Ask Liz Weston

Get smart with your money

Q&A

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.

Q&A: Another place to search for a lost living trust

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Dear Liz: In a recent column, you quoted an estate planning attorney who suggested ways to find a copy of a living trust after a parent’s death. I have no quarrel with her advice, but suggest a simpler option to consider: See if there is a bank safe deposit box in which such a trust might be located.

Older individuals tended to keep safe deposit boxes for decades, and if a child finds a key in the living mother’s possession, that might be a good place to look for the missing documents.

Answer: It’s worth a shot.

The parent in question, who suffered from dementia, destroyed information related to the living trust, including the document itself and the name of the attorney who drafted it. Estate planning attorney Jennifer Sawday suggested checking the deed to the parent’s home, since the attorney or law firm may be listed as the party that requested the deed be recorded when the home was transferred to the trust.

Estate planning experts typically advise against storing living trusts, wills and other estate documents in safe deposit boxes, since banks may restrict access after a death and delay administration of the estate. In this case, though, a safe deposit box might have protected the documents from the parent’s destructive tendencies.

Q&A: Can a bank help find a missing trust document?

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Dear Liz: Concerning the missing trust document, they should also check with existing banks and brokerages that the trust has accounts with to see if they have a copy of the trust. Odds are very low, but it may be worth the effort.

Answer: Banks and brokerages aren’t required to keep such copies, but it doesn’t hurt to check — and it’s certainly cheaper than going to court.

Q&A: Who can help older adults pay bills and manage money?

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Dear Liz: Who can I hire to do my bill-paying when (or if) I get into very old age? If I die first, no problem. My wife has sons to turn to. But if she goes first, I may need help managing my money. I’m sure many folks are in my situation, with no family to call on.

Who helps single, childless old folks pay their bills?

Answer: Professionals known as daily money managers can help with a number of routine financial tasks, including paying bills, organizing financial records and handling insurance paperwork.

They can help with budgeting and monitor accounts to protect clients from theft and scams. They serve older adults, people with disabilities, the neurodivergent (such as people with attention-deficit issues), busy professionals and small business owners, among others.

You can learn more at the American Assn. of Daily Money Managers. Use the orange “Find a DMM” button at the top of the organization’s home page to search for daily money managers near you.

You also may be able to get referrals from your tax pro, estate planning attorney, financial planner or local Area Agency on Aging. Before you hire anyone, you’ll want to ask about their experience, certifications, fee schedule and professional insurance.

What a daily money manager typically can’t do is take control of your finances if you become incapacitated.

For that, you and your wife should both have durable powers of attorney for finances that name trusted people who can make money decisions if you can’t. If you don’t have anyone you trust, talk to your estate planning attorney about professional fiduciaries who may be able to help.

Q&A: Can investment gains outweigh inherited IRA penalties?

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Dear Liz: You recently answered a question from a person who inherited their father’s IRA in 2010 and learned they faced significant penalties for failing to withdraw the money over the subsequent 10 years.

But given how well the market has done over the last 16 years, is it possible they will end up with even more money despite the penalties than if they had withdrawn the funds as required?

Answer: No. The penalties are hefty enough that even a bull market shouldn’t tempt someone into ignoring them.

By the way, the original letter writer wasn’t required to drain the inherited IRA within 10 years.

That requirement for most nonspouse beneficiaries has only been in place since the SECURE Act of 2019. Before then, inheritors were typically allowed to stretch withdrawals over their own lifetimes — but they were still required to make annual withdrawals or face 50% penalties.

The SECURE Act reduced those penalties to a 25% excise tax on the amount that hadn’t been withdrawn. The penalty can be reduced to 10% if corrected within two years.