Ask Liz Weston

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Liz Weston

Q&A: Pitfalls of unequal will distributions

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Dear Liz: You’ve written that when writing their wills, parents should be careful about leaving unequal distributions to their children. What wasn’t mentioned was that a person could have a “good” child and a “bad” one. The “bad one” has never done a thing for the parent, such as inviting her to the child’s home at Thanksgiving or Christmas, and only visits the parent in the summer when the parent just happens to live at the beach. The “good” one is very attentive and visits the parent even in winter, and so on. What is your thinking in inheritance in this case?

Answer: It’s your money, and there’s no one right way to divide an estate. However, it’s disturbing that your assessment of your children seems to be based solely on how much attention you get.

It’s possible one child acts more selfishly or thoughtlessly than the other. It’s also possible that you are difficult to please, and one child understandably limits the time she spends trying to do so.

Thursday’s need-to-know money news

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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

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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

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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

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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

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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.