Estate Planning Has Two Parts

question 94

Multiple Choice

Estate planning has two parts.The first part consists of:

• A)building your estate through savings,investments,and insurance.
• B)transferring your estate in the manner you have specified.
• C)deciding who is going to get what.
• D)evaluating your assets and liabilities.
• E)planning for the period right after you diE.

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Definitions:

Compounded Quarterly

A process of calculating interest where the interest earned is added to the principal at the end of every three months, leading to an increase in the amount on which subsequent interest is calculated.

Semi-Annually

Occurring twice a year; typically refers to payments or adjustments made every six months.

Withdraw

To take money out of an account or to remove oneself from a particular situation.

Compounded Annually

A method of calculating interest where the interest for the year is added to the principal sum, thus interest in the next year is on the increased sum.