• Skip to main content
  • Skip to primary sidebar

Ask Liz Weston

Get smart with your money

  • About
  • Liz’s Books
  • Speaking
  • Disclosure
  • Contact

Liz Weston

Q&A: Who inherits when estranged spouse dies?

August 9, 2021 By Liz Weston

Dear Liz: I lost my husband a year ago. We had been married since 1997 but separated 10 years ago. Does the house belong to me or my 22-year-old son? Also, how do I find out if he had life insurance without being charged a lot? His girlfriend said he did.

Answer: The two most important factors here are whether you were legally separated and whether your husband made a will. If you were legally separated, there may have been an agreement approved by a judge that could affect how assets are divided. If the separation was informal, then the law typically treats you as if you were still married.

If your husband had a will, that would dictate who gets what. If he died without a will, then state law determines how to divide what’s left after his final expenses and creditors have been paid. When someone is married and has children with the current spouse, typically the entire estate would go to that spouse. Otherwise, half usually goes to the spouse and the rest is split among other heirs, such as children from another union.

This assumes the house wasn’t jointly owned with someone else, such as your son or the girlfriend. Property held in joint tenancy, tenancy by the entirety, or community property with right of survivorship will automatically pass to the other owner at death.

“Consulting with an attorney or trusted CPA, checking title to the real property and reviewing mortgage statements should be done to help determine their rights and how to proceed,” said estate planning attorney Jennifer Sawday of Long Beach.

If you would be the beneficiary and probate hasn’t been started, consider hiring a probate attorney to put that process in motion. The person settling his estate can look through his bills and other paperwork for evidence of life insurance, or you can try the life insurance policy locator maintained by the National Assn. of Insurance Commissioners.

Filed Under: Inheritance, Q&A Tagged With: Inheritance, q&a

Q&A: Here’s a retirement dilemma: Pay off the house first or refinance?

August 9, 2021 By Liz Weston

Dear Liz: My husband and I are retired, with enough income from our pensions and Social Security to cover our modest needs, plus additional money in retirement accounts. We have owned our home for 35 years but refinanced several times and still have 15 years to go on a 20-year mortgage.

With rates so low, we were contemplating refinancing to a 15-year mortgage just for the overall savings on interest, but we started thinking about the fact that, at 67 and 72 years old, it’s unlikely that both of us will survive for another 15 years to pay off this loan. Since that’s the case, we’re now thinking about taking out a 30-year mortgage, with monthly payments $700 or $800 less than what we currently pay.

Our house is worth around 10 times what we owe on it, and if we had to move to assisted living we could rent it out at a profit, even with a mortgage. We also each have a life insurance policy sufficient to pay off the balance on the mortgage should one of us predecease the other.

I know that conventional wisdom says that we should pay off our mortgage as quickly as we can. But an extra $700 or $800 a month would come in handy! Am I missing something? Is this a bad idea?

Answer: Answer: Not necessarily.

Most people would be smart to have their homes paid off by the time they retire, especially if they won’t have enough guaranteed income from pensions and Social Security to cover their basic living expenses. Paying debt in retirement could mean drawing down their retirement savings too quickly, putting them at greater risk of ultimately running short of money.

Once people are in retirement, though, they shouldn’t necessarily rush to pay off a mortgage. Doing so could leave them cash poor.

You are in an especially fortunate position. Your guaranteed income covers your expenses, including your current mortgage, and you have a way to pay off the loan when that income drops at the first death. (The survivor will get the larger of the two Social Security checks. What happens with the pension depends on which option you chose — it may drop or disappear or continue as before.) Even with a mortgage, you have a large amount of equity that can be tapped if necessary.

So refinancing to a longer loan could make a lot of sense. To know for sure, though, you should run the idea past a fee-only, fiduciary financial planner who can review your situation and provide comprehensive advice.

Filed Under: Mortgages, Q&A, Real Estate Tagged With: mortgage, q&a, refinancing, Retirement

Thursday’s need-to-know money news

August 5, 2021 By Liz Weston

Today’s top story: Should you pack your COVID-19 vaccine card for your next trip? Also in the news: A Travel Nerd on Basic Economy, 4 cash-raising pitfalls, and what to do if you haven’t received your child tax credit.

Should You Pack Your COVID-19 Vaccine Card for Your Next Trip?
Travelers likely won’t need to prove their vaccination status for most trips, but there are some exceptions.

Ask a Travel Nerd: What’s the Deal With Basic Economy?
Every airline has different rules, but you usually can’t change or cancel basic economy fares.

4 Cash-Raising Pitfalls (and Better Options)
When you need cash fast, stop briefly to understand which options can hurt you more in the long term.

What to Do If You Haven’t Received Your Child Tax Credit
Don’t panic just yet.

Filed Under: Liz's Blog Tagged With: basic economy class, cash-raising, child tax credit, covid vaccine card, travel

Wednesday’s need-to-know money news

August 4, 2021 By Liz Weston

Today’s top story: 7 ways to manage Medicare drug costs. Also in the news: Prep for hiring your first employee with these 6 steps, how to have a retirement worth saving for, and how to buy and sell a house at the same time.

7 Ways to Manage Medicare Drug Costs
Medicare beneficiaries with pricey drugs can face high out-of-pocket costs. Here are some ways to lower the tab.

Ready to Hire Your First Employee? Prep With These 6 Steps
To hire successfully, business owners need to understand their finances, find professional support and more.

How to Have a Retirement Worth Saving For
A happy retirement isn’t all about money. Make a plan for health, social connection and day-to-day enjoyment.

How to Buy and Sell a House at the Same Time

Filed Under: Liz's Blog Tagged With: buying a house, hiring tips, Medicare drug costs, Retirement, selling a house

4 cash-raising pitfalls (and better options)

August 4, 2021 By Liz Weston

If you’ve got more bills than money, the usual advice is to trim expenses and find additional income. But some ways of raising cash can be a lot more expensive than others. In my latest for the Associated Press, four that should be avoided, if possible, and what to consider instead.

Filed Under: Liz's Blog Tagged With: cash-raising, pitfalls, tips

Tuesday’s need-to-know money news

August 3, 2021 By Liz Weston

Today’s top story: What 6 money pros wish they’d known about credit cards. Also in the news: A new episode of the Smart Money podcast with Michelle Singletary, 3 ways to thrive with teenage workers in a tight job market, and when it can be a good idea to co-sign for your young adult.

What 6 Money Pros Wish They’d Known About Credit Cards
These certified financial planners wish they’d gotten comfortable using credit cards earlier than they did.

Smart Money Podcast: Getting Ahead of Your Next Money Crisis With Michelle Singletary
An interview with the author of “What to do With Your Money When Crisis Hits”

3 Ways to Thrive With Teenage Workers in a Tight Job Market
Capitalize on off-hours, nurture fresh skills and embrace newness to make the most of young workers in your business.

When It Can Be a Good Idea to Co-Sign for Your Young Adult
A look at the pros and cons.

Filed Under: Liz's Blog Tagged With: co-signing, Credit Cards, Michelle Singletary, money pros, Smart Money podcast, teenage workers

  • « Go to Previous Page
  • Page 1
  • Interim pages omitted …
  • Page 169
  • Page 170
  • Page 171
  • Page 172
  • Page 173
  • Interim pages omitted …
  • Page 782
  • Go to Next Page »

Primary Sidebar

Search

Copyright © 2025 · Ask Liz Weston 2.0 On Genesis Framework · WordPress · Log in