• Skip to main content
  • Skip to primary sidebar

Ask Liz Weston

Get smart with your money

  • About
  • Liz’s Books
  • Speaking
  • Disclosure
  • Contact

gold

Q&A: Dad didn’t trust banks. How to handle the hoard he left behind

June 21, 2021 By Liz Weston

Dear Liz: My father was eccentric and given to conspiracy theories. He didn’t trust banks or the stock market and invested the bulk of his money in gold coins and bars. We are talking millions of dollars at current gold prices. My parents set up a living trust, so when my mother dies, I am confident the gold will be distributed equitably to myself and my siblings, without a lot of hassle in probate. But I have no idea how to convert all that gold into a more liquid investment like an IRA or money market fund. How do I do it and not be overwhelmed with fees and taxes?

Answer: Let’s hope the gold is safely stored and properly insured. It would be a shame if burglars walked away with your inheritance.

If your mother’s estate is large enough to owe estate taxes, the estate will pay those — not the heirs. (The current exemption is more than $11 million per person, so very few estates owe this tax.)

Under current law, the gold will receive a new, “stepped-up” value for tax purposes on the day your mother dies, said Jennifer Sawday, an estate planning attorney in Long Beach. You should note the price of gold on that day, using a reliable gold pricing site, and print out the information for future tax purposes, Sawday said.

Once you receive the gold, you can take it to a precious metals exchange and cash it in. If the price you get is higher than the price of gold on the day your mother died, you would have a taxable capital gain. If the price is lower, you would have a capital loss. You wouldn’t owe any taxes and could use the loss to offset capital gains elsewhere or, if you don’t have gains, as much as $3,000 of income per year until the loss is exhausted.

You can deposit the cash in a bank account, or open a brokerage account and choose your investments from there. Those investments might include a money market fund as well as stocks, bonds, mutual funds and so on.

An IRA is a type of retirement account, not an investment, and requires you to have earned income to contribute. The contribution limit is $6,000 this year, or $7,000 if you’re 50 or older, so you wouldn’t be able to put much of your inheritance into an IRA in any case.

An excellent use of some of this cash would be to hire a fee-only, fiduciary financial planner who can help guide you on how to invest the money wisely and with an eye to minimizing taxes.

Filed Under: Inheritance, Q&A Tagged With: gold, Inheritance, q&a

Thursday’s need-to-know money news

August 6, 2020 By Liz Weston

Today’s top story: Can you have too much credit? Also in the news: 5 things to know about gold’s record breaking run, the Equal Opportunity Act and its effect on women’s finances, and negotiating with your landlord during COVID-19.

Can You Have Too Much Credit?
Credit scoring formulas don’t punish people for having too many credit accounts, but too much debt can hurt scores.

5 Things to Know About Gold’s Record-Breaking Run
As COVID-19 concerns continue to rattle markets, investors are turning to one of the world’s oldest currencies.

Women and credit: In the 1970s, the Equal Credit Opportunity Act became law— a key step in financial freedom for women
The law barred shady credit practices including lender discrimination based on race, sex, age, nationality or marital status.

Negotiate With Your Landlord During COVID-19
Be upfront and honest.

Filed Under: Liz's Blog Tagged With: Credit, Equal Opportunity Act, gold, landlords, pandemic, renting, too much credit, women and money

Thursday’s need-to-know money news

July 30, 2020 By Liz Weston

Today’s top story: How to save on back-to-school shopping amid uncertainty. Also in the news: 5 things to know about gold’s record-breaking run, experts say new investors should quit stock-picking, and how this week’s fed meetings may impact your wallet.

Back-to-School Shopping in 2020: How to Save Amid Uncertainty
Whether your kids are learning in the classroom or living room, here’s how to save on back-to-school shopping.

5 Things to Know About Gold’s Record-Breaking Run
As COVID-19 concerns continue to rattle markets, investors are turning to one of the world’s oldest currencies.

New Investors: Quit Stock-Picking and Do This, Expert Says
Recent market turmoil has new investors chasing company stock picks

How This Week’s Fed Meetings May Impact Your Wallet
Expect interest rates to stay low.

Filed Under: Liz's Blog Tagged With: back-to-school shopping, fed meeting, gold, new investors, tips

Primary Sidebar

Search

Copyright © 2025 · Ask Liz Weston 2.0 On Genesis Framework · WordPress · Log in