Laid-off son must find his own way
DEAR BRUCE: My son and family have been told to move because the owners were going to sell the house. My son and wife don’t have jobs, though his wife cleans houses under the table because she owes back child support. We have taken my son in two other times. He has always worked in the past, but he was laid off. I have congestive heart failure, diabetes, failing kidneys and other things.
My other son said that we should not take in my son and family at this time because he doesn’t think I could take it with my health concerns. I worry about everyone all the time and don’t help myself, which is wrong. I think my son has put all of this on himself, and he has to work it out. He and his wife have to learn things like the rest of us. Isn’t that right? I know it is cold outside, and I guess he is staying at a friend’s house in the evenings and looking for someplace to live during the day. Please help with some ideas about what else to do. My other two adult children won’t take them in because they have families of their own. ‘ G.L., via e-mail
DEAR G.L.: This is a difficult circumstance. Given your physical anomalies, how can anyone expect you to take your son into your home? It’s just not reasonable or right. While I sympathize with your son not having a job, there’s always some kind of work out there if he’s willing to take it. Many of us have had to make compromises at some point in our lives. I wouldn’t expect your other children to take in his family, either; they have their own responsibilities. This is something your son will have to work out, even if it means welfare. I don’t think any reasonable person would expect you to open up your home to them, which apparently you have done in the past.
DEAR BRUCE: How long must I hold investment real estate to receive long-term capital-gains treatment? My CPA says one year, but a real-estate fixer-upper book I was reading said two years. Who’s right? ‘ N.R., via e-mail
DEAR N.R.: One year for capital gains. You must own the property for at least 12 full months. Go with your CPA.
DEAR BRUCE: I was told that we needed to have a trust set up for our survivors. When I suggested this to my attorney, she said you pay now and again in the end. Can you give a comparison of a will and a trust? I have two children and two homes valued at $350,000 each, plus assets of about $200,000. ‘ Linda, via e-mail
DEAR LINDA: I’m not quite sure what your attorney is suggesting, but I see no purpose in setting up a trust. You have substantial assets, but they are well under the $2 million exemption currently available to you. This may change in 2011, but a simple will, naming those with whom you wish to share your assets, is less expensive and relatively painless. Probate is not the boogeyman.
Send your questions to: Smart Money, P.O. Box 2095, Elfers, FL 34680. E-mail to: [email protected]. Questions of general interest will be answered in future columns. Due to volume of mail, personal replies cannot be provided.