The Federal Housing Administration, which insures up to a third of all new mortgages, has adopted some limits on the mortgages it will insure. The FHA doesn’t make loans, but it insures loans made by other lenders in order to encourage lenders to give mortgages to people with shaky credit or little in the way of a down payment. The new restrictions will make it somewhat harder for such people to get mortgages.
When a couple buys a home, they often simply put both names on the deed. When a homeowner gets married, he or she often adds the spouse’s name to the deed. And when a single person shares a home with an elderly relative, they often put both names on the deed. This may be common, but it’s not necessarily the best idea. Here are some things to consider: Capital gains. Under certain circumstances, if you add
Anyone looking for a mortgage (or other loan) needs to worry about credit scores. But how much do you really know about your score? Take this quick test and see. 1. If I pay my credit card bill in full each month, that will significantly improve my credit score. True False 2. Any time I miss a bill payment, my credit score is negatively affected. True False 3. If my income
Some people are worried that after they die, family members may be unhappy about certain provisions in their will and may try to challenge the will in court. This is particularly true if one child is getting less in the will than others, for instance. Here are some ways to head off a will contest: Talk to your heirs now about what you’re doing and why. Many will contests are triggered because a relative is surprised
Ordinarily, there’s no estate tax on assets that pass at death to someone’s spouse. But that’s true only if the surviving spouse is a U.S. citizen. If the spouse isn’t a citizen, then the estate tax generally applies…unless you set up something called a “Qualified Domestic Trust,” or QDOT. Instead of leaving your assets directly to your spouse, you can put them into a QDOT for his or her benefit. When you die, there is no
A large number of people have changed their investment manager recently – or have decided to become their own manager – as a result of the 2008 market collapse that led to widespread terrible returns. That’s fine – but keep in mind that if you change your manager, you should check with your estate planner to make sure that any new account you create is titled properly and in accordance with your estate plan. Many estate
A lot of websites offer retirement planning calculators, where you can enter your age, assets, and other types of information and find out how much income you can expect in retirement. These calculators may be somewhat useful, but many of them have serious flaws, and in general they produce results that are way too optimistic, according to a new study by the Pension Research Council.
If you have strong preferences regarding burial or cremation, it’s a good idea to put these in writing in your will or in your health care power of attorney. You may have expressed your wishes verbally to your loved ones, but people can become uncertain in a time of crisis, and family members might have differing views. If there is ever a dispute, having a written direction will be vital evidence of your intent. Also, if
If you or a loved one has recently been diagnosed with a serious disease, it’s a good idea to review your estate planning documents and adjust them to reflect the diagnosis. For instance, if someone is diagnosed with the early stages of Alzheimer’s disease – or any other disease that could affect cognitive functioning down the road – it’s wise to expedite your estate planning. Sign documents as soon as possible, while mental competency is not
Many people are concerned about their aging parents and want to talk with them about estate planning, but this can be a difficult conversation to have. Frequently, parents don’t want to discuss the subject because they don’t like thinking about their own death, and because they’re afraid that estate planning will involve a loss of independence and control. Also, children may be afraid that bringing up the topic will make them seem greedy. Yet this is
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