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15 Cards in this Set
- Front
- Back
Reverse Mortgage
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A loan against the equity in the borrower's home in which the lender makes tax-free monthly payments to the borrower.
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Heirs
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Are people who recieve property from someone who has died.
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Will
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Is a legal documen that tells how you want your estate to be distributed after your death.
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Codicil
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A person can make a will and later make small changes with a document
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Power of Attorney
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Is a legal document authorizing someone to act on your behalf.
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Trust
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Is a legal document in which an individual ( the trustor ) gibes someone else ( the Trustee ) control of property, for ultimate distribution to another person ( the beneficiary ).
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Estate Tax
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A tax on property transferred from deceased people to their heirs.
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Inheritance Tax
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Is a tax on an heir who receives property from a deceased person's estate.
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Gift Tax
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Is a tax on a gift of money or property, to be paid by the giver, not the receiver, of the gift.
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Individual Retirement account (IRA)
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Is a retirement savings plan that allows individuals to set aside up to $3,000 per year ( or $6,000 for a married couple filing jointly) and delay paying tax on the earnings untill they begin withdrawing it at age 59 1/2 or later
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Keogh Plan
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Is a tax- deferred retirement saings plan available to self-employed individuals and their employees.
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Defined- benefit Plan
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Such as a pension, is a company- sponsored retirement plan in which employees receive, at normal retirement age, a specified monthly amount based on wages earned and number of years of service.
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Defined-Contribution Plan
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Is a company - sponsored retirement plan in which employees may choose to contribute part of their salary as a tax-deferred investment.
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Estate
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Is all that a person owns, less debts owed, at the time of the person's death.
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Estate planning
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Is preparing a plan for transferring property during one's lifetime and at one's death.
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