Ask Liz Weston

Get smart with your money

Liz Weston

Wednesday’s need-to-know money news

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payday-loansToday’s top story: Financial aid tips for procrastinators. Also in the news: Auto insurance in the driverless car era, payday alternative loans, and six ways your teen driver will affect your wallet.

4 Financial Aid Tips for College Procrastinators
Don’t waste any more time.

If You Hate Auto Insurance, You’ll Love Driverless Cars
A change in who’s to blame for accidents.

What Is a Payday Alternative Loan?
Avoiding the traditional payday loan trap.

6 Ways Your Teen Driver Will Affect Your Wallet
It’s more expensive than you’d think.

Tuesday’s need-to-know money news

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Pile of Credit CardsToday’s top story: What yo look for in a credit card for bad credit. Also in the news: How to decide whether you should save, invest, or pay off student loans, how to spend less money in your 20s, and why next year’s tax refund might be late.

What to Look for in a Credit Card for Bad Credit
Pay close attention to fees.

Should I Save, Invest or Pay off Student Loans?
Using your money wisely.

10 Ways to Spend Less in Your 20s
The more you can save the better.

Adjust Your Withholding Now Because Next Year’s Tax Refund Might Be Late
Be prepared to wait.

Q&A: Naming co-executers

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Dear Liz: Is it legal for my parents to appoint me co-executer of their estate, along with my sister, without asking me first if I was okay with this, and keeping me as co-executer after I told them I do not want the responsibility? My sister is more intelligent and competent than I am and would do a better job of this by herself.

Answer: Your parents can name pretty much anyone they want, but that doesn’t mean you’re legally obligated to accept the role when they die. You’ll have the right to decline.

If your parents don’t name an alternate, your sister may be allowed to serve on her own or another executor may be appointed by the court, depending on how the will is written.

Obviously, your parents are being short-sighted by trying to force you to serve when you’ve made your feelings clear. Being an executor can be a time-consuming, complex and often thankless task that shouldn’t be foisted on anyone who’s not willing. If they don’t trust your sister to function alone, they should name someone else—and get that person’s permission before they do. It’s smart to name an alternate or two besides, in case their choices also decide they don’t want to serve.

Q&A: Social Security survivors benefits

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Dear Liz: My husband and I were married after dating for over four years, but he died suddenly on our honeymoon. When I got home, I was told by our local Social Security office that I did not qualify for survivors benefits because we were not married long enough. I am going to be 66 next month and he was already receiving Social Security benefits. People have been advising me to look into getting this marriage benefit, even by contacting my Congressional representative, since I don’t plan to apply for my own benefit until I’m 70 and could really use the survivor benefit now.

Answer: Social Security isn’t likely to help you cope with your devastating loss. The rule that couples have to be married for at least nine months is meant to prevent deathbed marriages designed just to give the survivor benefits.

There are some exceptions to the nine-month rule, such as when the death was accidental or in the line of duty for service members, or if you had a child together. The exceptions are outlined on the Social Security’s site: https://www.ssa.gov/OP_Home/cfr20/404/404-0335.htm

Q&A: Removing a quit-claim house mortgage from your credit

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Dear Liz: I recently divorced and quit-claimed my house over to my ex-wife. She has been making all the payments on time but the mortgage still shows up on my credit. Because of this, I can’t borrow as it is considered my indebtedness still. Do you know of anyway of having it expunged from my credit reports?

Answer: She will have to refinance the mortgage in her own name to get you off the loan. The contract you signed with the lender otherwise remains in force and isn’t affected by the divorce agreement.

It’s good that she’s making payments on time, since a single skipped payment could trash your credit scores.

It’s unfortunate your attorney didn’t advise you of the consequences of quit-claiming the property while remaining on the mortgage. It’s rarely a good idea to give up an asset while keeping the liability. A better approach is to separate your credit before the divorce is final. That means closing all joint accounts and transferring the debt to separate accounts in the name of the person who will be responsible for the payments. If your ex wasn’t able to get approved for a refinance, the house could have been sold so that you wouldn’t be on the hook indefinitely.

Friday’s need-to-know money news

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Financial-PlanningToday’s top story: Financial planning for the 21st century. Also in the news: Tips for buying life insurance with a pre-existing condition, mistakes people make when buying furniture, and the best new car deals for Labor Day weekend.

Financial Planning for the 21st Century
Catching up with the future.

7 Tips for Buying Life Insurance With a Pre-Existing Condition
Working your way through a complicated system.

6 Mistakes People Make When Buying Furniture
Pay close attention to financing.

4 best new car deals for Labor Day weekend
Getting the most bang for your buck.