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Estate Planning

Don’t give your adult kids your house

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Adding an adult child to your house deed, or giving them the home outright, might seem like a smart thing to do. It usually isn’t.

Transferring your house to your kids while you’re alive may avoid probate, the court process that otherwise follows death. But gifting a home also can result in a big, unnecessary tax bill and put your house at risk if your kids get sued or file for bankruptcy. You also could be making a big mistake if you hope it will help keep the house from being consumed by nursing home bills.

In my latest for the Associated Press, learn the better ways to transfer a house to your kids, as well as a little-known potential fix that may help even if the giver has since died.

Wednesday’s need-to-know money news

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Today’s top story: Laid off due to Coronavirus? Take these 6 steps. Also in the news: NerdWallet Experts’ tips on handling finances during coronavirus, my experience flying from Mexico to the U.S. during the Coronavirus pandemic, and how to make a will during the Coronavirus lockdown.

Laid Off Due to Coronavirus? Take These 6 Steps
Keeping your head above water.

NerdWallet Experts’ Tips on Handling Finances During Coronavirus
Advice from the pros.

My Experience Flying from Mexico to the U.S. During the Coronavirus Pandemic
It’s a different world.

How Do You Make a Will During the Coronavirus Lockdown?
Getting creative.

Your kids don’t want your stuff

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Estate appraiser Julie Hall advises downsizing clients not to take it personally when their adult kids don’t want their furniture and other possessions. But when Hall asked her 23-year-old daughter what she might want from the four-bedroom family home, the younger woman mentioned just three items.

“And I said, ‘Out of this whole house? Honey, we have nice things!’” says Hall, author of several books, including “How to Clean Out Your Parents’ Estate in 30 Days or Less.” “I started to sound like my clients.”

In my latest for the Associated Press, how to not take it personally when your kids don’t want your treasures.

Thursday’s need-to-know money news

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Today’s top story: Writing a will? How to stop stalling and get it done. Also in the news: Hidden financing traps in car shopping, how to protect yourself in the Words with Friends data breach, and the big wedding expense nearly half of married couples regret.

Writing a Will? How to Stop Stalling and Get It Done
Make things easier for your loved ones.

Car Shopping? Don’t Fall for These Hidden Financing Traps
Avoiding the extended warranty trap.

How to Protect Yourself in the ‘Words with Friends’ Data Breach
200 million users are affected.

Nearly half of married couples regret this big wedding expense
This one might surprise you.

How to quit stalling and write your will

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You know you should have a will, but you keep stalling. No one likes to think about dying or about someone else raising their children. But if you get no further than scribbling notes or thinking about which lawyer to hire, you risk dying “intestate” — without a will that could guide your loved ones, head off family feuds and potentially save your family thousands of dollars.

Financial planners say getting people to stop procrastinating on this important money chore can be tough. In my latest for the Associated Press, several advisors offer their best strategies for getting this done.

Q&A: Here’s a primer on all those estate planning documents

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Dear Liz: Our dad’s kidneys are failing. Our mother passed away awhile ago, so it’s just me and my sister. He has a will, and my sister is on his bank account, but how do we handle the house transfer? Do we need a living will? We don’t want it to go into probate. We are splitting everything equally.

Answer: Losing a parent is stressful, so it’s good that you have your father’s estate-planning document to guide you. If it was properly drawn, it will name an executor who will handle the details of settling his bills, paying his creditors and transferring his remaining assets to his heirs.

If the executor happens to be you or your sister, you’ll be able to hire an attorney to help you and pay for it out of the estate’s assets. Having an attorney can help make the process much smoother and help avoid potentially costly mistakes.

You asked about a living will, but that’s a document designed to communicate someone’s wishes regarding end-of-life medical care. Living trusts are the documents that can avoid probate, the court process that otherwise follows death.

In many states, including California, probate also can be avoided with a “transfer on death” deed. If your father is still able to make decisions, you might want to hire the attorney now to advise you about which document makes the most sense.