Dear Liz: I own a house with my longtime boyfriend. If one of us dies, how does the capital gains step-up affect the other? Answer: The deceased partner’s share of the home will get a new basis for tax purposes. The survivor’s share will not. Tax basis helps determine how much of a capital gains tax bill […]
Recent Blog Posts
Q&A: Estate settlement is tougher without ready cash
Dear Liz: My friend died unexpectedly. I am helping her stepson, who is the successor trustee for her living trust, to get the estate settled. Her estranged son was a beneficiary on her main checking account and took the money as soon as she died, which was his right. However, it has taken three months for […]
Q&A: Yes, you can donate IRA money with a check–but should you?
Dear Liz: Please have another go with respect to answering a recent question about making qualified charitable distributions from an IRA using a debit card, which is something we have also wondered about. Several of the large mutual fund companies tell their customers that checks from their IRA account going to qualifying charities will qualify as […]
Q&A: Should I borrow against my life insurance to travel?
Dear Liz: My wife and I live on her pension, my Social Security, and enough dividends from our blue-chip stocks to cover our daily living expenses. But at our age (80), we would like to spend a little more in order to travel. We will have to borrow the money for that. I see that I […]
Q&A: How to track down lost savings bonds
Dear Liz: My mother passed away two years ago. She left a small mountain of paperwork which my brother, sister and I have finally started to sort through. Among the surprises that we have found is a receipt from a bank for the purchase of $4,500 of U.S. government savings bonds. The date of purchase […]
Q&A: Bequests to household employees can trigger fights, taxes
Dear Liz: Please consider mentioning employers who haven’t forgotten long-time employees in their estate planning. Caregivers and domestic workers may work for families, the elderly or seriously ill patients for decades. When there is a death, the estate or family members rarely remember these workers who feel their effort must have meant very little not […]