the surviving owner at the first owner's death, outside probate
What is property held with right of survivorship. JT, TOD, POD.
A person or institution responsible for managing trust assets according to the trust document and fiduciary duties is called this
Who is the trustee
When inherited property qualifies for this tax treatment, its tax basis is generally adjusted to fair market value at the owner's death
What is a step-up in basis
This legal document authorizes someone to handle financial matters on your behalf if you become incapacitated, depending on its terms
What is a durable financial power of attorney
A parent leaves their entire estate to one child in their will, but the other children believe they are automatically entitled to equal shares. Generally, this determines who inherits.
What is the valid will, subject to applicable law and any successful legal challenge
You name your estate rather than an individual as the beneficiary of your traditional IRA. This can change the distribution rules and may cause the IRA to go through this process
What is probate?
A revocable living trust generally becomes irrevocable when this event occurs, assuming the person who created it was the sole person with the power to revoke it
What is the grantor's death
A parent gifts appreciated stock to a child during their lifetime. The child generally receives this type of basis?
What is carryover basis
A person becomes unable to manage their finances and has no effective power of attorney. A court may need to appoint someone to manage their property through this type of proceeding.
What is a guardianship or conservatorship
This charitable giving account allows you to create a lasting legacy of generosity that you and your children can contribute to and recommend grants from over time
What is a Donor-Advised Fund (DAF
To maximize tax benefits when donating to charity, which type of account is often best to give from during your lifetime (if over 70.5) or at death.
Tax-deferred Asset - IRA, 401(K),403(B)
A person has a living trust but never transfers their home or investment account into it. This common mistake may prevent those assets from receiving the intended probate-avoidance benefits.
What is an unfunded trust
Under current federal law, most non-spouse individual beneficiaries who inherit a traditional IRA from someone who died after 2019 generally must empty the account by the end of this period, subject to exceptions and applicable distribution rules
What is 10 years
A person has Medicare Parts A and B but wants help with deductibles and coinsurance. This type of private insurance may help cover some of those costs.
What is Medigap (Medicare Supplement Insurance)