John, who is unmarried and has a terminal disease, wants to leave his best friend, Tina, with $25,000 at his death. Which of the following methods is the least effective way of doing this?

The least effective way for John to leave $25,000 to Tina upon his death is to include it in his letter of last instructions. While a letter of last instructions can provide guidance and express desires, it is not legally binding and does not create any enforceable obligation to transfer funds. This means that John's intent to leave money for Tina would not be legally guaranteed, and there could be no guarantee that the funds would be distributed as he intended.

In contrast, utilizing life insurance allows for a straightforward beneficiary designation, ensuring that upon his death, the insurance payout goes directly to Tina. Setting up a payable on death (POD) designation for a bank account allows the specified sum to go directly to Tina without going through probate. Similarly, creating a trust can effectively manage and transfer assets, providing a clear legal framework for ensuring Tina receives the money. These methods are more reliable and ensure that John's wishes are carried out.