Smart Money: Internet, off-campus colleges can offer worthwhile degrees

Dear Bruce: With my current job situation it is difficult for me to attend college. I would like to get some kind of degree, but I am distrustful of diploma mills. I have heard a good deal about remote campuses, which would work for me. Are these as good as regular universities? R.P., Pa.

Dear R.P.: There is no reason not to pursue a college education in today's world. There are many colleges that are completely accredited and offer off-campus college educations. In addition, there are worthwhile colleges and universities that offer off-campus instruction on the Internet, allowing for a certain amount of interchange between student and instructor. The thing that you will need to look into is who operates the schools. Many colleges are operated by a state agency and are accredited.

Dear Bruce: My son has worked for companies for several years paying Social Security. He started his own business and doesn't pay Social Security. He has no retirement plan. Is this legal? He thinks he will be OK and that they will be able to live on just his wife's Social Security. Is this wise thinking? L.C., via e-mail

Dear L.C.: First of all, if your son is making any income at all, then he is evading taxes. He is required by law to pay both the employer and the employee share into Social Security and Medicare. Is this legal? No, it is not. This is short-term thinking. Your son ought to think long and hard about what he is up to. When the IRS catches up with people who willfully do what he is doing, there is a very strong possibility that they may make an example of him, and that means doing some hard time. At the very least he will be fined heavily, as he should be. If I were you, I would give him a heads up and let him know how foolish he is and how illegal his behavior is.

Dear Bruce: My son's wife bought a home before they married, so only her name is on the title. They are now living in it. My son helps with the monthly payments. If his wife dies, does he inherit it, or will someone else get it? They have children. R.K., Moor Park, Calif.

Dear R.K.: Your son should seek the services of an attorney. Given that California is a community property state, he may have interests that would not apply in other states. In most states, a spouse is entitled to at least one-third of the estate of the deceased spouse, assuming there are no prenuptial or similar agreements. It would be simple to have your son's name included on the property so that on her demise, it would be his instantly. If he were to pass away first, the home would be hers.

Dear Bruce: My wife and I are 63, retired, and we have $300,000 in an IRA, which we will start drawing down next year. We have a home worth $125,000 with no mortgage. Both of our parents and grandparents died without needing nursing homes. Should we buy long-term care insurance? It's about $4,000 per year. Jerry, New York

Dear Jerry: You haven't given me enough information to work with. You did not mention your Social Security or other investment or pension income. Generally, if individuals have annual incomes of around $45,000 each, nursing home/long-term care insurance is not a requisite. If the income is much less than that, should this care be necessary, your assets could be depleted in a heartbeat. You will be required to spend those assets down to just about nothing before you will be eligible for government help. If it is less than that, you should think about buying a proportionate policy to bring you to that level without exhausting your assets. In other words, your annual income plus the long-term care should equal $45,000 per partner.

Dear Bruce: My sister had a life insurance policy with no designated beneficiary with her employer. The proceeds went to her estate. In her will, she said I should be the beneficiary of the policy. Can I receive these funds from the insurance company, or, because there was no one listed on the policy, do the funds have to go through the estate? T.F., Sacramento, Calif.

Dear T.F.: The general answer to your question is that the funds will channel through the estate. If there is an appreciable amount of money involved, it certainly wouldn't hurt to seek the advice of an attorney practicing in your state. Ordinarily, if a beneficiary is designated in a life insurance policy, the proceeds move outside the estate. In the event the estate is designated or, alternatively, no beneficiary is designated, then it must follow the ordinary rules of probate.

(Bruce Williams is a national radio talk show host and syndicated columnist. He can be contacted through the Business Journal by writing to PO Box 1365, Springfield 65801 or via e-mail at sbj@sbj.net.)