Make A Will

: If a beneficiary signs as a witness, he’s out of luck — he just gave up his inheritance.

Your mother is allowing you to make her financial decisions for her once she becomes incompetent by signing a durable power of attorney. If your mother can no longer pay bills, write checks, decide where to live or sign a lease, you can do these things for her, but only after she has been declared incompetent and unable to do these things for herself.

A living will provides specific instructions on how a person wants his or her medical care handled. Living wills allow you to control your medical care once you’re physically and/or mentally incapable of doing so.

Your brother gets the money. Life insurance proceeds go to the beneficiaries who are named, regardless of what the will says.

You do not have to tell your children the value of your estate or how much they’re going to receive. You should, however, give them all other information about location of your assets.

Claiming that she repeatedly told all of you that you would each inherit the same amount. What someone tells you doesn’t matter, except in very extreme cases. It’s what’s on paper that counts. (The question asked for the answer which would NOT provide legal grounds for overriding "What’s on paper", or rather, the will.)

There is an unlimited marital deduction. However, regular estate tax rules apply when the second spouse dies.

: Having your attorney write a letter stating that you told her you wanted the beneficiary changed. (Remember the question asked which of the options will NOT allow you to change beneficiaries.) A new will or codicil will allow you to change beneficiaries. To make one or two changes, you don’t need the time and expense of drafting and signing a new will. Create a codicil instead.

Your first spouse gets the retirement plan money. Be glad that you won’t be around when spouse No. 2 finds this out.

Many states recognize wills made in other states. But if you moved to or from a community property state from a state that doesn’t recognize community property, you need a new will.

Anyone can decline to be an executor or co-executor. This is why you should always ask in advance.

Property held as joint tenancy with right of survivorship passes to the survivor outright, regardless of any will provisions.

Your spouse can roll over your retirement plan assets into an IRA, thereby deferring the tax.

Individual state laws dictate who gets what if you die without a will.

You don’t need to inform the IRS, get a Social Security number for the trust or tell the future trustee until you’ve actually created the trust.

: It includes your total assets, less debts, administrative, legal and estate fees.

The probate court decides who is the guardian.

The Taxpayer Relief Act of 1997 set in place a 10-year phase-in period to raise the exemption, culminating at $1 million in 2006.

General power of attorney means that a person can make financial decisions for another person as soon as the documents are certified. Never give anyone a general power of attorney without competent legal advice.

If you own it, it’s in your estate. But even if you own it, as long as you don’t name your estate as beneficiary, life insurance proceeds do escape probate.

A person whose assets are worth more than the amount of the estate exemption should always consult a lawyer.

You can’t disinherit a spouse. You must be divorced. This is to protect the spouse (usually the wife) who has fewer assets from the spouse (usually the husband) who has the majority of assets.

: Omitted children may, in some states, be entitled to what they would inherit if there were no will. In other states, this rule only applies to children born after the will is executed.

: A properly drawn plan includes a will, living will, durable power of attorney and a health care proxy.

The assets of a living trust are not listed in your court’s public records. Many planners believe that this is the biggest misconception people have about living trusts.