Ask Liz Weston

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Q&A

Q&A: Why a fireproof safe may not protect your estate documents

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Dear Liz: I’d like to add to the conversation about where to store estate documents. Having lost my home, studio, office, and all the contents in the Eaton fire of January 2025, I can tell you that the temperature of our urban fire was high enough to incinerate the contents of many “fireproof” home safes in Altadena. I would no longer keep an only copy there.

In my family, we had arrangements made for me to handle my parents’ trust, and I can share that my parents’ financial planner has both hard and electronic copies of the trust. This might be another way families could access the trust, at least in a copy.

Answer: Thanks for bringing up such an essential point, which is that “fireproof” is a misnomer. Safes can be fire-resistant, but prolonged intense heat can turn paperwork to ash.

Previous columns mentioned the importance of keeping estate documents updated, which could make it more likely that an attorney would have a copy if the originals are lost.

Another increasingly popular option is to use online vaults such as Everplans. These secure online services allow people to store digital copies of important documents and deputize trusted people to access them either immediately or after the account owner’s death.

Q&A: Delayed tax refund? Contact your lawmaker

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Dear Liz: A reader requested advice regarding a delayed tax refund. I had a similar problem a few years ago. The IRS owed me a substantial refund. I tried calling the IRS but couldn’t reach a person.

The automated system insisted my refund had been sent. I wound up calling my congressman’s office. They assigned a field representative to investigate. She was able to contact someone at the IRS who opened an investigation. She periodically followed up and kept me advised by email of her efforts. It took a few months but thanks to her work (and persistence), the IRS finally sent me my refund.

Answer: Thanks for the great tip! Elected representatives’ constituent services teams often can help people resolve issues with government agencies.

Q&A: Can a brokerage sell your stocks without warning?

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Dear Liz: How can I get help after my brokerage’s margin team illegally sold my Tesla and Palantir stock, citing market volatility and not notifying me?

Answer: Just because you don’t like the result doesn’t mean the brokerage acted illegally.

If you took out a margin loan using your portfolio as collateral, the agreement you signed allows the brokerage to sell investments if your account equity falls below a minimum level known as the maintenance requirement.

The firm generally doesn’t have to notify you in advance or let you choose what gets sold. Even if you’re given a deadline to make up the deficiency, the firm can liquidate your investments sooner if it decides waiting creates too much risk.

That’s not all. Brokerages can typically change their maintenance requirements at any time, without notice.

You may have heard the term “margin call” to describe the situation when an account’s equity falls below the maintenance requirement. Some people misunderstand that to mean that the brokerage actually calls you or otherwise gives you warning. That’s not the case.

Carefully read the margin agreement you signed. You can also ask the brokerage to explain in writing what triggered the liquidation.

If you believe there are discrepancies between what the agreement allows and what happened, you can complain to the firm’s compliance department, file a complaint with FINRA or the Securities and Exchange Commission and consult a securities attorney.

Q&A: Does an inherited Roth IRA get a new 10-year deadline?

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Dear Liz: I recently inherited a Roth IRA. If I understand correctly, I can leave the money in the IRA for 10 years. If I die before then and my adult son inherits the account, does he then get an additional 10 years to do something with the money?

Answer: That depends on the circumstances.

If you inherited this Roth IRA from your spouse, you can use your own life expectancy to calculate required minimum distributions, Luscombe says. If you die before emptying the account, your son typically would get 10 years from the date of your death to drain it.

The same rules apply if you are otherwise an “eligible designated beneficiary,” which includes disabled or chronically ill people and those who are not more than 10 years younger than the original Roth IRA owner.

If none of the above exceptions apply, however, you must empty an inherited Roth IRA by Dec. 31 of the 10th year following the original owner’s death. If you die before then, your son inherits your deadline along with the account. He doesn’t get a new 10-year period but must withdraw the money from the Roth by the same deadline that applied to you.

Q&A: Make sure your estate planning documents can be found

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Dear Liz: Your response about finding trust documents was very helpful. It reinforces that people need to provide copies to their loved ones in case they become incapacitated and the originals are lost or can’t be found.

People seem to complete these documents and assume they will never get dementia or become physically unable to care for themselves. Assume the best, prepare for the worst.

Answer: Even people who understand the risks may downplay them, procrastinate or not feel comfortable sharing copies yet. That makes it even more important to review estate planning documents with an attorney every three to five years and after any major life change.

These check-ins can help ensure your documents reflect current laws, beneficiaries and financial circumstances. They also mean your attorney may have a relatively recent copy if your originals go missing.

Attorneys typically aren’t required to retain copies, but many do, especially since scanning technology became common, says Jennifer Sawday, an estate planning attorney in Long Beach. Solo practitioners and smaller firms may not have the storage capacity to keep every document indefinitely, she adds.

In any case, an attorney’s copy is definitely Plan B. Plan A is to store the originals somewhere secure, such as a fireproof home safe, and make sure the right people know where to find them when the time comes.

Q&A: What to do when your IRS refund is delayed

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Dear Liz: I e-filed my 2025 taxes in early February. About three weeks later, I received a letter from the IRS asking me to verify my identity, which I did.

I am due a $38,142 refund for the 2025 tax year. I’ve been checking my refund status through the IRS’ Where’s My Refund tool as well as calling the toll-free number. All the responses have been along the lines of “we have received your tax return and it is being processed, no further action is needed” and I cannot talk to a live person to get any further information.

As a retiree whose income now comes from Social Security and my state retirement pension, I need that refund and find the six-month delay disappointing. What more can I do?

Answer: Contact the Taxpayer Advocate Service, an independent organization within the IRS that can help when your own efforts haven’t produced results. You can reach the service online at www.taxpayeradvocate.irs.gov or by calling (877) 777-4778.

Your refund may be taking so long to process for a legitimate reason, or the processing system may have failed, says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting.

The Taxpayer Advocate can try to pinpoint the problem or see whether your return simply slipped through the cracks.

You didn’t mention why you have such a large refund, but it’s best not to let Uncle Sam keep so much of your money if you can avoid it.

A tax pro can help you estimate your likely tax burden and keep you on track so you don’t wind up with a big tax bill or refund. Ideally, you’d consult a pro before the end of the year, when you still have time to make the appropriate adjustments.