Ask Liz Weston

Get smart with your money

Q&A

Q&A: Downside of unused credit cards

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Dear Liz: In the past, you have recommended not canceling credit cards because doing so can hurt credit scores. Over the years, my husband has signed up for at least a dozen credit cards, eight of which we never use and have not used for as long as 10 years. He signed up for another card recently because it offered attractive cash rewards. Is having so many credit cards advisable and safe? Does it make us more vulnerable to identity theft? Without hurting our credit scores, may we discontinue the older cards we have stopped using? Is there any drawback to having multiple, perhaps dozens, of credit cards, especially if some are older and never used?

Answer: The biggest downside to having a bunch of unused credit cards is having to monitor all those accounts for fraudulent transactions, and perhaps paying unnecessary annual fees. The unused accounts add to the amount of available credit you have, which is a positive factor for credit scores.

If you’re concerned about identity theft, your best move would be to freeze your credit reports at all three bureaus. Such freezes are now free, and you can easily “thaw” the freeze temporarily if you want to apply for credit.

Credit freezes make it harder for criminals to open new accounts in your name. If a criminal uses one of your existing accounts, you’re typically protected. The vast majority of credit cards offer “zero liability,” which means you won’t be held responsible for fraudulent charges. Even without zero liability, federal law limits your liability to $50.

If monitoring multiple accounts is too much hassle, though, then he should consider closing some of the cards. If he’s paying fees for cards he’s not using, another option is to ask the issuer for a “product change” to a card that doesn’t charge fees.

Q&A: Finding someone to sell your stuff after you’re gone

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Dear Liz: I have a question on how to have my affairs managed after I die. I am single, with no children or living relatives, so finding someone to handle my estate is a challenge. Do you have a recommendation for where I can find a person or business, such as a bank’s trust department? I have a living trust but need to have someone sell all my assets (many are collectible and worth the extra effort in their sale). Do I need to go through probate just to ensure none of my assets are “lost” by the executor? Should I make a list of valuable items that would easily be omitted from the sale and distribution? To ensure all items are accounted for, to whom would I now provide the list?

Answer: Your living trust should name a successor trustee who can take over managing your affairs if you should become incapacitated or die. The successor trustee will be the one who will pay your final bills and sell or distribute your stuff after you’re gone. A list of your valuable items, along with the names of experts who can help with their sale, could help with that process. You can store that information with your living trust.

The person you choose doesn’t need to be a collectibles expert or even particularly financially savvy as long as they’ve got common sense and integrity. Successor trustees can hire any help that they need.

But this should be a person you trust completely because you’re putting a lot of power and discretion in their hands. If you’re worried this person will “lose” or mishandle your estate, you probably should choose someone else or reconsider having a living trust. Allowing your estate to go through probate instead would provide at least some court supervision of an estate’s distribution.

You may be able to hire a successor trustee. Bank trust departments can serve as successor trustees, but they tend to charge significant fees and are unlikely to want the job if your estate isn’t substantial. Another option might be a private trust services company or a professional fiduciary. Neither are exactly cheap, but they’re likely to be less expensive than a bank. Any of these options require making arrangements in advance — you can’t just name a company or fiduciary and expect them to take on the work.

Q&A: Survivor benefits and remarriage

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Dear Liz: Regarding your recent advice to the person whose husband had just died. I could be completely wrong, but I think that in order to collect her late husband’s benefits when she turns 60, she can’t remarry.

Answer: You’re right that you’re wrong, but your confusion is understandable.

There are different types of Social Security benefits that people can receive based on the earnings of a spouse or ex-spouse. People whose spouses or ex-spouses have died may collect survivor benefits. Those benefits can continue if the survivor remarries at 60 or later.

The other type of benefit is a spousal benefit, which is based on a living person’s earnings record and which may be available to current spouses as well as ex-spouses. Someone who is divorced and receiving spousal benefits based on an ex’s earning record will lose those benefits if they remarry at any age.

Q&A: Social Security earning years matter

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Dear Liz: In a recent column, you wrote that Social Security’s estimates of the dollar amount one will receive at various ages — 62, full retirement age of 66 to 67, or 70 — assumes one continues working until one applies. Therefore, one won’t receive the amount posted at full retirement age if one had stopped working at, say, age 62. Aren’t people’s benefits based on their top 35 earning years?

Answer: Yes, which is why I wrote that the benefit may be lower. Social Security assumes you’ll keep earning the same amount you are now. Those assumed future earnings could be high enough to replace one or more of your previous 35 highest-earning years. If that’s the case, your estimated benefit could be somewhat larger than the one you actually receive if you stop work early.

Q&A: Weekly free credit reports

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Dear Liz: In a recent column, you wrote that credit reports are now available weekly from AnnualCreditReport.com. Most people understand that they are entitled to a free credit report once a year via that site. Please explain what is meant by “now available weekly?” By signing up for a paid service from one or more of the credit reporting agencies, or for free, or what?

Answer: AnnualCreditReport.com was created to provide free annual reports, but now you can get your free reports every week.

If you navigate to AnnualCreditReport.com, you’ll see an announcement from the three credit bureaus that the site will provide free credit reports weekly until April 2021.

Free means free. You don’t have to pay or provide credit card information, although the bureaus may try to sell you credit monitoring or other services.

Q&A: Social Security survivor benefits

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Dear Liz: My husband passed away at age 59 last year. He was sick and unable to work the last four years of his life. I will be 56 in October. My understanding is I will not be able to draw his Social Security benefits until I am age 60. Is this correct? I struggle financially and need that money now. Also, could he have drawn his Social Security benefits before he turned 60 since he was unable to work?

Answer: Your husband could not draw retirement benefits before age 62, but he may have been a candidate for Social Security Disability Income or Supplemental Security Income if his condition was severe enough to prevent him from working. SSDI is available to people who have worked long enough to be “insured,” which generally means 10 years in jobs that pay into Social Security. SSI is intended for aged, blind and disabled people with low incomes and few assets.

You won’t be eligible for survivor benefits until you’re 60. If you’re struggling, please visit Benefits.gov to see if you’re eligible for other government programs. You also can call 211 or visit 211.org to see what resources in your community may be available to help you.