Unmarried co-titled adults fulfilling 24-out-of-60-month occupancy eligible for 250K exemption

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DEAR BENNY: My partner and I have a very serious decision to make quite soon. Can unmarried, co-titled adults on a property, having fulfilled the 24-out-of-60-month occupancy requirement each be eligible for the $250,000 exemption? –Pamela

DEAR PAMELA: The answer is yes. So long as both of your are on title, and have owned and lived in the property for two out of the five years before the property is sold, each of you is entitled to take the up-to-$250,000 exclusion of gain.

For more general information, I suggest that you go to http://www.irs.gov, click on Publications, and access and print Publication 523, entitled “Selling Your Home.” In fact, the Internal Revenue Service has a number of publications on many aspects of real estate, and all are free and worth reading.

Benny L. Kass is a practicing attorney in Washington, D.C., and Maryland. No legal relationship is created by this column.

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Opening up what is known as “ancillary” or “foreign” probate

DEAR BENNY: I live in Florida and am executor of the will of a friend in New York City who owned a one-half interest in a condo in Ocean City, Md. She wanted to give that interest to my nephew upon her death. How do I go about transferring her interest to him? Do I need an attorney? –Ronald

DEAR RONALD: Even if you went through probate in New York, since the deceased owned property in Maryland, you will have to open up what is known as “ancillary” or “foreign” probate in Maryland. It’s not too complex, although you may want to retain a local attorney in Ocean City to assist you.

Once the Maryland court probate proceeding has been established, you should have no problem issuing a personal representative (executor) deed to your nephew. To avoid any issues of conflict of interest, I assume that the will specifically states that the property interest is to go to your nephew.

The Strongest and Weakest U.S. Housing Markets #realestate

The Strongest and Weakest Housing Markets
By Louis Jones, Kiplinger’s Personal Finance, http://www.kiplinger.com

It’s no secret that the real estate market has been hammered. Nationwide, median home values dropped 18% in 2008, according to the most recent data from Fiserv Lending Solutions, a home-price research company. And in markets such as California’s Central Valley, where speculative building has yielded more homes than jobs, prices are down 30% to 38%.

In a few pockets of the country, though, home values have held their own, and some have even seen slight increases. The best place to own a home right now? Texas. Relatively conservative lending practices in the Lone Star State have buttressed homeowners from the worst of the subprime-mortgage mess. Additionally, Texas has a vibrant and diverse manufacturing sector, which has kept unemployment – and foreclosures – low.

The hardest-hit metro areas have been in the Central Valley and the Southwest, where speculative building and subprime loans a few years ago inflated the housing bubble. Now, the recession and job losses are pushing more homes into foreclosure. In turn, foreclosure bargains are luring new home buyers into the market and increasing number of sales but dragging median home values further down.

To see the ten metropolitan areas where median home values have increased the most, take a look at our slide show, Ten Cities With Rising Home Values. And to see where home values have dropped the most, check out our slide show, Ten Cities Where Home Prices Have Plummeted.

Researching the top ten cities where home values increased in 2008, we identified a few characteristics of successful real estate markets. Not every city on our list shares all of these characteristics, but a combination of them has spelled success for many metro areas.

A diverse set of industries. When a community relies too heavily on one sector, changes in that industry can be devastating to the local economy. A solid blend of midsize manufacturing and retail companies minimizes unemployment and keeps the local economy stable.

A college or university. In State College, Pennsylvania, for example, Penn State University is the local economy’s lifeblood, keeping housing prices on an even keel. But even in towns without major universities, smaller community colleges can provide secure jobs and attract home buyers.

A major hospital. Health care is one of the few industries still growing during the recession. Hospitals, especially regional ones, provide lots of jobs over large areas and help to stabilize housing values.

A strong community of retirees. While this doesn’t hold true for all cities that attract retirees (see Naples, Florida, in our list of the ten most depressed housing markets), it does in College Station, Texas and Kingsport, Tennessee, where retirees buy homes and give local economies a boost.

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#Tuition and Housing: As the next high school graduating class gets ready for #college

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As the next high school graduating class gets ready for college, tuition has never been a more important issue because of today’s tough economy. If you’re looking for ways to offset tuition for your kids, private scholarships are still available that don’t require perfect grades, a musical genius, or a great 3-point shot.

For example, www.FastWeb.com lists more than 1.5 million scholarships worth more than $3.4 billion, matching opportunities to your child’s unique profile. It’s important to note that you should never pay any application fees for scholarships.

Begin your search with your child’s guidance counselor. The financial-aid representative at the schools you’re applying to can also lead to you to other legitimate scholarship opportunities. And for a list of schools and universities in L.A. county with tips about student housing then click here.

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Divorceee pleads: Help me keep my home and free myself of the quitclaim deed.

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DEAR BENNY: I am a recently divorced woman. After many years of marriage in the same residence, I was decreed full ownership of the family home. However, I had to secure a substantial loan on the home to give to my ex-husband in order for him to move out. Because of my financial situation, I could not secure the loan without keeping him on the loan and on the deed. However, in the divorce settlement there is a quitclaim deed stating that I have five years to refinance the loan and get my ex-husband’s name off the loan and off the house deed.

I will not quality for a loan myself. However, I have a son, a recent college graduate, who has an excellent job and salary, and who is living downstairs and helping to pay the mortgage.

Should I go ahead and record the quitclaim deed? My name has been changed. Would the mortgage company be alerted and would they then require the loan to be paid in full? Would I then be forced to sell sooner than the five years? Also, I know my ex-husband’s name would still be on the loan. They may make me refinance with my name alone (I would not qualify), but maybe with my son’s credit I could qualify, making him part owner with his name on the deed. Could you please clarify the most prudent steps for me to take to keep my home and free myself of the quitclaim deed? –Amy

DEAR AMY: First, federal law does not permit the lender to call your loan just because you changed your name or add your son to title.

I suggest the following: Assuming that your son qualifies for a loan, have him buy half of the house. You then will both apply for a new loan, which if approved will pay off the existing loan, and your ex will be out of the picture.

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Veterans’ Educational Assistance Act (signed by Bush in ’08) is biggest education program since 1944

In August 2009, the Post- 9/11 Veterans’ Educational Assistance Act (signed by President Bush in 2008) kicks in for qualifying members of the military on active duty since September 11, 2001. The , this law is designed to provide veterans with a similar level of educational benefits provided to service members at the end of World War II.

Under the new law, qualifying veterans could receive payment up to the full cost of tuition and fees at the most expensive public school in the state in which you enroll. This basically guarantees a free education if you attend your state institution and qualify for the full amount. Under the new law, the current $1,200 program enrollment fee will also be waived.

According to the U.S. Department of Veterans Affairs, the maximum basic benefit is earned after serving an aggregate of 36 months of active duty service or after 30 days of continuous service for those individuals who were discharged for a service-connected disability. Individuals serving between 90 days and 36 months of aggregate active duty service will be eligible for a percentage of the maximum benefit.

Unlike previous bills, the new law extends equal benefits to activated members of the National Guard and the Reserves. The Veterans’ Administration has advised that clarification and possibly revision may occur until the law takes effect. To learn more about this important bill, visit http://www.gibill.va.gov.

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A Tough Climate for Teen #Employment

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A Tough Climate for Teen Employment

Summer jobs have always been a great opportunity for teens not only to make a little extra money, but to gain some valuable work experience, and to get a good feel of the responsibilities and expectations that await them in the years ahead.

Unfortunately, today’s teens are facing a tough economy that will directly affect their employment prospects this summer. At the time of the writing of this article, unemployment is at a 16-year high. In fact, more jobs were lost last year than any year since 1945.

This means competition for jobs, even part-time or seasonal employment, will be extremely fierce, and much more so than when you were their age. Reports suggest that there are now three applicants for every one employment opportunity available.

With this in mind, now might be a good time to prepare your kids for the challenges they will certainly face. And while a pep talk is helpful, start early and guide them through every step of the process. Remind them that, as diligent and determined as they might be, it’s just possible that, despite their best efforts, they may not be able to get a job at all.

The good news is that your kids have access to more employment resources than you had. Beyond the classifieds, school counselors, and your networks of family and friends who might be able to help in your search, the Internet offers a wealth of social media and networking resources, like Linked-in®, Facebook, and Twitter, that can help them expand their contacts and their search capabilities – plus many kids today have already mastered the use of these websites and know how they work.

Other great places to look online are websites like Teens4Hire.com and SnagAJob.com which are dedicated to matching teens to the right employers. Just remember, other savvy teens have access to these tools as well, so you don’t want to wait.

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How to Save Money Without Noticing #saving #money #college

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Are you sick of worrying about the budget and how you’re going to cut back and save even more? Well, don’t worry. Here are 3 easy ways to save some cash without even noticing:

Upromise and other programs like it allow you to accumulate savings for a college fund when you purchase items you already buy with registered store cards or credit cards. The best part – there are no sign-up or association fees.

You could save hundreds each year in bank fees simply by using your own bank’s ATMs. If you have a debit card, you can also get cash back at the grocery store and other places and you won’t get charged outlandish fees for accessing your own money.

Finally, one of the easiest ways to save money without cutting back is by keeping only the minimum balance in your checking account. Deposit everything you earn in to a high-yield savings account. Then transfer money for free online to cover any checks you write. This way you’re earning interest on the money you’ve earmarked to pay your bills.

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