Match the terms with the definitions. Some terms may not be used.

a. codicil

b. estate

c. estate tax

d. gift tax

e. inheritance $\operatorname{tax}$

f. power of attorney

g. probate

h. reverse mortgage

i. trust

j. will

__ A federal tax on property transferred from an estate to its heirs

Prepare a simple will for yourself, following Figure 15. 1. What would happen to your property if you did not have a will?

Match the terms with the definitions . Some terms may not be used

a. $401(k)$ plan

b. $403(b)$ plan

c. definedbenefit plan

d. definedcontribution plan

e. individual retirement account (IRA)

f. Keogh plan

g. Roth IRA

h. Simplified Employee Pension (SEP) plan

i. traditional IRA

__ A tax-deferred retirement plan available to small businesses

Senior citizens often fall victim to scams. One such scam was reported in California. A real estate broker searched for unoccupied homes with delinquent taxes, many of which were owned by senior citizens staying in nursing homes. The broker paid the delinquent taxes and fraudulently transferred the property to his name without the owners' consent. He then rented the homes and kept the money. This crook defrauded homeowners of more than $5 million. How can elderly people protect themselves and their property from scams?

Jackson has worked for over $45$ years. He served in the military for $20$ of those years. He reaches full retirement age next year. Explain to him the benefits that he might expect to receive.

Tanya is self-employed. Every year, she has extra money she could save, but instead spends it on trips and jewelry. She earns above-average income from her business, putting her in a high tax bracket. Explain to her why she should strongly consider a Keogh plan or SEP plan for her retirement years.

What is a trust will? Why is it important? Explain how it is used in estate planning.

Bob works and earns under $25,000 a year. He has never had an IRA because he thinks Social Security will be enough for retirement income. Explain to him how an IRA works, and why he should consider one.

Explain how you might invest your money to be sure your income keeps up with inflation.

Renee and Ryan own a new car jointly with right of survivorship. Can Renee leave her share of the car to another person when she creates her will? Why or why not?

Suppose your employer offers a 401 (k) plan with 50 percent matching. How would contributing to this plan affect your current income? Future income? Do you think participating in this plan is a good idea? Explain.

Violeta Ramirez has an employer-paid pension of $\$ 300$ a month and Social Security benefits of $\$ 1,100$ a month. She owns her home free and clear but has high medical bills. Explain to her how she can use her house equity to generate monthly income for her retirement years.

Why are many young people often reluctant to plan for retirement?

Explain why your personal retirement plan should contain both tax -deferred options and some pretaxed savings.