The Reality Reports

Trump Accounts have brought new attention to investing for children. However, families do not need a Trump Account to begin building wealth for a child. Parents and guardians have several other ways to invest in low-cost index funds, save for education, and create a financial head start.

Losing a parent brings grief, paperwork, and difficult decisions. One common concern is whether an adult child is allowed to tell a bank that a parent has died. In most cases, the answer is yes. A relative can notify the bank, even if that person is not the executor. However, reporting the death does not automatically give the relative access to the account or information about it.

Understanding The Probate Process: Probate is the court-supervised process used to settle a person’s estate after death. The court may confirm the will, appoint someone to manage the estate, require debts and taxes to be paid, and approve the transfer of remaining property. The process can take months or longer, depending on state law, the size of the estate, family disagreements, and other issues. Court filings may also become public records. Probate costs can include court charges, legal fees, appraisal costs, and payment for the estate’s representative. Probate is not always harmful or unnecessary. Court supervision can help resolve disputes and protect creditors and beneficiaries. Still, many families prefer to transfer at least some property outside the process.

When a parent who receives Social Security disability benefits dies, many families worry about what will happen to the child’s monthly payments. The good news is that Social Security may continue supporting the child through survivor benefits. Understanding the rules can help families avoid confusion during a difficult time.

Lending money to people you care about seems like the right thing to do. When your sister needs help with rent or your best friend faces an emergency, saying no feels heartless.  But money has a way of changing relationships, and not always for the better.