DEAR BRUCE: My mother has Alzheimer's disease. There are several life-insurance policies that she took out years ago, but with her diminished memory loss, she can't help locate them. We want to make sure that the policies are current. Is there any way to glean this information from the state (or anywhere else)? Unfortunately, we don't live in the same state, so we don't have access to her files -- M.S., Exton, Pa.

DEAR M.S.: I know of no state depository that could provide this information. You are going to have to travel to her house and search through her records. With her diminished capacity, even if her record keeping is less than thorough, hopefully she kept up with the payments. In the absence of that, the only other place to look is the escheat division in her state. It may well be that the policy was considered abandoned and turned over to the state for its use. If you can prove your right to the monies, the original balances will be turned over to you.

DEAR BRUCE: I have a neighbor that has been exceptionally kind to me over the years. There is no reason to go into a lot of detail, but suffice it to say, she has made my life much more pleasant. I wish to remember her in my will, but my husband tells me that it is illegal to leave money to anyone outside of your spouse if the spouse is still living. Can this be true? -- Reader, via e-mail

DEAR READER: Nothing could be further from the truth. In most states, you are obliged to leave at least one-third of your assets to your spouse, but what you do with the rest is entirely up to you. If you want to leave one-third to your pet sitter or hairdresser or a kind friend, you can. Again, it is important to have a competent attorney draw up the will in conformance with state laws, reflecting your wishes.

DEAR BRUCE: I have seen will kits advertised for just a few dollars. In fact, you can get them online or at office-supply stores. I certainly can afford an attorney, but why spend the extra money unnecessarily? I've heard this is just as good as having an attorney prepare the will for you. -- I.P., via e-mail

DEAR I.P.: I have said it hundreds of times and STILL people want to cut corners on their wills. I'll continue to say it: The will kit is something to be avoided at all costs. Very possibly, if you use one of these kits, your will would be valid -- BUT what happens when it's not? Obviously, you are not around to clarify your wishes. All of your hard work over the years creating these assets would be in question. Doesn't it make sense to spend a couple hundred dollars to make sure that your wishes are properly administered?

Interested in buying or selling a house? Let Bruce Williams' "House Smart" be your guide. Price: $14.95, plus shipping and handling. Call: (800) 337-2346. Send your questions to Smart Money, P.O. Box 2095, Elfers, FL 34680, or e-mail bruce@brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.