Q. My wife and I (both in our 70s) have a revocable trust as well as living trusts, all established

Q. My wife and I (both in our 70s) have a revocable trust as well as living trusts, all established in 2000 with an attorney. Our friends say we should have an irrevocable trust so no one (nursing homes, lawsuits, etc.) can get into our estate. Our attorneys (in New York and Florida) say don’t worry. They will transfer necessary funds when needed. What do you think?

A. I have no quarrel with the revocable trust established under the advice of an attorney. What your friends are telling you, that you should have an irrevocable trust, may be good advice, but you have two attorneys involved who suggest that you have nothing to worry about and who say they will take care of your affairs. I am not about to go against the advice of who I hope are well-established and knowledgeable attorneys. After all, that’s what you pay them for.

Q. I’m 45 years old with an annual salary of $20,000, and I work as a CNA. I have debt amounting to $12,000. I have no form of savings. I would like to start putting away something for my retirement. Can you please suggest how to invest a little into the stock market or some other form of investing?

A. When you say you’re earning a salary of $20,000 at 45 years old, this is where I think you should put your effort. You have a debt of half a year’s salary. On $20,000, I cannot see any possibility of establishing meaningful savings.

That having been said, you need to look at what you’re doing for work and why you can’t earn a far more substantial salary. If that means going back to school, so be it, but making $20,000 a year, you will not be able to establish any retirement plan.

I know this sounds like tough advice, but you’re going to have to save a lot more than you are able to now, and that is only going to be done one way: by increasing your income.

Q. My mother passed away a few weeks ago. She has a car loan with a credit union in the amount of $20,000 on a 2010 vehicle. I can’t afford to continue making the car payments, even though I can really use the vehicle. What do I need to do in order to give the car back to the bank?

A. First of all, you say you own a 2010 vehicle with a $20,000 note. It sounds to me that the bank has a problem because there is no way in the world a 7-year-old car would be worth $20,000 or even close to it!

I would go down to the bank and say something like this: “We have a problem, which we may be able to solve. I am the executor of my mother’s estate, and I have to settle her affairs. Since her estate was almost cash-free, there is no chance of you getting paid.

“Given that, let’s come down to what the vehicle may be worth. If you’re willing to finance that amount for me, I will benefit from getting a car and you’ll benefit by getting rid of a potentially bad loan.”

If the bank is not amenable to that negotiation, just have your attorney write it a letter saying there is no money to pay for this loan and you are relinquishing the vehicle. I think you’ll find that most banks will recognize they’re in a bad situation they can’t correct and will end up negotiating with you.

Send questions to bruce@brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.

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