Thursday’s need-to-know money news

Today’s top story: Take control now with advance medical directives. Also in the news: How to transfer a credit card balance in 3 simple steps, how to set up a 50/20/30 budget, and tax filing tips for college students.

Take Control Now With Advance Medical Directives
Some of the most important decisions you’ll ever make.

How to Transfer a Credit Card Balance in 3 Simple Steps
What to do when you find a better rate.

How to Set Up a 50/20/30 Budget
Based on three easy categories.

Tax-Filing Tips for College Students
Navigating the student loan maze.

Wednesday’s need-to-know money news

Today’s top story: Is identity theft protection worth it? Also in the news: The perks of cutting spending, why good credit matters even if you don’t plan to borrow, and how to get a replacement economic impact payment card.

Is identity theft protection worth it?
Valuing your online privacy.

The perks of cutting spending
It doesn’t have to hurt.

Why Good Credit Matters — Even if You Don’t Plan to Borrow
Prepare for the unexpected.

How to Get a Replacement Economic Impact Payment Card
That random card you threw out might have been your stimulus payment.

Take control now with advance medical directives

If you get COVID-19 and struggle to breathe, would you want to be put on a ventilator? Whatever your answer, ask yourself another question: Who would make your wishes clear if you couldn’t speak for yourself?

Advance directives — an umbrella term that includes living wills and health care proxies or powers of attorney — are legal documents that all of us need but that many of us don’t have. A living will allows you to tell your loved ones and medical providers what kinds of medical care you want at the end of your life. Health care proxies or powers of attorney allow you to designate someone to make medical decisions for you if you can’t communicate.

In my latest for the Associated Press, why it’s important to have both documents regardless of how healthy you may be right now.

Monday’s need-to-know money news

Today’s top story: Still undecided about college this fall? Know these 4 options. Also in the news: A new episode of the SmartMoney podcast on identity theft protection, 4 store credit cards with the best rewards, and how to prioritize high-interest debt payments.

Still Undecided About College This Fall? Know These 4 Options
You still have time.

SmartMoney Podcast: ‘Is Identity Theft Protection Worth It?’
Making yourself a smaller target.

Try these 4 store credit cards for the best rewards in this economic environment
Stretching your dollar.

How to Prioritize High-Interest Debt Payments
The type of debt is important.

Q&A: Getting sister’s house without a will

Dear Liz: When I retired in 2018, I rolled over my 403(b) teachers retirement account into a traditional IRA and made my sister sole beneficiary. I sent her a copy of that beneficiary statement showing her name, her percentage (100%), and my account number. My sister later told me in a phone call that she wished to bequeath me her house should she predecease me. She explained she didn’t have a will but she made her feelings known to our older brother. Even if I were on speaking terms with our older brother, I would find this arrangement naive. Knowing my sister, she actually believes this method is the right way to proceed with her wishes. I’m asking you to be Dear Abby, perhaps, but what do I do?

Answer: You can explain to her that if she doesn’t have a will, the laws of her state will determine who gets her house regardless of what she intended. If your sister does not have a spouse or children, and your parents are dead, you and your brother would probably inherit the home as well as the rest of her estate. You would have to negotiate what to do with the house, which could be difficult if you two still aren’t speaking.

If you can’t get her to write a will, there may be another option. Many states allow “transfer on death” deeds, which are forms that allow people to name a beneficiary for their home. This would ensure that the house is left to you and that it avoids probate, the court process that otherwise follows death.

Q&A: Where’s my refund?

Dear Liz: I filed a paper 2019 federal tax return in mid-February. It’s been more than nine weeks, and they haven’t electronically deposited my refund yet. Last week, I called the “Where’s My Refund” IRS number and got an automated response that basically they couldn’t help me. I then called the taxpayer advocate number listed in the IRS booklet, and they couldn’t help me but transferred me to the IRS’ toll-free number. After taking my information, the service person couldn’t find my return and suggested I resubmit my forms. The whole process took over two hours. Then my brother told me IRS offices are closed or have limited staff and they aren’t processing the tax returns. Why don’t they just say that at the beginning of all of their messages, instead of saying you should get it within six weeks of filing?

Answer: Over the last decade, Congress has cut the IRS’ budget by more than 20% after factoring in inflation, even as the population grew and tax law got ever more complicated. The agency was limping along with ancient technology and too few people to help the public even before the pandemic sent most of its workers home, without the ability to telecommute.

The agency has been trying to recall its workforce as quickly as it can, but there is a truly massive backlog of paper returns that has yet to be processed. Sending out stimulus relief checks has taken priority, and that Herculean effort is still in process.

You may be frustrated by what you perceive as poor customer service, but this situation didn’t develop overnight and taxpayers are reaping what they sowed, or at least reaping what their lawmakers sowed. You should let those lawmakers know how you feel if you want this to change.

And you should change, as well. It is not smart to send a tax return through the U.S. mail. Electronic filing is a much more secure alternative, and it’s quicker. With direct deposit, you can get your refund within days. Even with the pandemic, most e-filers have gotten their refunds promptly.

Q&A: Good news about your coronavirus stimulus money: It doesn’t count as income or an asset

Dear Liz: I have a question about a recent answer you gave. The question was whether stimulus payments count as income for people who get Medicaid or Supplemental Security Income. Your — correct — answer was that they don’t, of course, but you seemed to gloss over the fact that even though this payment was not “income,” it would still count as an asset in the recipient’s bank account. The recipient’s assets are limited to $2,000 by the Medicaid program.

Answer: The relief payments do not count as income or as an asset. The money is excluded from the recipient’s resources for 12 months.

Friday’s need-to-know money news

Today’s top story: Why good credit matters even if you don’t plan to borrow. Also in the news: An expert weighs in on how to travel safely, 4 options if you’re undecided about college this fall, and how to amend a tax return online.

Why Good Credit Matters — Even if You Don’t Plan to Borrow
Good credit provides a safety net in a crisis, and it can reduce bills and make you look better on applications.

Ask an Expert: Is Any Travel Safe?
Can we safely beat our cabin fever?

Still Undecided About College This Fall? Know These 4 Options
Things will look a bit different.

How to Amend a Tax Return Online
You no longer need to mail in corrections.

Thursday’s need-to-know money news

Today’s top story: Find free, solid money advice in uncertain times. Also in the news: 9 budget-friendly ideas for a staycation, how unpaid debt is handled when a person dies, and what to do if you get a letter about unemployment benefits you never requested.

Find Free, Solid Money Advice in Uncertain Times
Many organizations are offering free virtual consultations to help stressed consumers navigate financial decisions.

9 Budget-Friendly Ideas for a Memorable Staycation
Travel plans are changing.

Here’s how unpaid debt is handled when a person dies
Who’s responsible?

What to Do if You Get a Letter About Unemployment Benefits You Never Requested
Don’t throw it out.

Find free, solid money advice in uncertain times

If you have money questions — and who among us doesn’t right now? — there are plenty of people willing to offer advice: friends, relatives and random strangers on the internet.

Finding someone who knows what they’re talking about, and who isn’t trying to take advantage of you, can be tougher. Fortunately, several groups of credentialed, trustworthy financial advisers are stepping up to offer free help.

In my latest for the Associated Press, how to find the solid advice you need.