THINGS I'VE LEARNED ABOUT FINANCES AS A WIDOW

I spend several mornings each week dealing with the many loose ends following the death of my spouse.  I know that much of what I am dealing with is due to the fact that many things were managed by my husband and left in disarray (because his death was completely unexpected) and others that I was not privy to due to his business and his desire to "shield me" from the reality of our financial situation.
In any case, if it is helpful at all for recently widowed women who find this post, I am going to set out a few things I have learned.

1.  Everyone says you need a lot of certified death certificates.  Frequently mentioned is to get at least a dozen of them.  Because of my husband's business - I got about 20 of them. Turns out this is one of the few areas where modern technology has changed the rules.  Many places were just fine with a scanned and emailed copy.  Some copied the original I brought in person and gave it back.  In fact, many requested that the Social Security number be blocked out for liability and privacy concerns.

I suggest starting with half a dozen and then order more if needed.  As they cost about $23.00  per copy - it makes no sense to have any extras sitting in a file - like I have.

2.   My husband was self employed.  I worked so we had healthcare benefits.  I didn't make a lot of money, but enough that it had an effect come tax time.  We changed my  401k  contribution to try to ease that - so 40% of my pay went into that account pre-tax.  Since here was a matching element - it grew fairly fast.  He asked me to take a large distribution shortly before he died.

The distribution he had me take was intended to go into a new retirement account he had opened -  a SEP IRA.  He made an issue of letting me know how I could access the account - however, either he didn't know or didn't consider the consequences if he died and we did not go through probate.  Under those conditions, I have no claim or access to the funds - at least per Vanguard Brokerage Services.  There is only a few hundred dollars in the account that they won't pay out to me for whatever arcane rules they get to hide behind.  (Unless I spend more money than is in the account to provide legal documents that satisfy "the rules".)

So the large sum I had just taken out of my 401k to be deposited into that account remained in my hands because he became ill before the transfer could be made.  The sole saving grace I managed out of the mess of finances I inherited.

The lesson?  Learn more about the various kinds of accounts there are and question the rules around them.  I did that when he became eligible for his pension.  He had planned to defer it until he was 70 because the value was so much higher.  I questioned what the rules were if something should happen to him before that milestone - and we learned I would end up with a tiny fraction of the amount as his widow.  We changed the option and he began taking the pension at 65.  Thank goodness I questioned it - wish I had done the same on the SEP IRA!!

3.  Credit cards - sigh.  

In the weeks following his death, each creditor received a phone call requesting the cancellation of the account and any auto payments.  That was followed by a notification letter and a death certificate.  AmEx kept calling and sending letters seeking probate information - we did not go through probate.

Apparently, even though I didn't sign anything, receive or use a card, a couple of the accounts somehow have my name attached to them.  The law is pretty vague on this especially in community property states. 

I would not be liable for the accounts he opened specifically for his business.  He was a solo practitioner and never filed as a corporation - so the accounts can be considered personal.  The credit companies can come after me to pay that debt.  How hard they will come at me remains to be seen.  I was advised to give out no information to anyone who contacts me from the companies or from third party entities.  I no longer answer calls from unknown numbers.

The good news as of now -  the companies he had personal loans with have not come to me for payment.  They seem to be less aggressive about repayment.

I did hear from the bank for my personal credit cards that they are reducing my credit limits by half.  The credit reporting companies are definitely tagging me with his outstanding debts.  I realize it is early days and this is probably far from over, I keep my personal cards and auto loans paid up and hope eventually my credit rating will improve.

4.  With the pandemic, the IRS is backed up.  It does appear that the very expensive tax attorneys I hired are working some magic on the issues of back taxes, payment plans, liens, etc.  Should know soon.  The State of California - not so much - they want payment in full and it is a doozy - wouldn't you know he had a very good income last year.  They are giving me five years to pay off the 2019 taxes.

5.   Bottom line - if you are facing big tax and credit issues - I would advise that the expense of hiring professional help is worth it.  Not those credit fix companies!!  Law Firms or  CPA firms which specialize in these issues.  Call and talk to multiple people until you feel a good fit and communication style.  I had some pretty insulting and negative conversations until I found the great people I am working with.

6.  Remember that this will all settle out.  It may take time and more money that you don't really have to spend to help resolve it - but it will be resolved over time.  This is one area I think it is best to let time pass before making any decisions. The pressure is enormous to just make it go away - resist that urge and take your time.  

FRIDAY FAST ONES

1.)  Ever notice that if a letter comes in the mail marked Personal and Confidential you can be sure it is junk mail?

2.)  There were 2,100,000 viewers of the HBO series premier of "The Newsroom."  Sad that there are less than 100,000 viewers of the Rachel Maddow Show which is excellent real live reporting 5 days a week.

Sadder still that O'Reilly over on Fox gets 2-3 million viewers.

3.)  A 14 year old ballet dancer sponsored an online petition to get Seventeen Magazine to stop photoshopping their models - and it worked.

The Seventeen staff has signed an eight-point Body Peace Treaty, promising not to alter natural shapes and include only images of "real girls and models who are healthy."  Next they are going after TeenVogue.  Hopefully the advertisers will take notice of this desire for the natural.

4.)  I keep hearing negative things about "small" employers looking for ways to evade offering health insurance as the Affordable Care Act requires.  What is it to these employers to offer insurance?  There is no mandate that they pay any part of it.  They simply have to use their position as employers to offer plans which would not be available, or as inexpensive as when offered as a group plan.

I set up the insurance plan for our tiny company (3 employees and the owner) It took very little time and cost nothing to arrange. I made some adjustments to our payroll software and the deductions and tax info are automatic.  So even administrative costs aren't a valid argument.  Any ideas about this?  Educate me.

5.)  So glad the spell check is back...the function has been missing from Blogger for a week or so.

6.)  An odd week with a day off in the middle.  No complaints that it is the weekend again!  Enjoy.

SOLAR ENVY

Our neighbors just had solar panels installed on their roof and I feel envious every time I pass their house. I didn't feel the same way when the people across the street painted their house or when I saw new flooring going in down the street -  it is the solar that takes my heart.

If we ever own a house again, I am going to have solar and, if the recent study, "Peer Effects in the Diffusion of Solar Photovoltaic Panels," conducted by Bryan Bollinger of the NYU Stern School of Business and Kenneth Gillingham of the Yale School of Forestry & Environmental Studies, is true, it will be contagious.

The report confirms that, “there is a positive, statistically significant, causal effect of previous nearby installations on a household’s decision to adopt solar panels…A one percent increase in the zip code installed base leads to approximately a one percent increase in the zip code adoption rate.” And at the street level, the study found that a one percent increase in installed solar leads to a nine percent increase in the street adoption rate.

In other words, if one home on the block gets solar, then other homeowners follow.  When the solar company drops the rate for multiple neighborhood installations, the number increases even more substantially.  Here in California, the utility company, PG&E, actually benefits when customers use less energy or go completely off-grid. The company recently invested $61 million in SolarCity and $100 million in SunRun, another solar leasing company.  (I don't really like the leasing thing, but that is another story.)

Most people who install solar do it to save money, seeing my sister's meter running backwards sure sold me on that.  But there is just something about seeing those panels soaking up the natural energy of the sun and using it to power things - it just gets me so excited.  Maybe I should invite our landlords over to see Nancy's meter, or better yet, to see the house down the street with the nice new panels on the roof!

MORE JOB CONUMDRUMS

I am pretty sure that I related here that when the long awaited benefits package kicked in it eviscerated my paycheck.  It was such a shock to see what little remained that I actually felt dizzy when I saw the pay stub.  I got depressed but Tom got mad and insisted that I start looking for a better paying job.

Having just spent over a year to get this job with benefits - I was not thrilled with that challenge.  For those who may not follow the travails of job hunting, there are many.  A new trend is to only hire those who are already employed.  The thinking is that those who are unemployed, especially for any length of time, are defective and not the "top performers" companies want to add to their staff.  This approach also leaves more older workers hung out to dry as many companies laid-off the older, experienced, higher paid workers - not just under performers...

The businesses less picky about the employment status of those they hire make up the 76% of the new jobs generated in 2010.  Those jobs are of the low-paying variety, offering between $9 to $15 an hour. Some people can get by quite handily on $9 or so an hour -- especially if they're willing to live outdoors or on a friend's couch according to Barbara Ehrenreich in an article on CNN.

I can live in a nice little rental house (because of my husband's income) but when it comes to expenses beyond gas, groceries and utilities - there just isn't anything left.  So my employment is not contributing to the growth of our economy and neither will the other 76% of "new job" holders.

But I digress...

I did start applying for new jobs and it fairly quick order I got a call for an interview.  The job was for "Receptionist/Staffing Trainee/Business Development for a staffing agency.  The multiple interviews went well, they wanted to hire me as a temp to see if I would be a good fit for the job on a permanent basis.  They offered no benefits and $13.00 per hour. I was seriously thinking about taking it because of the improved opportunity for wage increases and now that I had benefits, I could use the COBRA coverage going forward.

I ended up telling them at the hotel about this new possibility - in part because someone gave notice and in part to see if they might improve my position to retain me.  Ultimately they did and I am staying put.  The other position seemed too iffy, even though I am sure I would have been able to handle the work,  after being let go from the vet job I was worried that there might be one of those "fit" issues and there I'd be without any job. 

I had a real heart to heart talk with the General Manager of the hotel and while she agreed that they don't pay a "living wage."  The people who own the hotel have refused to increase wages (for over 3 years) or to cover more of the insurance costs.  She said they don't like having employees.  So, they have a lovely hotel full of really hard working and loyal employees but because they would rather not have to deal with employees - these very wealthy people just refuse to acknowledge how much they contribute to their financial success. 

I am lucky to have a job with hours that gives me free time during the day. I am happy that they wanted to retain me and made the effort to increase my salary.  I work hard and thoughtfully and will until I move on to another job - one, I hope, that pays me what I am worth.

CHEERS FOR A BETTER NEW YEAR

I spent the last day of this year shopping with my sister for a big staging job we have later next week.  We overflowed  3 shopping carts at the Home Goods store.  Others in line guessed that we must be staging a home - that or just having way too much fun!  We then re-grouped to a restaurant to have lunch and gather our thoughts about what we have and what we still need - this job is a big house with a mother-in-law unit downstairs which we decided to stage with a man cave/party room theme.  And yes.  It is fun!

We are certainly hoping that these two jobs are a signs of a busy new year in our new venture - the shopping is enjoyable, but expensive and it is hard to know what to keep and what to return when we are unsure of the number of jobs we may have at any given time and how long the homes may remain on the market with our inventory inside! 

My "day job" may go full time soon, too.  As I know I have mentioned over and over, Tom wants me to be the one to bring in the medical benefits so we don't have to fund them through his business.  The hotel offers benefits for 4 shifts per week and someone has left - unfortunately, she is the other Saturday/Sunday person.  We are trying to figure out if there is a way to make me full-time by working double shifts every weekend for the time being.  Crazy, but I would do it...

As for the New Year's Eve happenings - we are home, I am cooking and I can't say if I will see the ball drop as 2011 is welcomed.  I will say that I am much happier and healthier going into this new year than the last.  I wish the best to all my friends!

JOB UPDATE

Because I kind of  left things hanging, an update on my new job.  Turns out the HR guy took Friday off so I did not start training last weekend as the supervisor hoped.  I will start this Friday night - which is a bit unfortunate in timing as it is Ally's 17th birthday. 

The good news is that the pay is better than I had thought, the bad news is that the position is not 30 hours (full time) as presented but 24 hours (part time.)  Good news is that they still offer benefits!  But at a reduced contribution rate from the employer.  The health insurance should still be less expensive than our Cobra payments, though because they are a much larger employer.  I'll know more in 90 days.

That's it for now!

I KNEW THIS WOULD HAPPEN

My sister Polly and I have decided on a name for our new company.  I have registered our domain name, started designing our website and blog.  I signed up for an e-mail account.  We are deciding on fonts and colors and styles.  I am writing, writing, writing for brochures, website, price lists.  We are planning how to organize our inventory.  We have been interviewing people in the field to learn more for our marketing plan.  We are very excited and jazzed up about our new venture!

And what happened?  Out of the blue I got an e-mail from a company to come in for a job interview.  I had a great conversation with the HR woman a couple of months ago, but my test scores didn't qualify me for the position they were filling at that time and she kept my resume...

A job interview is not a job offer, as I well know.  Tom, however, is expecting me to go after this job opportunity because it comes with full benefits.  Considering that I just paid $365 for a filling for Ally (she needs another filling done and I have been putting it off because, well, no dental insurance for the past 7 years...)  I can't say as I blame him for his insistence.

So, I finally have something I am excited about doing  AND I must go into an interview tomorrow afternoon and be convincing that I want to become an Insurance Verification Specialist.  Friends out there in blogland, please send out your positive thoughts.

One way or the other would be fine.