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wills

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.

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.