Yes, if you own the policy at the time of your death or gave it away within three years of your death, or if you retained "incidents of ownership" such as the power to change the beneficiary. An irrevocable life insurance trust can remove the proceeds from your estate.
If your income is low enough, you may not owe any income tax, but self-employed persons must pay self-employment tax on all earned income. I agree that generally accountants charge less per hour and a good accountant should be able to help you get things straight.
Two. But I believe you are making a mistake in preparing your own will, as there are likely many legal issues that you will fail to cover or deal with adequately. Using the services of an estate planning lawyer can save your beneficiaries time, trouble and potentially thousands of dollars in legal fees after your death.
The only way to make sure that it can be accomplished is to have your husband sign a valid postnuptial agreement waiving all of his rights to the property. Because of your marriage he has certain rights to the property upon your death regardless of what your will or trust provides.
The type of lawyer who can assist you is generally referred to as an estate planning or trust and estate attorney. It's important that you choose one who is experienced and can advise you about tax issues as well as the need for a prenuptial agreement.
If the power of attorney gives you authority to sell, you can legally sell the property. However, the amount of the sales proceeds that equals the actuarial value of the life estate will be considered your mother's property, and will most likely disqualify her for Medicaid and will need to be spent before she qualifies again.
Most, if not all states require two witnesses. Beneficiaries should not be witnesses or they will lose their right to receive anything under the will. I would encourage your father to see a lawyer to ensure that his will is properly prepared. Homemade wills are never a good thing.