Dear Liz: You recently answered a question about a mother who gave her home to her two children shortly before she died. You wrote that when a home is gifted, the recipients also get the original owner’s tax basis and thus there is no step up in tax basis at death. However, if the mother continued to live […]
Recent Blog Posts
This week’s money news
This week’s top story: Smart Money podcast on recession anxiety, and retirement savings vs. mortgage payoff. In other news: 5 tax tips for older adults, paying taxes for a bank bonus or interest, and how a tax extension can delay your business loan application. Smart Money Podcast: Recession Anxiety, and Retirement Savings vs. Mortgage Payoff […]
How to protect parents from financial scams
When a scam artist called Cameron Huddleston’s mom to tell her to wire money in order to claim a prize, Huddleston had to intercept the calls. Her mom, who had been diagnosed with Alzheimer’s, was convinced she had to wire the money as soon as possible. “That was a wake-up call for me. If you […]
Q&A: When Social Security isn’t enough
Dear Liz: I am 87, divorced for 45 years, never remarried. I applied for my 93-year-old former husband’s Social Security support and qualified. I was refused by the local Social Security office. I really don’t understand why. I am a COVID long-hauler and I get confused. I was a stay-at-home mom until my kids were in […]
Q&A: Finding free tax help
Dear Liz: You recently mentioned the AARP Foundation Tax-Aide Program as a resource for getting help with tax returns. I just want to point out that there are other, IRS-sponsored programs that provide free income tax assistance to the elderly and low-income taxpayers. These programs are Volunteer Income Tax Assistance (VITA) and Tax Consulting for the Elderly (TCE). The site […]
Q&A: Should extra cash go to retirement or emergency savings?
Dear Liz: I have an excessive amount of money in my bank checking and savings account (about $20,000 in each) and need to know where to invest it. My financial planner advised putting it in my 401(k), but I can’t transfer a chunk of money, I can only increase the percentage I contribute (which is currently […]