Ask Liz Weston

Get smart with your money

Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: More than half of travelers have the same New Year’s resolution. Also in the news: Saving on a new car from the factory, how to travel to Super Bowl LVI on a budget, and how to help your parents navigate health care in retirement.

More Than Half of Travelers Have the Same New Year’s Resolution
Remote work options will enable many people to travel in ways they couldn’t in the past.

Order a New Car From the Factory and Save
Waiting a few weeks or months gets you the vehicle you want, and perhaps a better price.

How to Travel to Super Bowl LVI on a Budget
If you splurged on tickets to the big game, here’s how to save on your flights and hotel.

How to Help Your Parents Navigate Health Care in Retirement
Try these tips to be the best advocate for your parents when and if they need your help.

Tuesday’s need-to-know money news

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Today’s top story: 5 banking facts to fortify your finances. Also in the news: Taking a new look at banking in 2022, 6 predictions for small businesses, and how to stop wasting your gift cards.

5 Banking Facts to Fortify Your Finances in 2022

2022. New year. New you. New look at banking? It would be a smart move.
Save for what makes you feel good in 2022
Expenses that don’t put a roof over your head, but do provide joy, rejuvenation and other hard-to-quantify benefits are worth saving for, too.

How will small businesses survive 2022? 6 predictions on what they’ll need for success.
It’s been a rough couple of years for many small businesses—what does the future hold?

How to Stop Wasting Your Gift Cards
Stop letting them collect dust in your wallet.

Monday’s need-to-know money news

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Today’s top story: How to help your parents navigate health care in retirement. Also in the news: What to buy (and skip) in January, borrow a 2022 money goal from a finance nerd, and would you relocate for $10K?

How to Help Your Parents Navigate Health Care in Retirement
Try these tips to be the best advocate for your parents when and if they need your help.

What to Buy (and Skip) in January 2022
New tips for the new year.

Need a 2022 Money Goal? Borrow One From a Finance Nerd
Set yourself up for success by setting reasonable goals, breaking them down into smaller steps and being persistent.

Would You Relocate for $10K? Should You?
Before you pack your bags, read the fine print, talk to your employer and assess your own deal-breakers.

Q&A: When pension trumps Social Security

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Dear Liz: I am in my third marriage. My first two marriages each lasted 10 years. My spouses worked in jobs requiring them to pay into Social Security. I am currently retired (since 1999) and worked for a city government my entire career. I currently receive a pension from the city. Am I entitled to receive anything from Social Security for the time I was married to my previous spouses? It seems only fair since I had to pay each of them spousal support.

Answer: That’s a novel argument! Alas, the Social Security system doesn’t care about the details of your divorce decrees.

You can call Social Security and ask if you’re eligible for a benefit, but don’t get your hopes up if your pension comes from a job that didn’t pay into Social Security. A provision known as the government pension offset probably would wipe out any divorced spousal or divorced survivor benefit you might receive.

Q&A: Taxes on retirement account withdrawals

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Dear Liz: I would love to give my grandchildren money, but I don’t want to pay the income tax on withdrawals from my IRA or 401(k). Will they get it tax-free when I die?

Answer: Unfortunately, no.

Withdrawals from retirement accounts are generally taxable, whether the person making the withdrawals is the original contributor or an heir. Furthermore, non-spouse beneficiaries of retirement accounts generally must withdraw the money within 10 years.

Q&A: Adding sister to a house deed

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Dear Liz: A reader recently asked about giving a rental house to the sister that has been living in it for 10 years. You mentioned that the reader would have to file a gift tax return since there is a max of $15,000 for a gift exemption. Couldn’t the owner simply add the sister to the title so when they pass the sister becomes the sole owner of the house without having to deal with taxes, probate, etc? Similarly, if the sister dies first the current owner would retain ownership to give, sell, donate as they choose.

Answer: Adding the sister to the deed would be considered a gift, so the reader would still have to file a gift tax return.

Owning the home together would avoid probate and give the surviving sister a tax break, and that half of the house would get what’s known as a step-up in tax basis at the first sister’s death. Another option, if the reader wanted to retain ownership, would be a transfer-on-death deed, which is available in many states. The reader was clear that she wanted to give an outright gift, but she could consult a real estate or estate planning attorney about other options.