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.
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.
3.
Which would be the best device for distributing assets after death when certain conditions must be met?
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Trust. A trust document can be drafted to set forth a personalized combination of specific instructions, with or without discretionary judgments allowed to your trustee, so that money is given to whom you want, when, and for the purposes you specify.
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.
Which of the following is a drawback to strictly "do-it-yourself" estate planning?
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Self-help resources dont always deal with details, contingencies and specific issues that are important in your situation. Every family is different, and while self-help resources are valuable, by design they must deal in generalities.