ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Monday, February 5, 1996 TAG: 9602050049
SECTION: MONEY PAGE: 6 EDITION: METRO
COLUMN: Money Matters
SOURCE: MAG POFF
Q: My husband has a minor-age daughter by his previous marriage. He is in a profession in which he is at high risk for injury or death. We do not own a home, but we both have vehicles titled only in the owner's name; separate savings accounts with each other listed as beneficiaries; and CDs. I also have mutual funds in which he is listed as the beneficiary.
Do we need a will now, or should we wait until we own a home? Also, what part of her father's estate would the child be entitled to if we do not have a will?
A: Your husband's child by a previous marriage would be entitled to two-thirds of your husband's estate, while you would get one-third, if he dies without a will. There are complications under which people could challenge exactly what is counted in his estate, so you should get advice from a lawyer who is a specialist in wills and estates. Anyone with dependents, assets and obligations should have a will, and ownership of a house has no bearing on the situation. A house is simply one more asset.
There are also various ways in which assets are titled, and this has a bearing on how they are passed on in the case of death. Those that are titled jointly with survivorship generally pass outside a will. Your savings accounts and certificates of deposit may meet this standard. Your lawyer can advise you.
Overspending seniors worry children
Q: I am concerned about the financial stability of my parents, who are ages 78 and 80.
The house is paid for. (It is now in my and my brother's names.) They receive a good pension (with health care provided) from the railroad. My mother even has a part-time job. Both are in good health.
The problem is with credit cards. Over the years, they have accumulated more than $37,000 worth of debt that they cannot pay off. About five years ago, I tore up many of the cards and wrote letters to the credit-card companies and stores asking them not to send any more - and they still do. It is a futile task to deal with banks and others.
Are my brother and I responsible for these debts at my parents' deaths? If you have a local number of anyone who can advise me on a course of action, I would be most thankful.
A: Usually these days, it's the parents who worry about their children's charging on credit cards.
The law requires children to support their penurious parents, but nothing says children have to support lavish credit card spending. Besides, this law is rarely (if ever) enforced.
The debts will be charged against their estates when they die, which means you will have less (or no) inheritance.
But you should not have to take on these debts unless you somehow adopt them, which is why your letters to stores and banks are worrisome. Stop writing to the companies immediately, unless you are willing to become legal committee for your parents, which would require you to have them declared incompetent. You probably are unwilling to take that step.
Let the banks and stores handle credit problems; you stay out of the situation. Never sign anything related to these debts.
One agency that might help is Consumer Credit Counseling, which has an office on Peters Creek Road in Roanoke. The number is 563-0076. The agency helps people who want to get out of debt by drawing budgets and working with creditors.
The problem is that your parents don't seem to want to get out of debt. Besides, at their age, they may believe the situation is hopeless.
You should butt out. Never sign anything and let your parents work out their own problems with creditors.
LENGTH: Medium: 71 linesby CNB