Pension Release: Sell My Small Pension

by Pension Release by Pension Forecast

Helen asks…

My husband had to retire due to a disability and has lost 2/3 of his income. Now he has charge off’s?

I need to know if there is only a disability income and small pension can the creditors take his income from him. Or when we go to sell our home, which has no equity, maybe years from now there will be equity, can they take what little equity there will be. I am on a small pension as well.

Pension Release by Pension Forecast answers:

Creditors do not have sympathy for losing your income, only in collecting the debt by any means possible. A creditor can definitely garnish a private pension but not social security. They can garnish any assets or income by a court judgment against you. When you sell your home if there is an existing lien from a creditor, that comes off your profits first. Perhaps you can settle the debt for about half what you owe. Talk to the creditors. Remember that even if one collection agency gives up on getting the money and writes it off, they can sell your debt to another debt servicer and the collection process will begin again.

Ruth asks…

SOUTH CAROLINA TAXES?

Currently my sister lives in NY state and is collecting a small pension from NY state. She is considering moving to So. Carolina to avoid the HIGH property taxes in NY. However, her pension will be taxed.
Does anyone KNOW about the taxes in South Carolina? Sometimes there are hidden taxes. Is this a smart move for her?
Her current property taxes are $9,000 in NY, and comparable real estate seem to have approximatley $1,000 or less (!) in taxes there. Is this possible?
Any information appreciated. I’d hate to see her make a mistake, or find something out later….too late. She’s thinking of renting her home in NY to find a rental in South CArolina, rather than staying put. This is because she’s been unable to sell her home in NY.

Pension Release by Pension Forecast answers:

I have a few comments to make on this question. I’ve never lived in SC, but know a good bit about NC which might be similar. Taxes are considerably lower there than in New York and in most cases, home prices are too. I know someone that moved from the Mid-Hudson Valley to a Raleigh suburb and bought a McMansion for basically the same amount he got for his average house in New York. This was awhile back but I think the same situation is still true. Property taxes were a lot lower too. And if you moved to a comparable house, the house value would probably be much lower so the taxes would be even less.

I don’t think the rental approach is going to help though. Everywhere I know of the property tax is paid by the OWNER of the property, so if your sister still owns the house in NY, she’d still be paying the property tax there and if she rents in SC, she wouldn’t be paying property tax there – the owner of the property would.

Income taxes would probably be lower and sales taxes might be too, but she won’t save anything on property tax unless she sells the house in NY.

Robert asks…

Cancer and No insurance?

My father is a small business owner who struggled financially enough in the last 2 years that he had to cancel his insurance. Now, over a year after he canceled his insurance he has been diagnosed with cancer. It is for sure in his jaw, and the doctor’s worry that it may have metastasized to other bones.

He needs surgery to remove the cancer from his jaw and harvest and graft bone from his hip and/or forearm.

Does anyone know of any programs that may be of assistance? His business took a $30,000 loss last year but he gets a small pension from his days as a fireman. His wife makes about $25,000/yr working in social services. He is 55 years old. Another obstacle is “net worth”. He has assets through the business, but they are not liquid. In fact, they have been trying to sell the assets for over 3 years.

I am extremely grateful for any advice you have. I do ask that you avoid turning this into a political discussion and please don’t say hurtful and insulting things about the fact that he didn’t have insurance. It was not an easy thing for him to decide between a roof over his head and health insurance. Thank you again.

Pension Release by Pension Forecast answers:

Like the person above states, the American Cancer society will be able to help and give you many places that could help assist your father. Also a website that is helping me financially is www.cancercare.org they have a book they send you free full of tons of different places that would be able to help to if you dont qualify with them.

Richard asks…

Can I receive housing benefit in this situation?

I’m 19. Lived with my mum and my dad. My mum passed away last year and left just me and my dad.

My dad was left disabled in the crash that killed my mum. I had to quit my job and become a carer for him. I receive carer’s allowance, he receives DLA and a small pension (£400 a month).

We have a mortgage on the house we’re living in, but we’re really struggling. The arrears have built up and the mortgage company are threatening reposession.

Our only option is to sell the house.

If we sold the house, my dad would have around £20,000 left after paying off the mortgage.

My question is, would it be possible for ME to rent a house and receive housing benefit, whilst my father lived with me as a non-dependent.

Sorry if my writing is muddled. It’s been a stressful time for us recently. I’d greatly appreciate any help.

Pension Release by Pension Forecast answers:

If you’re under 25 housing benefit will only pay for a room for you so your father would not be able to live with you. Your father would not get benefits as he’d have 20.000 left and this would be taken into account. The best thing for you to do would be phone them and ask them all your questions, they are there to help and the benefit system is a complicated one.

Donald asks…

capital gaines on land?

i posted my question on the wrong site , so again hopefully the right one this time
we had an offer on property in pennsylvania which we sub dived from our house we sold 8 years ago
we are retired (social security and small pension ) is this still considered as part of our former residence, if not what is the % on capital gaines expected to be paid

Pension Release by Pension Forecast answers:

You sold your home 8 years ago but before that you cut out a lot that you retained, is this right?

If you didn’t include the cost of the lot in your basis for the residence when you sold it (which you should not have done), the cost of the lot alone (i.e., its percentage of what the entire property cost you initially) is your basis for the lot now. If you sell it in 2010, the capital gains rate (longterm) is 15%. It doesn’t matter what other income you have. Your transaction on the residence itself was completed 8 years ago, and nothing you do this year affects it or is affected by it if that was reported correctly 8 years ago.

If you DID include the cost of the lot in your basis when you sold your residence, then your basis in the lot is $0, and your sale proceeds (net of sale expenses and any improvements) are 100% taxed at the 15% capital gains rate.

I hope this helps. If it’s still not clear, make your question clearer and post it on the Tax web site (sorry!) where more tax preparers will see it.

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