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11:43

usatoday - Moderator: Welcome to Your Money, Your will with Ted Sarenski. If you have any questions for Ted, feel free to submit them now.

11:47

usatoday - Welcome everyone. Ted Sarenski CPA/PFS here to assist you with your questions today. I'm glad to be a part of this and look forward to hearing from you.

12:00

[Comment From Bob]
I was given an "old" $1.00 bill by my Great, Great Grandfather over 35 years ago. Now I'm told that it is worth between $40k - $50k. If I sell it, I realize I am under obligation to pay taxes on the gain (100% of the sales price). If I trade it for gold would I still be required to pay taxes on it or could I defer the tax until actual cash was received?

12:04

usatoday -

Hello Bob. make sure you don't put that dollar bill in your wallet! There is a code section 1031 that allows for non-recognition of gain on exchange of property of a like kind. Property held primarily for sale is excluded from the section, which i believe both your dollar and the gold would be classified as. i do not believe you can exchange the two items tax free. You will have a taxable gain on the difference between what you receive in value and your one-dollar basis.

12:05

[Comment From Chuck]
Ted, I am a 56 year old single male. I have two adult children who live out of town. I own a modest home which is paid in full. What is the best way to prevent my children from having to rush through an estate sale like I did. Is it better to leave it to one child and compesate the other with cash

12:10

usatoday - Chuck, that is an interesting question that can involve a lot of what ifs. If i were one of your children and inherited the house while my sibling received an equal amount in cash, i might be a little upset that i needed to go through the process of selling a home in an area i do not live in while my sibling is away on a vacation with the funds he/she inherited. It sounds like you have enough cash to make the second child whole if one gets the home so i would suggest you leave each a 50% share in everything as they would not need to sell the home in a hurry to receive any cash from your estate.

12:10

[Comment From Richard]
What's involved in "retitling" assets you want to transfer to a living trust?

12:15

usatoday - Richard, to retitle assets to a living trust you just need to contact the institution where you have your assets held and give them the information of your trust (name and ID#). If you are transferring real estate you would need to file a quit claim deed with the county in which you live to have the title changed in the official document held at the county. You will also want to have a will, commonly referred to as a pourover will, to have any assets that have not been retitled to be collected and then "poured" into the trust.

12:15

[Comment From Dick]
Are wills made with the use of a soft ware program like "Will Maker" valid and what should be done to assure they're done right?

12:18

usatoday - Hello Dick. A will maded by a software program such as the one you mentioned can be valid. To assure they will be recognized you need witness signatures. I would suggest two witnesses sign in front of a notary for best results. Also, the people signing should be independent, that is, they should not be a part of the will such as beneficiary, guardian or trustee.

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