Ask Liz Weston

Get smart with your money

wills

Q&A: Don’t make handwritten will changes

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Dear Liz: I have a question about wills. Since circumstances change over time, is it permissible to make “pen and ink” changes to a will? For example, can I cross out a beneficiary that no longer applies and date and initial the cross out?

Answer: Think about how easy it would be for someone else to alter your will with a pen and a reasonable facsimile of your initials. Then you’ll understand why states typically require people to be a little more deliberate about changing their estate documents. Even when handwritten changes are allowed, they’re usually not advisable. Any money you save by not seeing an attorney could be spent many times over in legal fees, since handwritten changes would be susceptible to challenges in court. Is that what you really want for your heirs?

Small alterations to estate plans can be handled with properly drafted and witnessed documents known as codicils. But you’re often better off creating a new document and revoking the old one, especially when changing beneficiaries.

Friday’s need-to-know money news

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Today’s top story: How to leave Crypto to a loved one. Also in the news: Black Friday return policies, the October jobs report gives tired travelers a glimmer of hope, and the unexpected way bad credit messes with your life.

How to Leave Crypto to a Loved One
If you don’t make a plan for your cryptocurrency, it could be lost after you die. Here’s how to make sure it gets passed down to a loved one.

As You Shop Black Friday, Keep Return Policies in Mind
Before making purchases this holiday season, consider retailer return policies to save time and money.

October Jobs Report Gives Tired Travelers a Glimmer of Hope
The travel industry is experiencing significant job growth, according to October 2021 Bureau of Labor Statistics figures.

The Unexpected Ways a Bad Credit Score Messes With Your Life
Looking beyond mortgages and car loans.

Thursday’s need-to-know money news

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Today’s top story: When a will won’t work. Also in the news: 6 gift categories unaffected by supply chain delays, 3 ways to tap the unexpected equity in your leased car, and alternatives to backdoor Roths.

When a Will Won’t Work
Consider the limitations of a will when making arrangements for your final wishes.

6 Gift Categories Unaffected by Supply Chain Delays
Products from local businesses, handmade items and digital gifts are among the categories unaffected by delays.

3 Ways to Tap the Unexpected Equity in Your Leased Car
Despite new restrictions on selling to a third-party dealer, you do have options for accessing leased car equity.

Congress Is Targeting Backdoor Roths. Here Are Some Alternatives
The backdoor Roth, or Roth conversion, helps high earners move money into investments that can grow tax-free.

When a will won’t work

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A will allows you to distribute your worldly goods, select a guardian for minor children and name an executor to carry out your wishes.

But you should be aware of what a will can’t or shouldn’t do. This is particularly true if you’re drafting your own document without an attorney’s help, since you could unknowingly make a mistake that upends your whole estate plan.

In my latest for the Associated Press, learn what a will can, cannot, and shouldn’t do.

Q&A: Pitfalls of unequal will distributions

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Dear Liz: You’ve written that when writing their wills, parents should be careful about leaving unequal distributions to their children. What wasn’t mentioned was that a person could have a “good” child and a “bad” one. The “bad one” has never done a thing for the parent, such as inviting her to the child’s home at Thanksgiving or Christmas, and only visits the parent in the summer when the parent just happens to live at the beach. The “good” one is very attentive and visits the parent even in winter, and so on. What is your thinking in inheritance in this case?

Answer: It’s your money, and there’s no one right way to divide an estate. However, it’s disturbing that your assessment of your children seems to be based solely on how much attention you get.

It’s possible one child acts more selfishly or thoughtlessly than the other. It’s also possible that you are difficult to please, and one child understandably limits the time she spends trying to do so.

Q&A: When an executor doesn’t heed the will

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Dear Liz: My dad’s will clearly divided his estate equally between his two sons. By the time Dad died, my brother had two kids. After the funeral, my sister-in-law sat me down and told me that everything will be divided into three parts. I would get one-third and they get two-thirds, because they had the kids. This was not a request; it was, “That’s the way it’s going to be and there’s nothing you can do about it.” My brother, who was the executor, was nowhere to be seen — a pattern when dealing with money issues. This was many years ago. I was a student at the time. I went along with it but wonder to this day about the fairness of the situation.

Answer: Wonder no more. If the situation was as you describe and your brother ignored your father’s will, then he wasn’t just unfair to you. He violated the law.

Executors are supposed to follow the will’s directions to the best of their ability. If they don’t, they can be held personally responsible. But each state has statutes of limitation that give you only a certain amount of time to file a civil lawsuit in these situations. You may have a bit more time if you were a minor when all this happened, but you’d want to consult an attorney to discuss your options.

You wouldn’t be the first person done out of an inheritance by a self-dealing sibling, unfortunately. This should be a reminder to parents not to reflexively choose the oldest child, or indeed any child, to fill this role without thinking about the child’s character.