Who Can and Cannot Witness a Will?

A will is notarized

A will is an important part of your financial plan. When you create a will and testament, you’re creating a legal document that determines how your assets will be distributed once you pass away. You can also use a will to name legal guardians for minor children. When making a will and testament, it’s important to follow the rules in your state to ensure the will is valid. One of those rules centers on the requirements for witnesses. For more guidance on the intricacies of wills and estate planning, consider enlisting the services of an expert financial advisor.

Why Wills Need to Be Witnessed

A will is a legal document but in order for it to be binding, there are certain requirements that need to be met. For instance, although state laws regarding wills vary, states generally require you to be of legal adult age to make a will. You must also have testamentary capacity, meaning you:

  • Must understand the extent and value of the property you’re including in the will
  • Are aware that you’re making a will to decide who will inherit your assets
  • Aren’t acting under duress in making the will

Having someone witness your will matters in case questions are raised over its validity later or there is a will contest. For example, if one of your heirs challenges the terms of your will a witness may be called upon in court to attest that they watched you sign the will and that you appeared to be of sound mind when you did so.

In other words, witnesses add another layer of validity to a will. If all the people who witnessed the signing of a will are in agreement about your intent and mental state when you made it, then it becomes harder for someone else to dispute its legality.

Who Can Witness a Will?

When drafting a will, it’s important to understand several requirements, including who can serve as a witness. Generally, anyone can witness a will as long as they meet two requirements:

  • They’re of legal adult age (i.e. 18 or 19 in certain states)
  • They don’t have a direct interest in the will

The kinds of people who could witness a will for you include:

  • Friends who are not set to receive anything from your estate
  • Neighbors
  • Coworkers
  • Relatives who are not included in your will, such as cousins, aunts, uncles, etc.
  • Your doctor

If you’ve hired an attorney to help you draft your will, they could also act as a witness as long as they’re not named as a beneficiary. An attorney who’s also acting as the executor of the will, meaning the person who oversees the process of distributing your assets and paying off any outstanding debts owed by your estate, can witness a will.

Who Cannot Witness a Will?

Two minors looking out a windowStates generally prohibit you from choosing people who stand to benefit from your will as witnesses. So for example, if you’re drafting a will that leaves assets to your spouse, children, siblings or parents, none of them would be able to witness the will’s signing since they all have an interest in the will’s terms. Will-making rules can also exclude relatives or spouses of any of your beneficiaries. For instance, say you plan to leave money in your will to your sister and her husband with the sister being the executor. Your sister can’t be a witness to the will since she’s a direct beneficiary. And since her husband has an indirect interest in the terms of the will through her, he wouldn’t qualify as a witness either.

But married couples can witness a will together, as long as they don’t have an interest in it. So, you could ask the couple that lives next door to you or a couple you know at work to act as witnesses to your will.

You may also run into challenges if you’re asking someone who has a mental impairment or a visual impairment to witness your will. State will laws generally require that the persons witnessing a will be able to see the document clearly and have the mental capacity to understand what their responsibilities are as a witness.

Note that the witnesses don’t need to read the entire will document to sign it. But they do need to be able to verify that the document exists, that you’ve signed it in their presence and that they’ve signed it in front of you.

How to Choose Witnesses for a Will

If you’re in the process of drafting a will, it’s important to give some thought to who you’ll ask to witness it. It may help to make two lists: one of the potential candidates who can witness a will and another of the people who cannot act as witnesses because they have an interest in the will.

You should have at least two people who are willing to witness your will signing. This is the minimum number of witnesses required by state will-making laws. Generally, the people you choose should be:

  • Responsible and trustworthy
  • Age 18 or older
  • Younger than you (to avoid challenges presented if a witness passes away)
  • Free of any interest in the will, either directly or indirectly
  • Willing to testify to the will’s validity if it’s ever challenged

When it’s time to sign the will, you’ll need to bring both of your witnesses together at the same time. You’ll need to sign, initial and date the will in ink, then have your witnesses do the same. You may also choose to attach a self-proving affidavit or have the will notarized in front of the witnesses.

A self-proving affidavit is a statement that attests to the validity of the will. If you include this statement, then you and your witnesses must sign and date it as well. Once the will is signed and deemed valid, store it in a secure place, such as a safe deposit box. You may also want to make a copy for your attorney to keep in case the original will is damaged or destroyed.

The Bottom Line

A last will and testamentMaking a will can be a fairly simple task if you don’t have a complicated estate; it can even be done online in some situations. If you have significant assets to distribute to your beneficiaries or you need to make arrangements for the care of minor children, talking with an estate planning attorney can help you shape your will accordingly. Choosing witnesses to your will is the final piece of the puzzle in ensuring that it’s signed and legally valid.

Tips for Estate Planning

  • Consider talking to a financial advisor about will-making, trusts and how to create a financial legacy for your loved ones. If you don’t have a financial advisor, finding one doesn’t have to be difficult. SmartAsset’s financial advisor matching tool can help you connect with professional advisors in your local area in just a few minutes. If you’re ready, get started now.
  • A will is just one document you can include in your estate plan. You may also opt to establish a living trust to manage assets on behalf of your beneficiaries, set up a durable power of attorney and create an advance healthcare directive. A trust can help you avoid probate while potentially minimizing estate taxes.

Photo credit: ©iStock.com/djedzura, ©iStock.com/SanyaSM, ©iStock.com/Spanic

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Source: smartasset.com

I Thought I Was Too Good For Community College

4 reasons you should go to community college firstWhether you are about to head to college (no matter what your age may be), if you have a child who is about to attend college, or if you know someone who is about to experience this, then this article is for you.

When I was around 17, I applied to several different colleges, but one mistake I made was that I didn’t even give community college a thought.

Unfortunately, there is a stigma attached to going to community college, like thinking it is for those that can’t get into a “regular” college, for those that don’t have enough money, or for those that have no other options. When, in fact, these are all far from the truth.

And, sadly, I bought into these myths and thought I was too good for community college. If you want to save money in college, community college is a great way to do that.

The stigma about going to community college is absolutely ridiculous.

And, I was a young kid, so, of course, I let other people’s opinions get to me. And, I thought everyone was right!

It isn’t just kids that believe those myths about community college, as even adults (parents or returning learners) buy into those myths.

Well, that is a big mistake!

For many people, community college should be their first choice.

College costs are increasing, and they’re not going to stop anytime soon.

According to College Board, the average yearly tuition and fees for a:

  • Private four-year college is $32,410.
  • Public four-year college for out-of-state students is $23,890.
  • Public four-year college for in-state students is $9,410.

Community college, on the other hand, is just $3,440.

Those tuition differences are huge, and just look at how much you could save if you did only your first year at community college!

For many people, going to college means taking out loans, and according to a student survey done by Nerdwallet, 48% of undergrad borrowers said they could have borrowed less and still have afforded their educations. And, 27% regretted going to a school that required them to take out loans to afford their tuition.

I know this regret personally.

I only spent one summer semester taking classes at community college, where I earned 12 credits, and I still regret not taking more. I probably could have saved over $20,000 by taking more classes at my local community college.

Yes, I could have saved that much money!

Whether you are in college already or if you haven’t started yet, taking classes at a community college can be a great way to save money.

Today, I want to talk about common myths I hear about community college, so that I can persuade more people to give it a shot. It can save you so much money, and is a great option for a lot of people.

Related content:

  • Should I Ruin My Retirement By Helping My Child Through College?
  • FAFSA Tips So That You Can Get The Most Financial Help For College
  • Learning How To Survive On A College Budget
  • How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500
  • How Blogging Paid Off My Student Loans
  • 16 Best Online Jobs For College Students

Here are common myths about attending community college:

 

But, all of my credits won’t transfer.

This is the top reason (and myth) I hear for not attending community college.

If you take the correct steps, the credits you earn at a community college will transfer.

If you decide to go to a community college first, always make sure that the 4-year college you plan on attending afterwards will accept all of your credits. It’s an easy step to take, so do not forget to look into this! You should take this step before you sign up and pay for any classes at the community college so that you are not wasting your time.

My four-year university made it easy and had a printed list of what transferred from the local community college – it’s seriously that easy! I’m sure many universities do this as well.

When I took classes for college credit in high school and at the community college, I made sure that all of the classes transferred to the university in which I was getting my degree from.

I have heard too many stories about people not checking this ahead of time and wasting years by taking classes that didn’t transfer, which means you are wasting time and money.

Make sure you get it in writing and talk to your college counselor as well about this. They can help you determine which ones will transfer and provide you proof of transferability.

Also, know that by accepting transfer credits, your four-year university is basically saying “these community college credits mean the same thing here.”

 

Community college won’t actually save me that much money.

I want to repeat, the average yearly tuition and fees for a:

  • Private four-year college is $32,410.
  • Public four-year college for out-of-state students is $23,890.
  • Public four-year college for in-state students is $9,410.

And, community college is $3,440.

As you can see, college tuition is a significant amount of money, and it is a drastic difference between four-year institutions and community college.

Now, the problem here is that many people “afford” college by taking out student loans, so the amount of money you are paying for college isn’t an immediate thing that you “feel” – because it’s all debt!

Note: If you are a parent and you are thinking about taking on debt to put your child through school, please, please, please consider having them attend community college first. Please, also read Should I Ruin My Retirement By Helping My Child Through College?

 

The classes won’t be as good.

I’ve heard this community college myth over and over again. Many people think that the classes won’t be “good enough” for them. That is usually far from the case, though. Your first two years, no matter where you go, are most likely going to consist of very generic classes or classes that are similar, if not the same, as ones at the four-year college you are thinking about attending.

It’s usually not until the last two years, after you get those beginner classes and electives out of the way, that your classes really begin to matter for your degree.

And, if you’re afraid you really need more of those beginner classes from a four-year college, I recommend at least taking a summer semester or two at your community college for elective classes. There are usually lots of elective options at community college, and you can at least take those at a more affordable rate. That is exactly what I did – one summer while I was attending my four-year college, I enrolled at the community college for a bunch of electives. I was able to easily, and affordably, knock out a bunch of electives.

 

My degree will be worth less coming from a community college.

When you graduate with a four-year degree, the school name on your diploma will be the name of the college you graduated from. It won’t say, “graduated from here but took some classes at community college.” This is because your community college credits transferred (if you followed the step above).

So, no worries here.

Nowhere on my college degree does it say that I took some classes at the community college.

Did you attend community college? Why or why not?

The post I Thought I Was Too Good For Community College appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

What Is a Nuncupative Will?

Elderly woman near deathMaking a last will and testament is an important part of your estate plan and there are different types of wills to choose from. A nuncupative will, meaning a will that’s oral rather than written, may be an option in certain circumstances. While state will laws typically require that a will be written, signed and witnessed to be considered legal, there are scenarios in which an oral will could be upheld as valid. Understanding how a nuncupative will works, as well as the pros and cons, can help with shaping your will-making plans if you have yet to create one.

A financial professional can offer advice on investing, retirement planning, financial planning and various other areas of finance. Find a financial advisor today. 

Nuncupative Will, Defined

A nuncupative will simply means a will that isn’t written. Instead, it’s delivered verbally by the person who intends to make the will.

Nuncupative wills are sometimes called deathbed wills since they’re often created in end-of-life situations where a person is too ill or injured to physically draft a will. The person making the will, known as a testator, expresses wishes about the distribution of property and other assets to witnesses.

How Does an Oral Will Work?

Ordinarily, when creating a will you’d draft a written document identifying yourself as the will maker and spelling out how you want your assets to be distributed after you pass away. You could also use a will to name legal guardians for minor children if necessary and name an executor for your estate.

An oral will sidesteps all that and simply involves the person making the will expressing his or her wishes verbally to witnesses. There would be no written document unless one of the witnesses or someone else who is present chooses to copy down what’s being said. The person making the will would have nothing to sign and neither would the witnesses.

There’s a reason oral wills are no longer used in most states: Without a written document that’s been signed by the person making the will and properly witnessed, it can be very difficult to prove the will maker’s intentions about how assets should be distributed or who should be beneficiaries.

Are Nuncupative Wills Valid?

Elderly man near death

This type of will is no longer considered valid in most states. Instead, you’ll need to draft a written will that follows your state’s will-making guidelines. For example, most states require that the person making a will be at least 18 and of sound mind. The will also has to be witnessed by the required number of people who don’t have a direct interest in the will’s contents. Depending on where you live, you may or may not need to have your will notarized.

There are a handful of states that still allow oral or verbal wills, however. But they’re only considered valid under certain circumstances.

In North Carolina, for example, oral wills are only recognized if:

  • The person making the will believes death is imminent
  • The witnesses are asked to testify to the will
  • Both witnesses are present with the testator when the will is dictated
  • The testator states that what he or she is saying is intended to be a will
  • An oral statement is made to at least two competent witnesses
  • The testator then passes away

Even if those conditions are met, the heirs to the will would still have to bring a legal action to have it admitted to probate court. The witnesses would have to testify to what was said and even then, North Carolina still doesn’t allow for the transfer of real estate through an oral will.

In New York, the guidelines are even narrower. New York State only allows nuncupative wills to be recognized as legal and valid when made by a member of the armed services during a time of war or armed conflict. The intentions of the person making the will has to be stated in front of two witnesses. State law automatically invalidates them one year after the person leaves military service if they don’t pass away at the time the will was made.

How to Prepare a Will

Having a written will in place can help your loved ones avoid problematic scenarios about how to divide your property after you pass away. If you don’t have a will in place yet, you risk dying intestate. There are a couple of ways you can create one.

The first is using an online will-making software. These programs can guide you through the will-making process and they’re designed to be easy enough for anyone to use, even if you’re not an attorney. If you have a fairly simple estate then using an online will-making software could help you create a will at a reasonable cost.

On the other hand, if you have a more complex estate then you may want to get help with making a will from an estate planning attorney. An attorney can help ensure that your will is valid and that you’re distributing assets the way you want to without running into any legal snags.

Generally, when making a will you should be prepared to:

  • Name an executor for your estate
  • Name a guardian for children if necessary
  • Specify who or which organizations you want to inherit your assets

When making a will, it’s important to remember that some assets can’t be included. For example, if you have any assets that already have a named beneficiary, such as a 401(k), individual retirement account or life insurance policy, those would go to the person you’ve named.

And it’s also important to note that a will is just one part of the estate planning puzzle. If you have a more complex estate then you may also need to consider setting up a living trust. A trust allows you to transfer assets to the control of a trustee, who manages them on behalf of the trust’s beneficiaries. Trusts can be useful for minimizing estate taxes and creating a legacy of giving or wealth if that’s part of your financial plan.

The Bottom Line

Dying person holds hands with a loved oneNuncupative wills are rare and while some states do recognize them, they generally aren’t valid in most circumstances. If you don’t have a will in place, then creating one is something you may want to add to your financial to-do list. Even if you don’t have a large estate or you’re unmarried with no children, having a will can still provide some reassurance about what will happen to your assets once you pass away.

Tips for Estate Planning

  • Consider talking to a financial advisor about will making and estate planning. If you don’t have a financial advisor yet, finding one doesn’t have to be complicated. SmartAsset’s financial advisor matching tool can help. By answering a few brief questions online you can get personalized recommendations for professional advisors in your local area. If you’re ready, get started now.
  • Along with a will and trust, there are other legal documents you might incorporate into your estate plan. An advance healthcare directive, for instance, can be used to spell out your wishes in case you become incapacitated. Power of attorney documents allow you to name someone who can make medical or financial decisions on your behalf when you’re unable to.

Photo credit: ©iStock.com/FatCamera, ©iStock.com/Sean_Warren, ©iStock.com/LPETTET

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Source: smartasset.com

How Do You Use a Degree That Isn’t Very Specific?

Hello! Enjoy this post from my friend Martin. I know this situation applies to many out there (the possibility of what you or others may believe to be useless degrees), so hopefully this post can help someone out! 

“Why did you waste your time on that degree?”

The most ignorant question in the world. You deserve a smack across the face if you’ve ever asked anyone this. There’s no such thing as a waste of time if you learned a few things and opened your eyes a little. Also, it’s none of your business what someone else studied, unless you of course paid for their full education.

Why would you ask someone this?

The person with the degree doesn’t possess the power to time travel and change things. It’s already too late. They have the degree proudly hanging on the wall. There’s no need to be a ruthless jerk who puts down their friends. The person on the other end will get highly defensive and the argument won’t be pretty.

Why would you ask such an ignorant question?

Sadly, European relatives ask this all of the time. So do friends on Facebook. Most people will ask about why you studied what you did. It’s fairly standard small talk.

 

Do you need to earn a highly targeted degree?

All stats out the window, the answer is no.

You don’t need to do anything. You can’t force yourself to study a topic that you despise for four years of your life. This never ends well. If you do complete your studies and find work in the field, you won’t be happy because you never wanted to do this in the first place.

Can you imagine working in a field that you despise until you’re 65? That’s at least 40 years. That would be one miserable existence.

While I highly suggest that you study a subject that can open up opportunities for you after college, I also realize that not everyone has life figured out in their teens.

When I had to decide what I wanted to study I was 17. Due to my late birthday, I had to figure everything out at this young. I remember choosing a community college because I had no clue of what else to choose. I started at a community college at 17 and somehow managed to survive. I was completely clueless about why I was even there.

You can’t be expected to have your life figured out in your teens. It’s okay if you don’t study the most specific topic.

 

How do you use a degree that’s not in demand?

Well, you don’t have to find a work in your specific field. There’s no rule that states you need to work as a Historian just because you studied history.

You don’t have to find work in the exact field that you studied. You have other options, such as:

  • Totally changing gears. You can pick up a trade or find work in a totally new field. Some of my friends have become bloggers and front line management.
  • Starting your own business. Do you have a business idea in mind?
  • Graduate school. My friend went to graduate school since they had high grades and found work in management.
  • Using your alumni relations connections. Your alumni department could open your eyes.
  • Travel. Have you thought about teaching English abroad?

If your degree isn’t in demand, that’s okay because you can still be in demand. You don’t have to live and die based on your degree. You’re not your degree. You have more to offer this world than the piece of paper that you picked up on stage.

 

Should you feel guilty about having useless degrees?

Nope.

There’s no rule that states you must work in the field that you studied. Most of my friends are in completely unrelated fields. I don’t really know anyone that went to directly find work in their specific field. The only friends that are using their degrees 100% are my friends who became teachers and nurses. Those fields are very specific and you can’t get in without the correct credentials.

Everything else can’t be taught.

Do you think there’s a four year program for bloggers like Michelle? Hell no.

Do you think there’s a program that teaches you how to solve problems? Not really.

Is there a college degree that encourages you to take risks? Nope.

College is a wonderful experience. This is your first taste of the following:

  • Freedom.
  • Responsibilities.
  • Deadlines.
  • Love.
  • Failure.
  • Massive hangovers.
  • Depression.
  • Confusion.

Very little of what you study in college will be used in your real life. I hate to admit this, but I don’t remember anything from the classroom lectures when I look back.

Why did I attend college?

I earned my degree in business so that I could tell people that I got my degree in business. Plus, I was the oldest boy in my family and the first to attend college. Making my parents proud was priceless. Oh, and I didn’t want to get kicked out of the house.

The world’s not going to end because your degree isn’t in the most profitable field. You’re not a failure because you studied something that interested you. It’s your life. You did what you wanted to. If you didn’t study anything specific then that’s okay because you’e not restricted to one field of work. You just need to decide on what you’re going to do next.

Are you using your college degree? Why or why not? Do you have useless college degrees?

 

The above is a post from Martin of Studenomics, where you can read about financial freedom and not have to worry about missing a party. Martin has just launched, Next Round’s On Me, where he helps you with your financial journey in your 20s.

The post How Do You Use a Degree That Isn’t Very Specific? appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

An Overview of Filial Responsibility Laws

Father in a wheelchair and son outsideTaking care of aging parents is something you may need to plan for, especially if you think one or both of them might need long-term care. One thing you may not know is that some states have filial responsibility laws that require adult children to help financially with the cost of nursing home care. Whether these laws affect you or not depends largely on where you live and what financial resources your parents have to cover long-term care. But it’s important to understand how these laws work to avoid any financial surprises as your parents age.

Filial Responsibility Laws, Definition

Filial responsibility laws are legal rules that hold adult children financially responsible for their parents’ medical care when parents are unable to pay. More than half of U.S. states have some type of filial support or responsibility law, including:

  • Alaska
  • Arkansas
  • California
  • Connecticut
  • Delaware
  • Georgia
  • Indiana
  • Iowa
  • Kentucky
  • Louisiana
  • Massachusetts
  • Mississippi
  • Montana
  • Nevada
  • New Jersey
  • North Carolina
  • North Dakota
  • Ohio
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Dakota
  • Tennessee
  • Utah
  • Vermont
  • Virginia
  • West Virginia

Puerto Rico also has laws regarding filial responsibility. Broadly speaking, these laws require adult children to help pay for things like medical care and basic needs when a parent is impoverished. But the way the laws are applied can vary from state to state. For example, some states may include mental health treatment as a situation requiring children to pay while others don’t. States can also place time limitations on how long adult children are required to pay.

When Do Filial Responsibility Laws Apply?

If you live in a state that has filial responsibility guidelines on the books, it’s important to understand when those laws can be applied.

Generally, you may have an obligation to pay for your parents’ medical care if all of the following apply:

  • One or both parents are receiving some type of state government-sponsored financial support to help pay for food, housing, utilities or other expenses
  • One or both parents has nursing home bills they can’t pay
  • One or both parents qualifies for indigent status, which means their Social Security benefits don’t cover their expenses
  • One or both parents are ineligible for Medicaid help to pay for long-term care
  • It’s established that you have the ability to pay outstanding nursing home bills

If you live in a state with filial responsibility laws, it’s possible that the nursing home providing care to one or both of your parents could come after you personally to collect on any outstanding bills owed. This means the nursing home would have to sue you in small claims court.

If the lawsuit is successful, the nursing home would then be able to take additional collection actions against you. That might include garnishing your wages or levying your bank account, depending on what your state allows.

Whether you’re actually subject to any of those actions or a lawsuit depends on whether the nursing home or care provider believes that you have the ability to pay. If you’re sued by a nursing home, you may be able to avoid further collection actions if you can show that because of your income, liabilities or other circumstances, you’re not able to pay any medical bills owed by your parents.

Filial Responsibility Laws and Medicaid

Senior care living areaWhile Medicare does not pay for long-term care expenses, Medicaid can. Medicaid eligibility guidelines vary from state to state but generally, aging seniors need to be income- and asset-eligible to qualify. If your aging parents are able to get Medicaid to help pay for long-term care, then filial responsibility laws don’t apply. Instead, Medicaid can paid for long-term care costs.

There is, however, a potential wrinkle to be aware of. Medicaid estate recovery laws allow nursing homes and long-term care providers to seek reimbursement for long-term care costs from the deceased person’s estate. Specifically, if your parents transferred assets to a trust then your state’s Medicaid program may be able to recover funds from the trust.

You wouldn’t have to worry about being sued personally in that case. But if your parents used a trust as part of their estate plan, any Medicaid recovery efforts could shrink the pool of assets you stand to inherit.

Talk to Your Parents About Estate Planning and Long-Term Care

If you live in a state with filial responsibility laws (or even if you don’t), it’s important to have an ongoing conversation with your parents about estate planning, end-of-life care and where that fits into your financial plans.

You can start with the basics and discuss what kind of care your parents expect to need and who they want to provide it. For example, they may want or expect you to care for them in your home or be allowed to stay in their own home with the help of a nursing aide. If that’s the case, it’s important to discuss whether that’s feasible financially.

If you believe that a nursing home stay is likely then you may want to talk to them about purchasing long-term care insurance or a hybrid life insurance policy that includes long-term care coverage. A hybrid policy can help pay for long-term care if needed and leave a death benefit for you (and your siblings if you have them) if your parents don’t require nursing home care.

Speaking of siblings, you may also want to discuss shared responsibility for caregiving, financial or otherwise, if you have brothers and sisters. This can help prevent resentment from arising later if one of you is taking on more of the financial or emotional burdens associated with caring for aging parents.

If your parents took out a reverse mortgage to provide income in retirement, it’s also important to discuss the implications of moving to a nursing home. Reverse mortgages generally must be repaid in full if long-term care means moving out of the home. In that instance, you may have to sell the home to repay a reverse mortgage.

The Bottom Line

elderly woman in a wheelchair outsideFilial responsibility laws could hold you responsible for your parents’ medical bills if they’re unable to pay what’s owed. If you live in a state that has these laws, it’s important to know when you may be subject to them. Helping your parents to plan ahead financially for long-term needs can help reduce the possibility of you being on the hook for nursing care costs unexpectedly.

Tips for Estate Planning

  • Consider talking to a financial advisor about what filial responsibility laws could mean for you if you live in a state that enforces them. If you don’t have a financial advisor yet, finding one doesn’t have to be a complicated process. SmartAsset’s financial advisor matching tool can help you connect, in just minutes, with professional advisors in your local area. If you’re ready, get started now.
  • When discussing financial planning with your parents, there are other things you may want to cover in addition to long-term care. For example, you might ask whether they’ve drafted a will yet or if they think they may need a trust for Medicaid planning. Helping them to draft an advance healthcare directive and a power of attorney can ensure that you or another family member has the authority to make medical and financial decisions on your parents’ behalf if they’re unable to do so.

Photo credit: ©iStock.com/Halfpoint, ©iStock.com/byryo, ©iStock.com/Halfpoint

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Source: smartasset.com

How Blogging Paid Off My Student Loans

How Blogging Helped With Paying Off Student LoansIn July of 2013, I finished paying off my student loans.

It was a fantastic feeling and something I still think about to this day. Even though I have a success story when it comes to paying off student loans, I know that many others struggle with their student loan debt every single day.

The average graduate of 2015 walked away with more than $35,000 in student loan debt, and not only is that number growing, the percentage of students expected to use students loans is on the rise. Plus, if you have a law or medical degree, your student loan debt may be in the hundreds of thousands of dollars.

This is a ton of money and can be quite stressful.

After earning three college degrees, I had approximately $40,000 in student loan debt.

To some, that may sound like a crazy amount of money, and to others it may seem low. For me, it was too much.

At first, paying off student loans seemed like an impossible task, but it was an amount I didn’t want to live with for years or even decades. Due to that, I made a plan to pay them off as quickly as I could.

And, I succeeded.

I was able to pay off my student loans after just 7 months, and it was all due to my blog.

Yes, it was all because of my blog!

Without my blog, there is a chance I could still have student loans. My blog gave me a huge amount of motivation, allowed me to earn a side income in a fun way, and it allowed me to pay off my student loans very quickly.

I’m not saying you need to start a blog to help pay off your student loans, but you might want to look into starting a side hustle of some sort. Blogging is what worked for me, and it may work for you too.

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I believe that earning extra income can completely change your life for the better. You can stop living paycheck to paycheck, you can pay off your debt, reach your dreams, and more, all by earning extra money.

This blog changed my life in many other ways, besides just allowing me to pay off my student loans. It allowed me to quit a job I absolutely dreaded, start my own business, and now I earn over $50,000 a month through it.

If you are interested in starting a blog, I created a tutorial that will help you start a blog of your own for cheap, starting at only $2.95 per month (this low price is only through my link) for blog hosting. In addition to the low pricing, you will receive a free blog domain (a $15 value) through my Bluehost link when you purchase at least 12 months of blog hosting. FYI, you will want to be self-hosted if you want to learn how to make money with a blog.

Below is how blogging helped me pay off my student loans.

 

Quick background on my student loans.

In 2010 I graduated with two undergraduate degrees, took a short break from college, found a job as an analyst, and in 2012 I received my Finance MBA. Even though I worked full-time through all three of my degrees, I still took out student loans and put hardly anything towards my growing student loan debt.

Instead, I spent my money on food, clothing, a house that cost more than I probably should have been spending, and more. I wasn’t the best with money when I was younger, which led to me racking up student loan debt.

After receiving my undergraduate and graduate degrees, the total amount of student loans I accumulated was around $40,000.

Shortly after graduating with my MBA I created an action plan for eliminating my student loans, and in 7 months was able to pay them all off. It wasn’t easy, but it was well worth it.

The biggest reason for why I was able to pay off my student loans is because I earned as much money as I could outside of my day job. I mystery shopped and got paid to take surveys, but the biggest thing I did was I made an income through my blog.

 

I worked my butt off on my blog.

Any extra time I had would go towards growing my blog. I woke up early in the mornings, stayed up late at night, used lunch breaks at my day job, and I even used my vacation days to focus on my blog.

It was a huge commitment, but blogging is a lot of fun and the income was definitely worth it.

While I was working on paying off student loans, I earned anywhere from $5,000 to $11,000 monthly from my blog, and that was in addition to the income I was earning from my day job.

This helped me tremendously in being able to pay off my student loans, especially in such a short amount of time.

 

My blog allowed me to have a lot of fun.

One reason why I was able to work so much between my day job and my side hustling is that I made sure my side hustles were fun. Because I didn’t like my day job, I knew I just didn’t have it in me to work extra on something everyday if I didn’t enjoy it.

That’s where blogging came in.

Blogging is a ton of fun, and I have made many great friends. At times it can be challenging (the good type of challenging!) but also a lot of fun. I love when I receive an email from a reader about how I helped them pay off debt, gave them motivation, taught them about a certain side hustle, and more. Helping others along the way is another part of what really makes it worthwhile.

The fun I had blogging made it feel like a hobby, and that’s why I was able to put a crazy number of hours into it.

 

I focused on growing and improving my blog.

I knew I had to keep earning a good income online in order to pay off my student loan debt, so I made sure that I spent time growing and improving my blog as well. Since I love blogging so much, this was a fun task for me.

Improving my blog included learning about social media, growing my website, knowing what my readers want, producing high-quality content, keeping up with changes in the blogging world (things change a lot!), and more.

 

I put nearly every cent from side hustling towards paying off student loans.

One thing I did with the extra income I earned each month was putting as much of it as I could towards paying off student loans, and this way I wasn’t tempted to spend the income on something else.

So, as I earned money from my blog, I put it towards paying off student loans as quickly as I could.

This is probably easier said than done, though.

When you start earning a side income it can be very tempting to buy yourself some things. After all, you are tired, you have been working a lot, and therefore you may justify purchases to yourself.

But before you know it, you may have just a fraction of what you’ve earned left and able to put towards paying off your student loans.

It’s better to think about WHY you are side hustling and put a majority of the income you earn towards that instead.

 

I stayed positive when paying off student loans.

It was hard to manage everything. I was working around 100 hours each week between my day job and my side jobs, which left little time for sleep or seeing loved ones.

Luckily, I love blogging and that made it much easier to spend so much time on my blog. Watching my student loans get paid off and the debt going down was a huge motivator.

At first I thought it was impossible, and now I know it wasn’t!

Paying off my student loan debt has been one of the best choices I have ever made.

Do you have student loan debt? How are you paying off student loans?

The post How Blogging Paid Off My Student Loans appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

COVID-19 Gives a Boost to Estate Planning: How You Can Get a Will Done—and Fast

courtneyk/Getty Images

Here’s the macabre truth: With hundreds of thousands of confirmed cases of COVID-19 across the country—and the death toll steadily rising—estate planners are reporting an increase in calls and transactions by people wanting to put their affairs in order in case of their death.

But estate planning isn’t just for those with a life-threatening diagnosis. In fact, if you’ve never considered who will inherit your assets, or whom you’d appoint to be your power of attorney, now’s probably a good time. We spoke with several experts to find out everything you need to know about quickly securing your assets during the pandemic—or beyond. Keep reading for all the details.

Estate planning with a lawyer vs. online

If you’re panicked about getting your estate planning done quickly, maybe you’ve wondered: Can’t I just do it online?

While many lawyers advocate for working with a professional, there are situations in which it might make sense to take the do-it-yourself online approach.

“If you’ve already taken stock of your assets and decided on how it should be managed, creating an estate plan is rather straightforward,” explains Felix Sebastian of Legal Templates. “An attorney can draft one up for you in a matter of hours, or you can do so yourself by using forms provided by your state government.”

For those with relatively simple estate planning goals (i.e., a limited number of assets and beneficiaries, and no special circumstances), online services can be a great option, with the added perk of having an incredibly fast turnaround time.

“We have streamlined the process to make it easy and efficient,” says Patrick Hicks, head of legal at Trust & Will. “Most people finish in 15 to 30 minutes, but the process is driven by the individual, so anyone can take more or less time as they desire.

“Our process is much like TurboTax,” he adds. “One easy question at a time, and each question will then lead you through the process to collect and synthesize all of your information and decisions. Most people can complete it all with no preparation and no other documents needed.”

__________

Watch: Our Chief Economist’s View on the Pandemic, Mortgage Rates, and What’s Ahead

__________

The downsides of DIY estate planning

If this sounds good to you, you wouldn’t be alone. Hicks says their service has seen a 50% increase in activity even compared with other busy times of the year, and Mary Kate D’Souza, founder of online estate planning service Gentreo, reported a 143% increase in membership over the past week alone.

And while there are certainly potential perks of using an online service (e.g., getting documents faster or saving money on lawyer fees), just be sure you understand what you’re actually getting: a set of unnotarized forms that will likely not include any sort of legal advice.

“Creating an estate planning document such as a will only gets you halfway there,” Sebastian says. “Pretty much every single state and territory of the U.S. requires that these documents be signed by witnesses and/or notarized.”

And on that note: While putting your online forms together can be done relatively quickly, it may end up taking you much longer to get those forms notarized, even if you have the option to do so remotely.

Lawyers urge clients not to delay their wills and trusts

If you’re considering working with a lawyer for your estate planning, the experts are advising you get to it—and fast.

“Since the COVID-19 outbreak, we have experienced a 30% increase in calls from people wanting us to draft powers of attorney, health care powers of attorney, and wills,” says family law and estate planning attorney Chelsea Chapman of McIlveen Family Law Firm.

Plus, beyond those new clients, estate planners are trying to juggle their existing roster of clients, too—who are, understandably, concerned.

“With the COVID-19 outbreak, we’re receiving an exponentially greater number of existing-client calls than usual,” says Judith Harris, an attorney and co-chair of the Estate Trust and Tax Group at Norris McLaughlin.

Although many law offices typically take several weeks to complete estate planning packages, exceptions can be made for emergency situations.

“In the event of an emergency, we can get documents done in 48 hours,” says Eido Walny, founder of the Walny Legal Group. “That’s one heck of a rush job, however, and would require skipping over a lot of other people in the process. As a result, clients who ask for that kind of turnaround should expect to offer all the cooperation that is asked of them and also to pay a hefty premium for the service. But it can be done.”

The final word

Ultimately, however you choose to get your estate planning done, there’s one key takeaway.

“Don’t wait,” Walny says. “Get the planning process started now. Estate planning is not death planning—these documents will help you during life, during illness, and also in death. Hopefully this crisis will pass, and when it does, these documents will continue to be valuable, unlike the 1,200 rolls of toilet paper hidden in the basement.”

The post COVID-19 Gives a Boost to Estate Planning: How You Can Get a Will Done—and Fast appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

Term Life vs. Whole Life Insurance: Which Is Best for You?

A smiling mother lays on her bed with two smiling young children. They are looking at a tablet together.

Taking out a life insurance policy is a great
way to protect your family’s financial future. A policy can also be a useful
financial planning tool. But life insurance is a notoriously tricky subject to
tackle.

One of the hardest challenges is deciding
whether term life or whole life insurance is a better fit for you.

Not sure what separates term life from whole
life in the first place? You’re not alone. Insurance industry jargon can be
thick, but we’re here to clear up the picture and make sure you have all the
information you need to make the best decision for you and your family.

Life Insurance = Financial
Protection for Your Family

Families have all sorts of expenses: mortgage payments, utility bills, school tuition, credit card payments and car loan payments, to name a few. If something were to happen and your household unexpectedly lost your income or your spouse’s income, your surviving family might have a difficult time meeting those costs. Funeral expenses and other final arrangements could further stress your family’s financial stability.

That’s where life insurance comes in. Essentially, a policy acts as a financial safety net for your family by providing a death benefit. Most forms of natural death are covered by life insurance, but many exceptions exist, so be sure to do your research. Death attributable to suicide, motor accidents while intoxicated and high-risk activity are often explicitly not covered by term or whole life policies.

If you die while covered by your life
insurance policy, your family receives a payout, either a lump sum or in
installments. This is money that’s often tax-free and can be used to meet
things like funeral costs, financial obligations and other personal expenses.
You get coverage in exchange for paying a monthly premium, which is often
decided by your age, health status and the amount of coverage you purchase.

Don’t
know how much to buy? A good rule of thumb is to multiply your yearly income by
10-15, and that’s the number you should target. Companies may have different
minimum and maximum amounts of coverage, but you can generally find a
customized policy that meets your coverage needs.

In addition to the base death benefit, you can enhance your coverage through optional riders. These are additions or modifications that can be made to your policy—whether term or whole life—often for a fee. Riders can do things like:

  • Add coverage for disability or deaths not commonly
    covered in base policies, like those due to public transportation accidents.
  • Waive future premiums if you cannot earn an income.
  • Accelerate your death benefit to pay for medical bills
    your family incurs while you’re still alive.

Other
riders may offer access to membership perks. For a fee, you might be able to
get discounts on goods and services, such as financial planning or health and
wellness clubs.

One
final note before we get into the differences between term and life: We’re just
covering individual insurance here. Group insurance is another avenue for
getting life insurance, wherein one policy covers a group of people. But that’s
a complex story for a different day.

Term Life Policies Are Flexible

The “term” in “term life” refers to
the period of time during which your life insurance policy is active. Often,
term life policies are available for 10, 20, 25 or 30 years. If you die during
the term covered, your family will be paid a death benefit and not be charged any future
premiums, as your policy is no longer active. So, if you were to die in year 10
of a 30-year policy, your family would not be on the hook for paying for the
other 20 years.

Typically, your insurance cannot be canceled
as long as you pay your premium. Of course, if you don’t make payments, your coverage will lapse, which typically
will end your policy. If you want to exit a policy you can cancel during an
introductory period. Generally speaking, nonpayment of premiums will not affect your credit score, as
your insurance provider is not a creditor. Given that, making payments on your
life policy won’t raise your credit score either.

The major downside of term life is that your
coverage ceases once the term expires. Ultimately, once your term expires, you need to reassess
your options for renewing, buying new coverage or upgrading. If you were to die
a month after your term expires, and you haven’t taken out a new policy, your
family won’t be covered. That’s why some people opt for another term policy to
cover changing needs. Others may choose to convert their term life into a
permanent life policy or go without coverage because the same financial
obligations—e.g., mortgage payments and college costs—no longer exist. This
might be the case in your retirement.

The Pros and Cons of Term Life

Even though term life insurance lasts for a
predetermined length of time, there are still advantages to taking out such a
policy:

  • Comparably lower cost: Term life is usually the more affordable type of life insurance, making it the easiest way to get budget-friendly protection for your family. A woman who’s 34 years old can buy $1 million in coverage through a 10-year term life policy for less than $50 a month, according to U.S. News and World Report. A man who’s 42 can purchase $1 million in coverage through a 30-year term for just over $126 a month.
  • Good choice for mid-term financial planning: Lots of families take out a term life policy to coincide with major financial responsibilities or until their children are financially independent. For example, if you have 20 years left on your mortgage, a term policy of the same length could provide extra financial protection for your family.
  • Upgrade if you want to: If you take out a term life policy, you’ll likely also get the option to convert to a permanent form of life insurance once the term ends if your needs change. Just remember to weigh your options, as your rates will increase the older you get. Buying another term life policy at 50 years old may not represent the same value as a whole life policy at 30.

There are some drawbacks to term life:

  • Coverage is temporary: The biggest downside to
    term life insurance is that policies are active for only so long. That means
    your family won’t be covered if something unexpected happens after your insurance
    expires.
  • Rising premiums: Premiums for term life
    policies are often fixed, meaning they stay constant over the duration of the
    policy. However, some
    policies may be structured in a way that seems less costly upfront but feature
    steadily increasing premiums as your term progresses.

Young Families Often Opt for Term Life

The rate you pay for term life insurance is
largely determined by your age and health. Factors outside your control may influence the rates you
see, like demand for life insurance. During a pandemic, you might be paying
more if you take a policy out amid an outbreak.

Most consumers seeking term life fall into
younger and healthier demographics, making term life rates among the most
affordable. This is because
such populations present less risk than a 70-year-old with multiple chronic
conditions. In the end, your rate depends on individual factors. So if
you’re looking for affordable protection for your family, term life might be
the best choice for you.

Term life is also a great option if you want a
policy that:

  • Grants you some flexibility for
    future planning, as you’re
    not locked into a lifetime policy.
  • Can replace your or your spouse’s
    income on a temporary basis.
  • Will cover your children until
    they are financially stable on their own.
  • Is active for the same length as
    certain financial responsibilities—e.g., a car loan or remaining years on a
    mortgage.

Whole Life Insurance Offers
Lifetime Coverage

Like with term life policies, whole life
policies award a death benefit when you pass. This benefit is decided by the
amount of coverage you purchase, but you can also add riders that accelerate
your benefit or expand coverage for covered types of death.

The biggest difference between term life and
whole life insurance is that the latter is a type of permanent life insurance.
Your policy has no expiration date. That means you and your family benefit from
a lifetime of protection without having to worry about an unexpected event
occurring after your term has ended.

The Pros and Cons of Whole Life

As if a lifetime of coverage wasn’t enough of
advantage, whole life insurance can also be a highly useful financial planning
tool:

  • Cash value: When you make a premium payment on
    your whole life policy, a portion of that goes toward an account that builds
    cash up over time. Your
    family gets this amount in addition to the death benefit when their claim is
    approved, or you can access it while living. You pay taxes only when the money
    is withdrawn, allowing for tax-deferred growth of cash value. You can
    often access it at any time, invest it, or take a loan out against it. However, be aware that anything
    you take out and don’t repay will eventually be subtracted from what your
    family receives in the end.
  • Dividend payments: Many life insurance
    companies offer whole life policyholders the opportunity to accrue dividends
    through a whole life policy. This works much like how stocks make dividend
    payments to shareholders from corporate profits. The amount you see through a dividend payment is
    determined by company earnings and your provider’s target payout ratio—which is
    the percentage of earnings paid to policyholders. Some life insurance
    companies will make an annual dividend payment to whole life policyholders that
    adds to their cash value.

Some potential downsides to consider include:

  • Higher cost: Whole life is more expensive than
    term life, largely because of the lifetime of coverage. This means monthly
    premiums that might not fit every household budget.
  • Interest rates on cash value loans: If you need emergency extra
    money, a cash value loan may be more appealing than a standard bank loan, as
    you don’t have to go through the typical application process. You can also get
    lower interest rates on cash value loans than you would with private loans or
    credit cards. Plus, you don’t have to pay the balance back, as you’re basically
    borrowing from your own stash. But if you don’t pay the loan back, it will be
    money lost to your family.

Whole Life Is Great for Estate Planning

Who stands to benefit most from a whole life
policy?

  • Young adults and families who can
    net big savings by buying a whole life policy earlier.
  • Older families looking to lock in
    coverage for life.
  • Those who want to use their policy
    as a tool for savings or estate planning.

To that last point, whole life policies are particularly advantageous in overall financial and estate planning compared to term life. Cash value is the biggest and clearest benefit, as it can allow you to build savings to access at any time and with little red tape.

Also,
you can gift a whole life policy to a grandchild, niece or nephew to help
provide for them. This works by you opening the policy and paying premiums for
a set number of years—like until the child turns 18. Upon that time, ownership
of the policy is transferred to them and they can access the cash value that’s
been built up over time.

If you’re looking for another low-touch way to leave a legacy, consider opening a high-yield savings account that doesn’t come with monthly premium payments, or a normal investment account.

What to Do Before You Buy a
Policy

Make sure you take the right steps to finding
the best policy for you. That means:

  • Researching different life insurance companies and their policies, cost and riders. (You can start by reading our review of Bestow.)
  • Balancing your current and long-term needs to best protect your family.
  • Buying the right amount of coverage.

If you’re interested in taking next steps, talk to your financial advisor about your specific financial situation and personal needs.

Infographic explaining the difference between term and whole life insurance policies.

The post Term Life vs. Whole Life Insurance: Which Is Best for You? appeared first on Credit.com.

Source: credit.com

Can I Inherit Debt?

Man trying to role a huge boulder labeled "DEBT" up a steep hillWhen someone passes away leaving debts behind, you might be wondering if you have any personal liability to pay them. If you have aging parents, for instance, you may be worried about having to assume responsibility for their mortgage payments, credit cards or other debts. If you’ve asked yourself, “Can I inherit debt?” the answer is typically no, even though those debts don’t automatically disappear. But there are situations in which you may have to deal with a loved one’s creditors after they’re gone.

How Debts Are Handled When Someone Passes Away

Debts, just like assets, are considered part of a person’s estate. When that person passes away, their estate is responsible for paying any and all remaining debts. The money to pay those debts comes from the asset side of the estate.

In terms of who is responsible for making sure the estate’s debts are paid, this is typically done by an executor. An executor performs a number of duties to wrap up a person’s estate after death, including:

  • Getting a copy of the deceased person’s will if they had one and filing it with the probate court
  • Notifying creditors and other entities of the person’s death (for example, the Social Security Administration would need to be notified so any Social Security benefits could be stopped)
  • Completing an inventory of the deceased person’s assets and their value
  • Liquidating those assets as needed to pay off any debts owed by the estate
  • Distributing the remaining assets to the people or organizations named in the deceased person’s will if they had one or according to inheritance laws if they did not

In terms of debt repayment, executors are required to give notice to creditors who may have a claim against the estate. Creditors are then giving a certain window of time, according to state laws, in which to make a financial claim against the estate’s assets for repayment of debts.

If a creditor doesn’t follow state guidelines for making a claim, then those debts won’t be paid from the estate’s assets. But if creditors are less than reputable, they may try to come after the deceased person’s spouse, children or other family members to collect what’s owed.

Not all assets in an estate may be used to repay debts owed by a deceased person. Any assets that already have a named beneficiary, such as a life insurance policy, a 401(k), individual retirement account, payable on death accounts or annuity, would be transferred to that beneficiary automatically.

Can I Inherit Debt From My Parents?

Pencil erasing the word "DEBT"

This is an important question to ask if your parents are carrying high amounts of debt and you’re worried about having to pay those bills when they pass away. Again, the short answer is usually no. You generally don’t inherit debts belonging to someone else the way you might inherit property or other assets from them. So even if a debt collector attempts to request payment from you, there’d be no legal obligation to pay.

The catch is that any debts left outstanding would be deducted from the estate’s assets. If your parents were substantially in debt when they passed away, repaying them from the estate may leave little or no assets for you to inherit.

But you should know that you can inherit debt that you were already legally responsible for while your parents were alive. For instance, if you cosigned a loan with them or opened a joint credit card account or line of credit, those debts are legally yours just as much as they are your parents. So, once they pass away, you’d be solely responsible for repaying them.

And it’s also important to understand what responsibility you may have for covering long-term care costs incurred by your parents while they were alive. Many states have filial responsibility laws that require children to cover nursing home bills, though they aren’t always enforced. Talking to your parents about long-term care planning can help you avoid situations where you may end up with an unexpected debt to pay.

Can I Inherit Debt From My Children?

The same rules that apply to inheriting debt from parents typically apply to inheriting debts from children. Any debts remaining would be paid using assets from their state.

Otherwise, unless you cosigned for the debt, then you wouldn’t be obligated to pay. On the other hand, if you cosigned private student loans, a car loan or a mortgage for your adult child who then passed away, as cosigner you’d technically have a legal responsibility to pay them. Federal student loans are an exception.

If your parents took out a PLUS loan to pay for your higher education costs and something happens to you, the Department of Education can discharge that debt due to death. And vice versa, if your parents pass away then any PLUS loans they took out on your behalf could also be discharged.

Can I Inherit Debts From My Spouse?

When marriage and money mix, the lines on inherited debt can get a little blurred. The same basic rule that applies to other situations applies here: if you cosigned or took out a joint loan or line of credit together, then you’re both equally responsible for the debt. If one of you passes away, the surviving spouse would still have to pay.

But what about debts that are in one spouse’s name only? That’s where it’s important to understand how living in a community property state can affect your liability for marital debts. If you live in a community property state, debts incurred after the marriage by one spouse can be treated as a shared financial obligation. So if your spouse opened up a credit card or took out a business loan, then passed away you could still be responsible for paying it. On the other hand, debts incurred by either party before the marriage wouldn’t be considered community debt.

Consider Getting Help If You Need It

If a parent, spouse, sibling or other family member passes away, it can be helpful to talk to an attorney if you’re being pressured by debt collectors to pay. An attorney who understands debt collection laws and estate planning can help you determine what your responsibilities are for repaying debts and how to handle creditors.

The Bottom Line

Son talks with his mother about her debtWhether or not you’ll inherit debt from your parents, child, spouse or anyone else largely hinges on whether you cosigned for that debt or live in a community property state in the case of married couples. If you’re concerned about inheriting debts, consider talking to your parents, children or spouse about how those financial obligations would be handled if they were to pass away. Likewise, you can also discuss what financial safety nets you have in place to clear any debts you may leave behind, such as life insurance.

Tips for Estate Planning

  • Consider talking to a financial advisor about how to manage and pay off debts you owe or any debts you might inherit from someone else. If you don’t have a financial advisor yet, finding one doesn’t have to be difficult. SmartAsset’s financial advisor matching tool can help you connect with an advisor in your local area. It takes just a few minutes to get your personalized advisor recommendations online. If you’re ready, get started now.
  • The Fair Debt Collection Practices Act caps the statute of limitations for unpaid debt collections at a maximum of six years, although most states specify a much shorter time frame. However, some debt collectors buy so-called zombie debts for pennies on the dollar and then – unscrupulously – try to collect on them. Here’s how to deal with such operators.

Photo credit: ©iStock.com/NiseriN, ©iStock.com/AndreyPopov, ©iStock.com/FatCamera

The post Can I Inherit Debt? appeared first on SmartAsset Blog.

Source: smartasset.com

How To Save Money On Textbooks + Campus Book Rentals Review

How To Save Money On Textbooks + Campus Book Rentals ReviewIf you are looking for tips on how to save money as a college student, then one of the top things you need to learn is how to save money on textbooks such as through cheap textbook rentals. In this post, I will be including a Campus Book Rentals review because I used this textbook rental company throughout college and was able to save a great amount of money with cheap textbook rentals.

P.S. I also have a Campus Book Rentals coupon code at the end of the post, so do not miss out on this valuable Campus Book Rentals coupon for the best textbook rental company out there!

When I was in college, I always made sure to save as much money as I could. College is expensive, and everyone knows that. The costs can quickly add up. Between the tuition, lab fees, parking fees, textbook costs, and more, college costs can quickly get out of hand.

I know and understand this. I graduated with around $38,000 worth of student loan debt, and that was even with me carefully managing my costs. Thankfully I paid off my student loans (read about how I paid off my student loans within 7 months), but I do like to help others in as many ways as I can.

According to the National Association of College Stores, the average college student spends around $700 per year on the cost of textbooks.

That could be a total of a little less than $3,000 for a 4 year degree just for the cost of textbooks, and as everyone knows, the cost can actually be much higher than that.

I actually think this number that is estimated is wrong, because I don’t really know anyone who bought their college textbooks and only spent $350 or less from their college bookstore on the cost of textbooks. That wouldn’t have even covered two college textbooks for me from my college bookstore.

When I was in college, many of my college textbooks were around the $200 price for just one textbook, and I often took 7 or 8 classes a semester. This means if I paid full price for each book (whether I bought them online or from my college book store), I would have sometimes paid around $1,600 each SEMESTER!

Or $3,200 a YEAR!

That is just insane.

Below are my tips on the best ways to save money on college textbooks:

 

Rent your college textbooks through cheap textbook rental websites such as Campus Book Rentals.

When I was in college, I saved a great deal of money by renting my college textbooks. As I said above, college textbooks for me were expensive if I were to not shop around and just stick with the expensive books at the college bookstore. Who wants to waste a ton of money on the cost of textbooks by buying them at full price?

NOT ME! You can save a lot of money on the cost of textbooks by renting them instead.

I often rented my college textbooks that were $200 at my college bookstore for less than $50 for the semester. There are definitely some cheap textbook rentals out there!

I often found cheap textbook rentals for $25 as well That is a STEAL! I always used coupon codes as well, as they can be found everywhere. Lucky you, if you keep reading I have a CampusBook Rentals coupon code as well! 🙂

It was easy to rent textbooks online. Here is the step by step process of renting textbooks online and my Campus Book Rentals review:

  • I just had to find my college textbooks online such as on CampusBookRentals. Campus Book Rentals is the best textbook rental I used when I was in college. They made it easy and have a large college textbook selection for students to choose from so that you find the exact textbook you need.
  • I would then order the textbook for whatever time frame I needed. You can usually rent them for 45 days, two months, a full semester, or even longer. The longer the time frame, the more expensive they are, of course.
  • I would use the textbook for a class. Of course, this is not a surprise!
  • Once you are done with the textbook, all you have to do is return it. You will be provided a return label, so the return shipping is absolutely free. You don’t have to worry about the textbook being outdated, a new edition being published, losing money, etc.

I also have a Campus Book Rentals coupon code for 5% off your total purchase plus FREE SHIPPING if you need one as well. I genuinely believe they are the best textbook rental company out there right now, or else I wouldn’t be writing this whale of a Campus Book Rentals review post. The Campus Book Rentals coupon code is snowfall5. All you have to do is click on my affiliate link (the Campus Book Rentals coupon code only works with the affiliate link) and once you are ready to check out, enter snowfall5 as the Campus Book Rentals promotional code.

 

Skip the college bookstore for cheap textbook rentals or buy textbooks used.

The college bookstore can be a big rip off. Sorry to everyone who has ever worked at one.

I have three college degrees, and have visited the college bookstore many times to compare prices, and I do not think there was a single occurrence where the price at the college bookstore was cheaper than the price I found somewhere else, such as through CampusBookRentals.

 

Sell your college textbooks.

Some of you might be saying, well why didn’t you just buy your textbooks used and then sell them back, instead of renting college textbooks? Well, this is because it often turned out that whenever I bought a textbook, the very next semester they would be considered “old” because a new edition would be published. No one really buys old editions of finance books as they are considered “outdated” by many professors.

However, there are many instances where selling your college textbooks can be a great idea, and you can make some money as well.  If you are looking to save money in college, then you should learn how to sell your college textbooks back so that they aren’t just hanging out in your house collecting dust.

Thank you for reading, I hope you enjoyed this Campus Book Rentals review and that you learned how to save money on textbooks and a new way on how to save money as a college student.

How do you save money on your college textbooks?

 

Campus Book Rentals coupon code for the best textbook rental company!

P.S. Here is the Campus Book Rentals coupon again as well since you took your time to read my Campus Book Rentals review. I have a Campus Book Rentals coupon code if you need one for even cheaper cheap textbook rentals. The discount will give you 5% off your total textbook purchase rental plus FREE SHIPPING. The Campus Book Rentals coupon code is snowfall5. All you have to do is click on my affiliate link (the Campus Book Rentals coupon code only works with the affiliate link) and once you are ready to check out, enter snowfall5 as the Campus Book Rentals promotional code. This coupon code is good until April 30, 2015, so you have plenty of time to use it for this semester’s classes.

 

The post How To Save Money On Textbooks + Campus Book Rentals Review appeared first on Making Sense Of Cents.

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