Ask Liz Weston

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Liz Weston

Q&A: Amending a living trust

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Dear Liz: My husband and I had a lawyer draw up a revocable living trust and a pour-over will six years ago. We need to amend a couple of areas, and I found it could be done with a form from a self-help legal site. Also, we need to add our home into the trust. My husband doesn’t want to use a lawyer. Can we legally do the amendment and addition of the home without a lawyer?

Answer: Sure. But your heirs may pay for any mistakes you make.

The big red flag is that you haven’t transferred your home to the living trust, even though you’ve had six years to do so. If it’s not in the trust, it will be subject to probate, the court process that the trust is meant to avoid. You need to be extremely diligent if you’re going to try to create a do-it-yourself estate plan, and you’ve already proved that you aren’t. All you’ve done is undermine the estate plan you paid for years ago.

Amending the trust, and having a lawyer help you transfer your home into it, probably will cost a fraction of what you paid originally. It also would give your attorney an opportunity a chance to review the documents in case other changes need to be addressed. A relatively small investment could pay off in peace of mind that the job has finally been done right.

Q&A: How to retrieve old W-2 forms

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Dear Liz: I have several years missing from my Social Security earnings history, dating back to 1999. I have been filing income taxes jointly with my wife but we only kept our files for five years. How do I go about retrieving past income documents like my W-2s? I contacted Social Security and the IRS but can only get tax transcripts dating back to 2009.

Answer: Social Security says you ordinarily have three years to report mistakes. (Actually, being Social Security, it’s “three years, three months and 15 days.”) But you can correct mistakes further back if you have sufficient proof, such as tax forms, W-2s or pay stubs.

You can try contacting old employers to see if they can produce the W-2s you’re missing. Otherwise, write down as much as you can remember about where you worked, including the name of the employer, the dates you worked there and how much you earned. Then contact Social Security again, provide the information you’ve gathered and ask for help in filling in those missing years.

This is one reason why it’s smart to hang onto tax returns indefinitely. Even though you can (and probably should) shred backup documentation after seven years or so, you should keep copies of anything filed with the IRS, including W-2 forms.

Wednesday’s need-to-know money news

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homebuyerToday’s top story: Credit cards that allow you to set spending limits for authorized users. Also in the news: 8 keys to getting approved for a mortgage if you’re self-employed, how to tell if you’re getting a good car deal, and how to find the best mortgage rates and lenders online.

Which Credit Cards Allow You to Set a Spending Limit for Authorized Users?
Setting limits.

Self Employed? 8 Keys to Getting Approved for a Mortgage and Buying a Home
It’s not impossible.

How to Tell If You’re Getting a Good Car Deal
Deciphering the doubletalk.

How To Find The Best Mortgage Rates And Lenders Online
Navigating the online mortgage waters.

Tuesday’s need-to-know money news

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Zemanta Related Posts ThumbnailToday’s top story: Questions you should ask your credit card issuer. Also in the news: Student loan tips your need to know, nearly half of couples split home down payments, and personal finance myths experts want to see disappear.

6 Questions You Should Ask Your Credit Card Issuer
Knowing the hows, whens, and whys.

5 Student Loan Tips You Should Know (But Probably Don’t)
Tips from exit counseling.

Nearly Half of Couples Split Home Down Payment, NerdWallet Survey Finds
Going 50/50.

8 Personal Finance Myths Money Experts Want to See Disappear
Mythbusting.