What is a Will?
A legal document specifying the distribution of property, and care of minors after death
What are the requirements for a will & what must a person demonstrate ?
The testator must demonstrate they are of sound mind and legal age
What are the will-signing requirements ?
- Must be in writing
- Signed by testator
- Signed by two witnesses
What happens if a witness inherits in the will?
They are disinherited to maintain the will’s validity
What is an estate?
The legal title holding someone’s property upon death
What is a decedent & what is an executor?
- Decedent - Deceased person
- Executor - Handles estate per will
What does it mean to be of sound mind?
Knowing two things and wanting to do something
What is probate? & Name three areas of law that probate covers
- Legal process of administering a will
*Wills, Trusts, and estate disputes
Ways to avoid probate 1/5
Own nothing at death: Transfer all assets during your lifetime
* Gift your car and house to your children before passing
Ways to avoid probate 2/5
Transfer on Death (TOD): Automatically transfers assets to a named beneficiary upon death
*TOD designation on a brokerage account
Ways to avoid probate 3/5
Payable on Death (POD): Bank account funds go directly to a named beneficiary
* Savings account POD to a spouse
Ways to avoid probate 4/5
Named Beneficiaries: Assign beneficiaries to life insurance, retirement accounts
* Name your daughter as a life insurance beneficiary
Ways to avoid probate 5/5
Trusts: Place assets in a trust managed by a trustee for beneficiaries
* Create a revocable living trust for your property
What is a pretermitted heir?
Child omitted unintentionally from a will inherits their share under state law
How much money can you give tax-free to someone?
$13,610,00
$16,000/year per recipiant
What is an insurable interest related to life insurance?
Must have a financial or familial stake in the insured
What happens when the insured turns 100 years old?
Policy pays the insured
What is a living will?
Stated medical care preferences if incapacitated
What is guardianship over a person & what is guardianship over an estate?
- Person - Manages personal decisions
- Estate - Manages finances
What is HCPOA
Health Care Power of Attorney: Authorizes someone to make medical decisions if you’re incapacitated
What is DPOA?
Durable Power of Attorney: Authorizes someone to manage finances and legal matters, remaining valid if you’re incapacitated
What is a business continuity plan?
A document outlining actions a company will take to maintain critical operations during and after an unexpected disruption like a natural disaster
How do you apply a continuity plan?
1) Identify problem.
2) Plan steps to maintain operations.
3) Test regularly with drills to fix gaps.
What is COBRA?
Consolidated Omnibus Budget Reconciliation Act: Allows continuation of employer health insurance after job loss, typically for 18 months
