Good morning different expert here. Please let me know if I do not answer your question thoroughly.
1. Say my mom left $2,000 to my daughter but mom has exhausted most of her life insurance money to the point there's not enough to bury her. My daughter would be paid the $2,000 by the insurance company and I would have what's left. How do I protect myself from having to come out of my pocket to bury my mom when the $2,000 that my daughter is given is needed for her burial expense.
Life insurance will be paid directly to the beneficiary if named on the policy and you will have no control over that. If there is no named beneficiary, it is paid into the estate. But you did say that the insurance is to be paid to the funeral home, so the funeral home will pass the rest on to the estate if there is no named beneficiary and if there is a beneficiary listed the funeral home will cut a check to them. If it is made to the funeral home, the funeral home will pay all expenses before giving you or your daughter their share and if there is not $2,000 left, your daughter will not be paid from that insurance policy.
2. I can't control the estate of the home she is living in now because her husband left it to her as a life-time home. Once her life is over that contract is null and void so how can I protect all inside the home assets, including things they never took out the house 12 years ago.
Once probate is opened, you would be able to get an order to clean out the house, if you need one. Even though she had a life estate in the home, the personal property remains her’s or her estate’s and his children do not have the right to it.
3. She wants her life insurance to be 90% to myself and 10% to my daughter. What happens if her sickness forces her to use most of her money in the bank and she draws off her life insurance policy just to survive as she is not working and only getting a social security check, and the money that she would have given to my daughter is needed to bury her.
As I stated earlier, unless there are named beneficiaries on the policy, it will be paid into the estate and then disbursed after all expenses are paid.
4. Also, she wants my sister to have $2,000 from her bank money or insurance policy. What happens after I give out this money and there is not enough money to bury her. How can I get around this pitfall in her will before she goes to a lawyer to have it executed.
Simple matter, all final expenses and funeral expenses are to be paid prior to anyone getting cash from the estate.
Who is the executor of her estate? I have power of attorney but so does my daughter.
Executor of the estate is whomever she names in her will. Power of attorney becomes void upon her death. She may name the two of you as co-executors or you as executor and your daughter as a successor executor.
The life insurance will be paid to the funeral home and what's left over will be paid to the beneficiaries. What after burial expenses $1,000 was paid to me, yet $2,000 was paid to my daughter. How do I stop her from getting the bulk of the remaining money.
The funeral home will only pay to your daughter or you, if you are named as beneficiaries on the policy; otherwise they will pay it to the estate. If your daughter is named to get a set amount she should be paid that from the estate before the remainder is divided up. Legally, a named dollar amount is a “specific gift” and those are paid out in full before the “remainder” or “residual estate” is paid or divided, so there are instances where someone will get their full amount and the takers of the remainder get nothing. If your mother may state that your daughter gets “10% of the residual estate but no more than $2,000”.
Should you have any followup questions, do not hesitate to let me know.