Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, November 14, 1994                   TAG: 9412070018
SECTION: BUSINESS                    PAGE: EX6   EDITION: METRO 
SOURCE: MAG POFF
DATELINE:                                 LENGTH: Medium

USUALLY, SPOUSES ARE NOT LIABLE FOR DECEASED'S DEBTS

A: It depends on the circumstances under which the card was issued.

J. Lee Osborne of the Roanoke law firm of Carter, Brown and Osborne said the surviving spouse is not liable for the debt if he or she is not listed on the application and never used the card. That means the person who applied for the card listed it in his or her name without involving the spouse. If the spouse is listed on the application form or signed for the card, he or she would be personally liable.

The surviving spouse also would be responsible for the debt if he or she had used the card, Osborne said.

As a general rule, according to Osborne, surviving spouses are not responsible for the debts of a deceased spouse. Sometimes, however, it is difficult to differentiate between joint and personal debts.

The matter may be academic anyway. The estate of the deceased spouse would be responsible for paying all debts, including the credit card balance. Paying off those debts would cut into the survivor's inheritance.

Company no longer exists

Q: A member of our family has possession of a stock certificate for 25 shares of Syncrasy Talking Picture Corp., state of Delaware, 40,000 shares without nominal or par value. It was certificate No. 28, signed at Wilmington, Del., on July 26, 1929. Could you furnish me any information on this certificate?

A: Peter Milward, manager of the Roanoke office of J.C. Bradford & Co., said the librarian at the company's Nashville, Tenn., headquarters found record of this company in existence in 1929, but it disappeared from the stock records after that date.

The company probably was among the countless new enterprises spawned in the boom of the 1920s that vanished in the stock market crash of October 1929, Milward said.

Estate planning

Q: How can I handle my estate to keep my children from paying most of their inheritance in taxes? We own a farm and have some certificates of deposit. If I fixed the CDs with them as co-owners, would they have to pay tax on that?

A: You cannot escape paying taxes simply by changing the names on your CDs. If you changed the certificates to joint ownership with right of survivorship, the money would go to the survivor regardless of what your will says. That affects only distribution of the assets. The CDs still would be subject to tax.

If your entire estate, including the farm, savings, investments and insurance, amounts to less than $600,000, you have no problems at all. Nothing would be taxed. Your property would have a new tax basis: the value at the date of your death. That would result in lower capital gains tax when your children sell.

If your estate is worth more than $600,000, you should see a lawyer who specializes in estate and tax work. You can reduce taxes through proper planning by writing an appropriate will, perhaps setting up trusts and possibly engaging in a program of annual gifts to your children. This is especially true for a couple. Too often couples pass money to each other, subjecting the total estate to high taxes on the death of the second to die. If your estate exceeds the taxable limit, you should begin estate planning as soon as possible.

Appraising collectibles

Q: My mother gave me four pieces of paper money, two from the United States and one each from France and Germany. Those from the United States were for $5 drawn on the Havre-de-Grace Bank in Maryland and for 10 cents drawn on the Treasury. I would appreciate any information as to their value and where they could be cashed.

A: The American Numismatic Association can put you in touch with reliable appraisers and dealers who can work from copies of your paper money. The association can be reached by writing to 818 North Cascade, Colorado Springs, Colo. 80903. Or you can telephone the organization at (719) 632-2646.

Larger public libraries, including Roanoke's, have reference books on paper money, but most of the standard works deal in United States currency.

You can also visit a coin shop for an appraisal of your holdings.

Like all collectibles, however, you must sell at wholesale price unless you find a collector who is willing to pay you the going retail price.