Ask Liz Weston

Get smart with your money

Inheritance

Q&A: Unloading collections while you’re still alive

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Dear Liz: You recently advised someone who didn’t know whom to select to administer a living trust because the person has no spouse, children or other living relatives. This person mentioned they had collectibles. An additional thing they should consider doing is donating the collection while alive to an archive, museum or other appropriate organization that would be interested in receiving it or in selling the items to support their mission. That way they won’t end up in the trash but will be handled appropriately. There also might be a tax advantage to this donation.

Answer: That’s an excellent suggestion. Here’s another good one:

Dear Liz: Selling off collectibles is a long, time-consuming undertaking. My husband was a huge collector and we did not want to leave that burden to our son. So when he retired, he started selling things on EBay. It was a lot of work and took him years. (We checked with our son to make sure he didn’t want the things he sold.)

Answer: What an excellent retirement project as well as a huge gift to your son. The first step is being willing to part with a collection while alive. Those who are ready to do so may be in a better position to find eager buyers than anyone who inherits the collection.

Collectors who don’t have the time or energy for this process can consider hiring someone to do it. Other alternatives include selling to a dealer, either outright or through consignment, or hiring an auction house, if the collection is valuable enough to attract bidders’ interest.

Thursday’s need-to-know money news

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Today’s top story: What to do with your ‘treasures’ your kids don’t want. Also in the news: How ‘shadow lenders’ can leave college students in the dark, why it’s harder than ever to find a balance transfer offer right now, and 5 destinations from Netflix hits to inspire your future travels.

What to Do With Your ‘Treasures’ the Kids Don’t Want
Don’t take it personally.

‘Shadow’ Lenders Can Leave College Students in the Dark
Know exactly what you’re borrowing.

Why It’s Harder Than Ever to Find a Balance Transfer Offer Right Now
The coronavirus strikes again.

5 Destinations From Netflix Hits to Inspire Your Future Travels
You’ll travel again someday.

What to do with your stuff the kids don’t want

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Parents who are downsizing or simply decluttering may have to get creative at finding homes for all their unwanted possessions – particularly these days.

The generations that came after the baby boom are famously less interested than their predecessors in the trappings of domestic life, says Elizabeth Stewart, author of “No Thanks Mom: The Top Ten Objects Your Kids Do NOT Want (and What To Do With Them).”

Gen Xers and millennials often don’t want to polish silver or hand wash china, Stewart says. They’re also typically not interested in dark, heavy furniture, books, photo albums, vintage linens or someone else’s collections.

In my latest for the Associated Press, how to figure out what to do with it all.

Q&A: How the COVID-19 pandemic is delaying inheritances

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Dear Liz: My mother passed away in March due to old age. She lived in California. I live out of state and couldn’t travel because of the pandemic. My siblings took care of her burial. Her will named me executor. I’d like to know how long I have to settle her estate and whether I will need an attorney. Her house was her major asset and was assessed at $400,000. There’s no mortgage. The house goes to an older brother and me, and two grandsons each get $10,000. I want to make sure the grandsons get their inheritances as soon as possible.

Answer: Your grandsons will have to wait awhile. California probate is slow at the best of times, with a typical case taking eight to 12 months or more. Pandemic-related court closures are adding many months to the process. Courts are slowly reopening but dealing with a significant backlog of filings.

Your mother’s will should be filed with the appropriate county within 30 days of her death and the county tax assessor should be notified within 150 days because she was a property owner, said Jennifer Sawday, an estate planning attorney in Long Beach. Though most counties allow electronic filing for probate matters, it’s typically not the most user-friendly process and you may want to consult a probate attorney. The initial consultation is usually free. Hiring an attorney to handle the whole process probably won’t be cheap: By law, probate attorneys can charge 4% of the first $100,000 of the estate, 3% of the next $100,000, 2% of the next $800,000, 1% of the next $9 million, and 0.5% of the next $15 million.

Your mom could have avoided probate entirely if she’d created a revocable living trust, or if she had taken other probate-avoidance measures. In California and many other states, real estate can be passed on with a “transfer on death” deed that avoids probate. She also could have set up bank accounts and designated your grandsons as beneficiaries to avoid probate.

It’s too late now, obviously. But whatever you do, don’t jump the gun by making distributions, Sawday warned.

“If there is a will, under no circumstances should he make the cash gifts to the grandsons until the court admits the will, appoints him as executor and probate actually commences,” Sawday said.

Wednesday’s need-to-know money news

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Today’s top story: 5 reasons it’s smart to lease a car right now. Also in the news: How to free up cash in your budget, how to decide what to leave your kids, and all the ways to get Amazon Prime for free.

5 Reasons It’s Smart to Lease a Car Right Now
Keeping your financial options open.

Can’t make money right now? Free up cash in your budget
Time to check every dollar you spend.

Should you be ‘fair’ with the inheritance you leave to your kids?
Think carefully about the message you’re sending.

All the Ways to Get Amazon Prime for Free
How to score that sweet free shipping.

Q&A: Getting sister’s house without a will

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Dear Liz: When I retired in 2018, I rolled over my 403(b) teachers retirement account into a traditional IRA and made my sister sole beneficiary. I sent her a copy of that beneficiary statement showing her name, her percentage (100%), and my account number. My sister later told me in a phone call that she wished to bequeath me her house should she predecease me. She explained she didn’t have a will but she made her feelings known to our older brother. Even if I were on speaking terms with our older brother, I would find this arrangement naive. Knowing my sister, she actually believes this method is the right way to proceed with her wishes. I’m asking you to be Dear Abby, perhaps, but what do I do?

Answer: You can explain to her that if she doesn’t have a will, the laws of her state will determine who gets her house regardless of what she intended. If your sister does not have a spouse or children, and your parents are dead, you and your brother would probably inherit the home as well as the rest of her estate. You would have to negotiate what to do with the house, which could be difficult if you two still aren’t speaking.

If you can’t get her to write a will, there may be another option. Many states allow “transfer on death” deeds, which are forms that allow people to name a beneficiary for their home. This would ensure that the house is left to you and that it avoids probate, the court process that otherwise follows death.