Obtain counsel in all states where you own property
Q: Our question concerns a will made in our home state. Would this will cover property we own in other states?
A: This is a perfect example of why it is absolutely imperative that you consult an attorney in the state where you are currently living and the states where you hold real estate. It would serve no positive purpose to try to provide a quick, off-the-cuff answer. I urge you to seek counsel first in your home state. Then have him or her discuss the matter with counterparts in the states where your property is located to be certain that you meet whatever conditions are required in those states. If you don't, you may be putting a rather large burden on your executor to get things straightened out in the event of your deaths.
Q: I see a lot of advertising on television that says, "Buy now and pay no interest until 2009." How does this work?
A: I'm surprised at how many letters I get in regards to this. First, you have to understand there is "no free lunch." Once you understand that, you will see that it works very simply. The interest is packaged into the purchase price. While it may not be expressed as interest, the use of that money is still part of the deal. This is often true of products that carry a very high markup where they can afford to "eat" the interest. In reality, the consumer is paying it, period. If you were to go in and offer to pay cash for this item, you would be able to negotiate a better deal. Just remember that nothing is "free," no matter how it is expressed.
Q: My mother has her money in an account with my name and my brother's name on it. She is now in a nursing home. They told us that her savings have to pay for her care. Is there any way we can save some of that money for her heirs?
A: I hate to be the bearer of bad news, but I'm afraid not. If the money had been "given" to you and your siblings prior to the "look back" period (before your mom required the care), some of the money could have been preserved. Anything during the look-back period, however, is considered deliberate self-impoverishment with the hopes of kicking in government programs. The agencies involved take a narrow view of this. It is a sorry situation because lifetime savings, accumulated through prudent living, can be devastated in a short period of time. But until the system is revised, that's the way it works.
Send your questions to: Smart Money, P.O. Box 2095, Elfers, FL 34680. E-mail to: bruce@brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided. Smart Money