11.21.2024
Keeping Tabs
11.10.2024
Purging 101: What Do I Do With This? And is it Worth it? (Part Two)
This is a continuation of yesterday's post about getting rid of all of my stuff! As many of you know, at the beginning of 2024, I decluttered my house and got rid of everything except for a few mementos, photos and some camping gear. I decided to do all the work myself and now am looking back to analyze whether or not it was worth it. After much research I ended up doing the following with the items listed below.
Kitchen stuff. I sold some of the larger items on FBMP, but mostly I donated it to a local rummage sale, or gave it to Salvation Army. I did have some success posting some things in groups, like all baking items. Also bigger ticket items like my Ninja or Magic Bullet seemed to do better or sell faster in the long run.
$10 each or you can have the whole set for $40!! |
Books. Unfortunately my local library is very picky about what they take and all of the Little Free Libraries were full, so most of my books went to Salvation Army. I also sold a few on eBay but they were not really hot ticket items.
Random. It is interesting what people will buy. I sold unused printer cartridges and photo paper. I sold random assortments of photo frames and crafting supplies. I sold an antique radio to a woman who was going to use it in a play. I sold plants! Also, when I put out the free stuff, people took storage containers, even the ones without lids (I had set them out in groups), a roll of fabric, and a roll of Reflectex. I also gave a ton of stuff to friends and family, which really was my favorite way to get rid of things. I am sure they groaned every time they got a text from me saying, "Hey, do you want XXX?" but I felt a lot better knowing that some of the things went to a good home.
Here are a few other places you can take things (for free):
*these ones were especially difficult since none of them can be thrown in the trash.
Household cleaners, paint, batteries, light bulbs, propane containers, aerosol cans, e-waste etc.: If the paint is unused and unopened (which seems silly), you can take it to Habitat For Humanity (Restore). You may also be able to return it to the place you bought it. If it has been opened, it has to go to the Hazardous Waste drop off with the other items in the illustration below. *for my local county. Please check your local location for confirmation of what they will or will not take. The cool thing about this is that you put the items in your trunk and you pull up, they take everything out, and you drive off. You never have to get out of the car!
Take these* to Hazardous Waste drop off. |
Used motor oil: In my area, you actually can leave this on the curb for your regular pick up. Also many retailers who sell oil (like Walmart) or do oil changes (like Jiffy Lube) will take your used oil. Luckily I had graduated to paying someone to do this for me, so I did not have to worry about this. However, as a kid, my Dad used to make me change my oil, so I am familiar with the process!
Used printer cartridges: Staples or Office Depot will usually take these.
Used batteries: In my area, you could put them in a Ziploc and tape that to your recycling bin and Waste Management will take it on trash day. Otherwise you may be able to take them to Office Depot, or to the hazardous waste drop off.
Electronics - Goodwill, if the item is still working (they are sometimes picky about this), and they may refurbish it and sell it, but check your local one, as some do not take them, or local e-waste pickup company, or if it is dead, you can take it to the same place that you take hazardous waste.
Now the summary that you have been waiting for. What was my time really worth? Ha. In the end, I estimate that I "made" about $45/hour for eBay, $25/hour for ThredUp and $47/hour for FBMP (*these are very ballpark numbers). However, if you add in the hundreds (or thousands?) of items I gave away, and the time it took to research that and sort them and pile them up and move them from place to place, it would significantly lower my per hour rate (remember the saga of the suitcase? Well I ended up putting in my driveway for free, and I probably spent a few hours going back and forth with people on that) and am guessing it would be closer to the $15/hour range, or maybe even less!
Moral of the story? Some of the big ticket items may be worth selling, but the little guys may not be worth your time. Also FBMP takes more effort, but doesn't pay a whole lot more for the extra time. ThredUp was very little work and was things I would have given away for free anyway, so I feel like that was probably the least amount of brain power (which is a win for sure!) even though it consisted of the most items and paid nearly half as much. Also as an aside, if you are just sitting at home and have the time anyway, it's not a bad side gig! However, I think unless you want to have to be face to face with people and deal with a lot of flakes, I would pick eBay over FBMP for the ease of it.
Also, as a last side note, if you are ever buying on eBay or FBMP (or Poshmark etc.), even if it is a Buy Now item, it never hurts to offer a lower price! Unless you absolutely NEED it now. However, as a seller, I would happily take an offer, as I was motivated to sell!
Have you ever sold on eBay, FBMP or any other online retailer and if so, how did it go? What do you think your time is worth for these kinds of things (aka, would you pay someone just to not have the hassle)??
This post is part of NaBloPoMo. You can find the rest of my posts for this challenge here. You can find the list of participants and their information here. P.S. This is a draft I started in June 2023! Speaking of purging!
11.09.2024
Purging 101: What Do I Do With This? And is it Worth it? (Part One)
As many of you know, at the beginning of 2024, I decluttered my house and got rid of everything except for a few mementos, photos and some camping gear. While doing this, two things took me a lot of time. First, it took a long time to figure out where everything should go. I know, I could have just called a company to come and take everything and get rid of it for me, but that is not my way. I wanted to try to get some money for some of my items, and I did not want to PAY money to have someone else do what I could easily (HA. HAHA. HA!) do myself.
Things to keep |
If you don't mind paying to have this done, you can call a junk removal company. My friend in the Bay Area used this local one, who actually promises to recycle, sell or donate at least 80% of the items, which I find important. In fact, that is one of the reasons that I was so particular about finding where to take things; I did not want it to all just go in a landfill! However, in the end, it took me much longer than I had hoped.
The second thing that took me forever was selling things. I had this entrepreneurial dream that I would sell all of my crap and make millions of dollars. This is why I am not an entrepreneur. The time it took to take photos, figure out prices, list and monitor (and sometimes haggle) probably netted me about $2.00 per hour. I will give a short summary about this at the end of this post.
First let's talk about furniture. This is probably where I thought I could do the least amount of work to get the most amount of money. These things are large, I did not have too many of them and the price point is a lot higher than a pair of jeans or shoes. I had some good pieces, not in bad condition, no pet wear or chips or stains or cracks. I started by putting them on Facebook Marketplace. Ideally, I wanted to try to get a little bit back for this, but the work that is involved can be massive. Luckily, I was working from home two days a week at this point, as you really do have to have a certain amount of availability. However, I did leave quite a few items on my porch for people to pick up and I figured if they stiffed me, I didn't really care that much. P.S. None of them stiffed me. I ended up selling about 25% of my furniture.
But what to do with the other 75%??? The places in my local area where you can donate furniture are VERY PICKY! Also, I would prefer to have someone pick it up, so I don't have to load it twice into a car. However, that was easier said than done.
First, I scheduled a pick up with Restore (Habitat for Humanity). However, they basically rejected 75% of my things, even though when I filled out the form for the appointment, it said that they would take the items that I had. They will take new building supplies and like new household items, but "like new" means basically new. Also, I didn't have any of these, but if I did, I would have returned them to Home Depot for cash. They don't take anything that has patterns, has been painted, or has ANY tiny cracks or dirt spots (my couch had one tiny water stain on one arm). However, they did take my push mower (no motor, like the old fashioned kind) and my corded power tools (as long as they worked and were in a case etc.). They also would not take a kitchen table unless it had six matching chairs.
I ended up trying to get another company to pick up the rest but the wait times were horrible (pro tip: plan early, even if that means eating in camp chairs in the living room) and in the end I had to get Broski and his truck involved. We started by going to Salvation Army, but lo and behold, even though the website said that they took furniture, they would not take it, and so we ended up going to Out of The Closet, who is also picky, but not as picky as Habitat luckily! In the end, they took the rest of the large things, but Broski and I had to (a) make two trips (b) load and unload everything ourselves.
Broski helping me give away furniture |
Here is what I would do differently. I would start by taking what I could get for the furniture. I often would haggle and then the buyer would back out. I don't know what I was trying to prove, but I should have prioritized getting rid of it over making money. In the end, I gave it away for nothing so the $50 I was offered would have been better! Second, after I sold what I could sell, I would have put the rest on the curb with a "free" sign! I ended up doing this for a few left over items at the end and they went fast!! Even people driving by would stop and pick through stuff, which was surprising to me. I also don't really love having all of my goods out on display for the whole world to see, but believe you me, by the end, I could not give two flying trucks who saw my stuff; I just wanted it gone! I would definitely tell past me to get over myself and just put it on the curb. Then I would have donated (or trashed) what did not get taken, and saved myself the work.
Free stuff! Going, going, gone! |
Bulky trash. Speaking of trash, our garbage carrier (WM) let's you do one free bulky pickup a year, and they will take things like tires, mattresses, some electronics and furniture. I would have done this earlier, although I wanted to have everything sorted so I didn't end up with a bunch of trash at the end, so the timing was tricky. However, I think going through the garage and making a big pile early would have been better. Or if I wanted to do it at the end, I should have scheduled it sooner. I wanted to wait until the last minute, but only then did I learn that they schedule these a few weeks in advance, so I could not get it when I wanted it. I ended up going to the WM facility with a load in my car, which actually was not too bad. However, you do have to have a local address in order to do the disposal for free (you can dump for a fee otherwise), and I also had to schedule this (but could do that a couple of days in advance).
Taking a load to the dump in my huge car. |
Clothing and Shoes. Like the furniture, I did not want to just give it away, especially since I had some pretty high end pieces (I used to work in the fancy shoe department at Nordstrom, and some of my shoes were >$600 retail. I got them on sale though! I swear!). Why is it that if you spent a lot on it, you are more loathe to give it away? Or is that just me? Anyway, I put a bunch of them on eBay and FBMP, and same story as above, sold maybe 25% of them. We do not have a good consignment shop in my area (they want current styles, certain brands etc.) However, the good thing is that you can send a box to ThredUp, and they will try to sell your items and if they sell you will get a (measly) commission. I sent about six boxes to them in the end, and then gave the rest of the things to Salvation Army.
Typical week's worth of donations |
What I would have done differently. I was afraid to list things in multiple locations, but I should have tried to do that. I found that some things sold really well on FBMP and others were better to list on eBay so you can get a broader audience. Also eBay was way easier, as you just box it up and put it in the mail rather than having a person come over, or flake on you, or having a huge back and forth before they decide to buy. However, they do take a larger cut from you, but maybe it is worth it!
Electronics. This one hurt a lot. I used to be big into photography, and still am, but I no longer use my DSLR or the four different lenses I had for it (and lights and flashes and diffusers etc.) But they all cost a lot and once again, I did not want to give them away for a pittance. So I tried FBMP and did not have a lot of luck, and finally got desperate and put them on Ebay and did not get a lot for them but I did end up selling everything camera related. I also disposed of many an old cell phone and laptop by taking them to the Hazardous Waste drop off.
Sigh...tear...😢 |
...to be continued!!! In the interest of time (this got to be too long!), stay tuned for tomorrow, when I will go over a few more examples of where to take things and will also do the big reveal...what was my time worth??
Have you ever done serious decluttering at your house? What tricks did you use to get rid of stuff? What's the weirdest thing you have ever sold?
This post is part of NaBloPoMo. You can find the rest of my posts for this challenge here. You can find the list of participants and their information here. P.S. This is a draft I started in June 2023! Speaking of purging!
1.29.2024
The Not So Successful Side Hustle: An Update
You may recall that I recently started an unsuccessful side hustle. I never claimed to be an entrepreneur and I definitely am not much of a salesperson, but last year I thought I would try my hand in selling some stuff online. The last time I posted, I was just trying eBay, but I asked for your opinions on FB Marketplace and you all said to do it, so I did.
I won't say that it started off easy. First of all, I was afraid. I don't really love people knowing my details and FB shows your name and could possibly involve your address. I am not a huge fan of people coming over to my house, unless it is specifically scheduled, and I do not really want people inside my house. However, I decided to do a Shonda Rhimes and call this "the year of yes" and just get comfortable with being uncomfortable.
The first thing I listed was a stationary bike. I immediately got three replies, all offering me the exact amount I had listed it for. Hurray!! Or should I say, hurray? My Spidey senses went up, I looked at the profiles of the buyers and all of them were created in 2023 and had no personal info. I blocked and reported all three. My first adversary, slayed! After that, weeks went by with no further inquiries.
I decided to try something a little more simple, cheaper and that did not need two people to lift it. I listed an end table, had an inquiry the next day, and had a pleasant conversation with the buyer over messenger. However, our times were not jiving, so face to face pick up was going to be difficult. I decided at that moment to offer to leave it on the porch and she could get it when she could and just leave me money. I figured if she wanted it that bad, she could just take it. However, she was super sweet, came and got it and left me money and then communicated (gasp!) that she had done so. I was converted!
After that I listed a bunch of other things and after about six months, I have mixed feelings. Firstly, there are a ton of flakey people. So many people ask if the item is available and even if I reply right away, they ghost me after that. I have had people ask questions about details that are in the description (and I always include dimensions, info about stains, chips, tears etc.). I want to tell them to read the bloody description and stop wasting my time, but I usually don't. I have had people fully commit, ask me to hold the item, set up a time and then ghost me. I have had people set up a time and then come an hour early! People are strange.
However, I have had some good ones and I thought I would give a seller's perspective on the perfect buyer.
(1) The perfect buyer does not use the auto inquiry "Hi, is this available?" (often used even when the items are plural, by the way).
(2) The perfect buyer has personality and says something like, "Hello [insert seller's name here], I was wondering if this was still available. If so, I would be able to come and get it today." ***side note, are there a lot of sellers who don't take down their listing even if they have sold the item? There must be, because I get A LOT of "is this still available" inquiries. It's still listed! Yes it is still available!***
(3) The perfect buyer sets up a time to get the item as soon as possible. An actual time, not "tomorrow" or "later today" or my favorite, "after 9 pm." (they clearly don't know me). The perfect buyer then messages their ETA when they leave, when they are 5 mins away and when they are outside. I love these people! LOVE THEM.
(4) The perfect buyer does not set up a time, come to my house and THEN ask if they can get the item for half off. The perfect buyer haggles in advance, settles on a price and then sets up a meeting time.
(5) The perfect buyer pays cash, in exact amounts, but I will not be mad if they want to use Venmo.
(6) The perfect buyer sends a photo of the item later, happy in its new home. 🧡
So clearly everyone is different, and I am sure the buyers out there have some horror stories about the sellers (and I want to hear them!) but it seems like sometimes common courtesy is just lacking. I actually went down a wormhole of this reddit thread and wow, there really are some way worse horror stories than I have had!
But wait, let me tell you about the saga of the suitcases. I have a set of suitcases; there are three of them, they are hard sided, they have four spinning wheels. They are nice suitcases. I only used the smallest of the three a couple of times, but I decided I was a backpack person and they sat in the garage for years. I listed them for about half of what I got them for, even though they are essentially unused. Since I listed these cases, I probably have had almost a thousand clicks on them. And for some reason, everyone who is interested in the suitcases has some issue or other.
The accursed luggage. |
The first guy seemed like a creeper as he did not ask any questions about the cases, but just asked for my address right away, so I ignored him after that.
This lady told me she wasn't a flake, which made me suspicious. Also that looks like a copy-paste. Hm.
So I am thinking that she sounds like one of the ladies I used to serve at Nordstrom; they would buy shoes but as they were buying them would complain about shoes and you knew, you JUST knew that they were going to wear them once and then return them (which goes against your commission if they do) after wearing them. Also, their party or whatever would be the next day and they would complain about how they just can't find anything perfect (and you would be thinking that it doesn't seem strange to you!) yet!
BUT I message her and tell her that the wheels work great but I am only available Tuesday evening, not Wednesday. She goes on to then ask me my address (why!) and I give her the general area, thinking that we have a sale. Then she asks for $25 less than the listed price, which by the way is about 25% less, and when I counter, she doesn't agree, but just asks if we can set up pickup for tomorrow, and I reiterate that I am not available Wednesday and then... she ghosts me. Mind you, this exchange took place over six hours. So she texted me at the last minute (for her vacation) and then draws out the conversation and then doesn't want to come and get it as soon as possible!? I don't get it.
On the other hand, if you ever DO want to get into a side hustle, for some reason around here, plants are the way to go. Remember I talked about emptying out my plant room? Well, I was going to just put them all out on the curb with a "free" sign, but I thought what the heck, I will give FB a shot. I listed about 15 indoor plants and over the next day, I sold about 9 of them and made almost $200! Listen, I listed them cheap, including the pots, but I was going to give them away for free, so I was super happy. Drinks are on me! Plus, if you recall, many of these were propagated by me, so aside from the pot and the time, they didn't really cost me much to begin with!
Plants for sale!! |
Do I know how to make a short story long, or what!?!? Thank you for listening, and thanks to those of you who commented on my original post and prodded me to just give it a shot.
Do you have buyer or seller horror stories? Are people in your area as flakey as the ones here? But most importantly, why are the suitcase people so weird!?!?!? I need hypotheses!
1.04.2024
Looking Back: Purging Progress Report Q4
Well folks, the year has ended and it's once again time to be accountable for what my plans were at the beginning of the year. As you know, I try to purge a little each month every year so that I don't get a glut of things that I have to eventually go through all at once. My three areas I wanted to work on for the last three months of they year were reading nook, health and plants.
Reading Nook -- Before |
Reading Nook -- After (don't mind the disassembled shelving) |
Too many plants! And this is just a fraction of them. |
One (of many) load(s) of donations! |
10.23.2023
My Last To Do List: In Case of Emergencies
As I mentioned in my 2022 recap post, one of the things I completed last year was what I call my last to do list. Actually it is more of a file with a bunch of documents and a to do list in it, so let's just call it the In Case Of Emergencies (ICOE) file. If you have not read my first post of this series about trust and estate planning, you can read it here.
This is basically a file that you can tell your emergency contact the location of so if something happens to you, they can go and get it and have a one stop shop of where things are and what they may need to handle for you. This is something that my grandmother had and after she passed away, it was so easy to arrange her affairs, since she had already done most of the work for us. After that, I decided to hone and combine a couple of the lists that I already keep for myself and update my file so that my loved ones would have a roadmap for me. Obviously this changes over time, so I have put it on my yearly purge and organize task list as something I revisit and update once a year.
Important Docs: I basically have a big thick plastic ziplock bag (like this one) that I keep all of my grab and go important documents in. This includes the lists I will reference below, but it also has things like my trust documents, birth certificate, passport, deed to my house, title for the car etc. I also keep a paper copy of each of my bills so that the account number and phone number to contact are handy. Obviously this could be found online but I like to take the "belt and suspenders" approach.
Vaccinations! (this can be uploaded online now too) |
Other Important Items: This is also not on a list, but I keep any old memory cards or external hard drives with photos etc. in the same bag. I know most things are in the cloud now, but I have a lot of older photos that I have not put in the cloud so those are kept on hard drives for the time being.
List of bills: This is a printout of an Excel spreadsheet of what bills I have, how they are paid, when they are due, and how much they normally are. Most of my bills are on autopay, so I have also noted whether it comes from my bank account (like the mortgage) or the credit card that I use for autopay. I only use one credit card for anything I have autopay on and use a different card for any online purchases and a third card for brick and mortar purchases. This way if the card that I carry around with me gets lost or stolen, I do not have to go back and update all of my online and/or autopay details. I also have this list saved in a Google drive folder that I share with my emergency contact so that it can be accessed online as well.
List of bank accounts, retirement accounts etc.: This is also an Excel spreadsheet; I do not put account numbers on this, but it is a list of where the account is, what type it is, and who is the beneficiary. This includes my loan for my mortgage.
List of properties: the deed or deeds should be in the file anyway, but it could also help to keep a list of the address(es) of any properties in the file too. I have also noted who my mortgage is with and approximately how much I have left on my loan (to be updated once per year).
List of email address and passwords: this is also up to you and can be stored electronically and shared instead. You can also get a password vault app that can be shared. However, my list is not long; it only includes sites that I think people would want to have access to, such as my Google account, which is where all of my photos and such are. Also this can be retrieved in some cases after your death, although I did read that the Apple iCloud data is not transferrable. To be safe, I would share your login with someone if the information is important!
Where is this file? Most importantly, tell someone where this file is and how to access it if it is in a safe or somewhere locked.
Just a side note, as I have mentioned in the past, this file is also the very same one that I would grab if there were a fire heading my way, and because of this, it also has cash in it. I also have a box of photos (hard copies) and a go bag with a change of clothes and some food as part of my emergency prep kit, but if the fire were coming fast, I would just grab the ICOE file and skedaddle. So it satisfies two different purposes.
Do you have a ICOE file or a Go Bag? Is there anything that I do not have on my list that you have on yours?
10.02.2023
Looking Back: Purging Progress Report Q3
And just like that, the third quarter of the year has come to a close! As you know, earlier this year I talked about doing some purging and it's already time for the accountability check in again! My three areas I wanted to work on for the months of July, August and September were bedroom/shoes, kitchen/dishes and living room/hall/spare room.
I feel like Old Mother Hubbard. |
Don't worry; I have two more coffee cups but they are in use. |
Don't judge - Bertha lives in my living room. |
8.28.2023
The Not So Successful Side Hustle
8.21.2023
Urgently Hiring: Personal Assistant
You know how we all have jobs that are not that hard but that we just hate doing? I have a few for sure! For some of the ones I have, it would be easy to hire someone but they are things that I CAN do myself but just procrastinate starting. My brother and I were discussing this and we decided to swap tasks; I would help him do the things he hates doing and he would help me do the things that keep getting put on next week's to do list. Here are a few that made the cut.
Broski was/is seeking someone to to the following:
Rollover his 401k to an IRA. DONE. This is one of those things a lot of people put off but in reality, it is not as hard as it seems. It does involve a bit of paperwork and can be anxiety inducing due to the fact that they have to liquidate one account and then you have to use those funds to buy something in the new account, but for most of us, we have enough time until retirement that we don't need to worry about timing the market. Just do it.
Clean out and organize his garage. DONE. Luckily, I love doing this kind of thing. However, I know it can be daunting, especially if you have any big items that you are not sure what to do with, or memories/mementos that you are on the fence about keeping (or that you need to look at as you sort). However, having a third party come in and be less emotional about your stuff can be freeing. The other hard thing is getting started! For Broski, he had one big item that he needed to get out of the way before the rest could be accessed, but that one thing was causing weeks of delay. I went up there and pulled that thing out, helped him reorganize, sort and label things and put the big item back. However, he just finally got rid of it so now we can commence with the second phase!!
I was/am seeking someone to do the following:
Fix the water pressure in my shower. NOT DONE. Broski took a look at this and it looks to be a bigger job than I want to do myself and I don't really care enough to hire someone to do it. It seems like the hot pressure is just lower in general than the cold, so there is probably some corrosion in the line or something and I don't really want to pay someone to do a huge job. I will just deal with the trickle.
Weed the yard. DONE. Broski came over this weekend and we got so much weeding done! He is a beast with a weedwacker and a fork looking tool that he uses to dig up the weeds by the roots. I worked alongside him, but it sure was nice to have someone enthusiastic by my side. Be gone ye weeds!
Install the bike rack on my car roof. NOT DONE. Broski got on this task and it was determined that before putting the rack on my car, I would have to buy other racks to put on my car. Hm. So I am mulling this over, but may just buy a different rack since some of the trunk mounted racks are the same price as the racks I need to buy for the top. Plus then I started thinking about it and will I really be able to lift my entire mountain bike above my head and put it on the roof? Anybody have any tips here? For context, my bike weighs about 32 pounds without anything on it and the rack does not require you to remove the front wheel.
Power wash my deck. DONE! Broski brought over the washer and not only did the back deck, but the side porch and front porch and all of my flagstone and paving stone. WHAT A DIFFERENCE! I forgot that the wood is red/tan instead of grey/black/dusty. It looks so good.
So, I guess the moral of the story is, having a friend really helps when the jobs are crappy and/or one man's trashy job is another man's pleasure!?
What job do you hate doing? What job do you love doing and would happily swap with someone to do? Have you ever pressure washed anything?
7.10.2023
Looking Back: Purging Progress Report Q2
And that is the second quarter of the year, over already! As you know, earlier this year I talked about doing some purging and since we are now another quarter into this year, it's time for another accountability check! My three areas I wanted to work on for the second three months of they year were pantry, garage/camping items and bedroom/clothing.
4.10.2023
My Last To Do List: Trusts & Other Documents
As I have mentioned before, I have a folder of all of my important docs and a list of all of my accounts and important details. I often call this list "the death list" because it is the list of things to do after I die, but this sounds kinds of morbid, so I will retitle it the last to do list. I hope that this list will not be needed for a long time, but I am happy to keep changing it if that means I live a lot longer. However, I also do feel that it is important to have your affairs in order, just in case. This post is about item one on the last to do list, setting up a trust.
Before I get started, if you do nothing else or do not feel like reading this long post, at least do these two things: (1) Set up beneficiaries on any retirement accounts or Transfer on Death (TOD) designation on your other accounts. This allows worry free and probate free transfers of your money to someone else and even if you do not have a will or any other paperwork, the money will get into the right hands. (2) Complete an Advance Directive (see below for more info) form which will detail what you want done in case you are incapacitated (i.e. DNR).
But now, let's talk about why any of us would need a trust. A trust will help you to avoid probate. Probate is what happens when you pass away and the court has to approve your will and name or approve your executor. The costs of probate differ by state but in California, costs are based on the gross value of the estate and are 4% on the first $100,000 and then there is a sliding scale after that. Let's just say your assets are worth $100,000. That would be a $4,000 cost!! Also, this process can take six or nine or even twelve months, which can be a pain for your loved ones.
The alternative is to set up a trust. I always thought that a trust was something rich people had for their spoiled kids. This is not the case! A trust is something that protects you, outlines your wishes and minimizes taxes (and avoids probate!). When you die, your successor trustee (the person you want to carry out your wishes) can start doing what you outline right away without getting the court involved. Depending on your situation, setting up a trust should not be too difficult or costly. I spoke to two different trust attorneys and the going rate is around $1,500 - $2,000 depending on your situation and the number of properties you have (in CA it costs $200 per property to change the name on the title). Of course, you could probably also just Google it and fill out something online that would work, but I wanted the peace of mind that comes with having a professional help me. Plus, my job offers legal benefits, which are similar to health benefits where you pay a little bit month. This costs me about $360 per year, so the attorney fees for setting up a trust only cost me $360.
Additionally, not only will the attorney help with the trust, but they will also complete an Advance Directive, a will and a Power of Attorney form for you. If you have not already set these up, even if you do not have a trust, you should at least have these three things.
Why do you need these? Let's talk about each one separately. The Advance Directive conveys your wishes regarding your health in case you become incapacitated and outlines who has the right to make health decisions on your behalf. You can easily get these documents from the internet. Nobody wants a case of Terri Schiavo on their hands. Here is an Advance Directive form that I used in the past. These do vary from state to state so you should use one for your particular state. The other things you should write down and keep with your AD are things like: do you want to be cremated or if you want to be buried, where do you want to be buried, do you have a plot already, etc.?
We all know what a will is, so I won't go into too much detail; however, you may think that it doesn't matter because everything will just go to your next of kin, which is true. But having a will makes things easier for the people you leave behind, specifically appoints an executor (otherwise the state may do this for you) and can detail who will take care of your children, what your wishes are for your funeral etc. Again, you may think that you won't care because you will be gone, but it will make things easier for whoever is left to take care of your affairs. You can also note anyone you do not want to have anything, like creepy uncle Phil for example. This article is very helpful, and also has a free online version of a will that you can use to get started.
The Power of Attorney tells people who can make financial decisions on your behalf if something happens to you. We all think we are invincible but what happens if you are in a car accident and can no longer make your own decisions? The other option is to add someone as a joint account holder on your accounts, which will give them the freedom to use the money to pay for your care, pay your bills etc. However, if you don't feel comfortable with that, you should appoint a POA.
Okay! Let's go back to the trust again. Setting it up does take a little work, i.e. you do have to know who you want to get your stuff, who you want to handle your affairs etc. But once you have decided that, the actual process of doing the paperwork is very easy. For example, I had to give the attorney all of the information about my bank accounts (not numbers, just where the accounts are held), any investment accounts, any properties with addresses and any specific bequests. For who I was going to bequest anything to, all they need is the person's name. No social, no address, no phone. For anyone I wanted to give POA designation to, it was the same. So it was really not as complicated as you may think.
Also, just like most legalese, there is always a phrase to cover you. For example, very common language goes like this: I gift my 13 inch TV to my brother and if deceased, this gift shall lapse. What does this mean? It means if he is no longer around, the gift goes back into my estate. You can set this up however you want and the "if deceased" can literally be a list of 40 people who you want to have in order of importance, or you can give everything to a charity like Warren Buffet.
Do you have any of the abovementioned items? What steps have you taken to arrange your affairs? Do you have any tips to add or questions about the above?
Disclaimer: The information above is solely an opinion based my own personal experience. You do you. I am not a tax and/or financial advisor; nothing in this post should be taken as investment advice. I have no fiduciary responsibility to anyone reading this post. Please consult a financial advisor for investment advice. For my other posts regarding money, go here.
4.03.2023
Looking Back: Purging Progress Report Q1
I love this card! (I did throw it away though) |
No more room! (Also, clearly I need to use more butter) |