P
ay Dirt

    Something Bad Happened In Our House. I’m Not Sure How Open to Be.

    Photo illustration by Slate. Photo by Bilanol/iStock/Getty Images Plus.

    Pay Dirt is Slate’s money advice column. Have a question? Send it to Kristin and Ilyce here. (It’s anonymous!)

    Dear Pay Dirt,

    My husband and I are selling our house and downsizing to a condo as we near retirement age. My late father lived with us for the last 10 years until his death six months ago. He passed away in his sleep in his bedroom. Should we disclose this to potential buyers? Some people might feel uneasy about living in a home where someone died.

    —No Ghosts Here

    Dear No Ghosts Here,

    I'm sorry for your loss. Losing a loved one, especially one who lived with you, is difficult.

    Seller disclosure requirements vary by state, but generally, you need to disclose anything that could affect the property's value. A natural death on the property isn't typically considered material, except in California, where sellers must disclose any death within the past three years. Violent deaths, like murders, are stigmatizing and require disclosure.

    Unless you live in California, you don't need to tell buyers about your father's passing. However, if they ask directly, be honest. If a buyer has empathy, they'll express condolences and move on.

    Dear Pay Dirt,

    My mother-in-law recently passed away, leaving us with more money than expected. We've been paycheck-to-paycheck most of our lives. I'm lost about which professionals to consult: a tax advisor, financial advisor, or planner? Do these roles differ?

    —Unexpected and Regretful Windfall

    Dear Unexpected and Regretful Windfall,

    I'm sorry for your loss. When someone dies unexpectedly, it's natural to feel regret.

    First, find an estate attorney who can guide you through the process. They'll recommend accountants they work with regularly. Interview a few until you find one you like, especially since you're out of state.

    Once you have access to everything, figure out what to do with the money. If your mother-in-law had a financial advisor, start there. Otherwise, interview fee-only financial advisors. Take your time and don't rush into investments or complicated instruments. Sit with the inheritance for a while, think about it as your future retirement kitty, and learn how to manage it safely.

    At the end of a year or two, you'll feel empowered by what you've learned and done, and be well-prepared for the legacy she's left in your hands.

    —Ilyce