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Planning Beginner: Understanding Estate Planning

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1.
If one dies without a will (intestate), the federal laws of intestacy determine how the deceaseds estate will be distributed.
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False. If one dies intestate, it is the state laws of intestacy that govern, not federal law.
2.
A simple will is a good way to make bequests with "strings attached."
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False. Trusts are used to make bequests with "strings," since they can be pulled by a trustee.
3.
A will is not of much value to someone without a great deal of property.
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False. Families often argue about small amounts of money or even trivial household items.
4.
Under the laws of most states, the estate of a married person who dies without a will and has no children goes entirely to his or her spouse.
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False. Only about half the estate generally is transferred to the surviving spouse under state law in this situation.
5.
One advantage of life insurance is that the policy proceeds can be payable directly to the person named as beneficiary, thus bypassing probate court.
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True. The policy payoff can promptly go to whomever you direct, with no probate court involvement, upon proof of your death.