Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, May 3, 1993 TAG: 9305010008
SECTION: BUSINESS PAGE: 6 EDITION: METRO
SOURCE: MAG POFF
DATELINE: LENGTH: Medium
In the early 1980s, he made out a will leaving everything to nieces and nephews but nothing to his wife. The house, the truck, his bank account are all in his name. His dog and cats were mentioned in the will, but not her. She knew nothing of this as he told her she would get half. But the relatives have already been here trying to get some of the things like tools. She even caught one of them going over some papers. She took his Social Security check to deposit it, and the bank refused to give her any money as the account is in his name. So she has no money, yet she has to eat.
We called a lawyer. He said all he can do is contest the will after he dies, but that would tie everything up for years with no money.
She has waited on this man hand and foot for over 20 years. She still cooks on a wood stove and hauls coal for heating because he wouldn't buy her a gas stove or an oil furnace.
A: You should insist that your future mother-in-law immediately consult a lawyer who specializes in wills and estates.
Her husband cannot cut her out of his will. Under law, she is entitled to a third of his estate. And she can also contest gifts that he has given to others without her consent. Under certain circumstances, she can claim a third of those assets as well. She has everything to gain (and certainly nothing to lose) by contesting the will, and she can petition the court for interim support from the estate while the matter is pending.
When he dies, she is entitled to a widow's share of Social Security. She should visit the local Social Security office to establish what her rights are and the amount of money she can expect to receive.
Meanwhile, he has an obligation to contribute to her support, and she could ask a court for support money so that she can eat. If her husband is no longer capable of handling his affairs, she could petition a court to become guardian of his legal affairs. That would give her the right to handle his money, with the obligation of taking care of him.
Encourage her to act as promptly as possible because time is not on her side. If she cannot afford a lawyer because she has no money and no assets, she should seek help from legal aid.
\ Designate which shares are to be sold in advance
Q: Three years ago I purchased 500 shares of USF&G for $23 per share. Soon thereafter, I bought 500 shares at $11 per share. I have a total of 1,000 shares with a total cost of $17,000. Now the price has gone up to more than $19 a share.
If I sell 500 shares that cost $11, my gain is $4,000 with 500 shares remaining at the cost of $23 per share. For tax purposes, which 500 shares do I report? I have 500 shares remaining.
A: You can designate which shares you want to sell provided that you do it in advance. If you fail to exercise this option when you order the sale, the Internal Revenue Service will assume you sold the shares that you purchased first. Should that happen, you would sell the $23 shares by default and thus have a loss.
So you are in a position to determine whether a gain or a loss will be more beneficial to you. That depends on your own tax situation.
C.J. King, a certified public accountant with the Roanoke firm of Cole & King, said you should instruct your broker which shares to sell. This is especially true if the two sets of shares were purchased at nearly the same time, as in your case.
You should tell the broker that you want the specific shares identified on the confirmation of sale, King said. The broker can do this, he said, even if the broker is holding the shares in lieu of your keeping a stock certificate.
King said this rule applies only to the stock of publicly held companies, such as USF&G. He said the IRS will assume sale of the first shares in the situation of a closely held corporation.
\ Your money's safe in any Va. bank
Q: A couple of years ago you gave a list of Virginia banks with highest capital-to-assets ratios. I found this most useful in diversifying by CDs.
Would you kindly bring this list up to date to list current Western Virginia banks with the highest capital to asset ratios?
A: All major Virginia banks are financially strong and in a much better capital position than they were several years ago. Your money will be safe in any of these banks, especially because all Virginia banks are insured by the Federal Deposit Insurance Corp. You can ask smaller banks about their capital ratios because many of them are also very solid.
So go for the best interest you can obtain, keeping the term short so you can take advantage of any future increase in rates.
\ AUTHOR Mag Poff will help find answers to your personal finance questions. Send them to her at the Roanoke Times & World-News, P.O. Box 2491, Roanoke 24010.
Memo: ***CORRECTION***