“You Don’t Want to Pass the Burden of Investments Down to Your Daughter”: Suze Orman’s Advice to a 78-Year-Old With a Disabled Heir and $111K in Savings

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On the June 18, 2026 episode of her Women & Money podcast, titled "Is It Ok To Be Naughty With Your Money?", Suze Orman took a call from Elizabeth, a 78-year-old who retired in May 2025 and realized, watching a wealth management commercial, that she fit the punchline: every dollar she had was sitting in checking. Elizabeth told Orman, "I know I’m late to the party, but I think you’ve said it’s never too late to start, and I’m desperate for advice."

The stakes are unusually high here. Elizabeth collects about $9,000 a month from Social Security and a pension, holds $111,000 in savings, carries no major debt, and owns two properties (one with a mortgage). Her older daughter died last December, leaving a $40,000 life insurance payout. Her surviving daughter has a disability, receives SSD, works part-time, and lives in a subsidized apartment. Whatever Elizabeth builds now, her disabled daughter will eventually have to manage, or lose.

Orman’s verdict, and why it’s right

Orman’s core warning: "You don’t want to pass the burden of investments down to your daughter, who may or may not be able to handle them." Her prescription was deliberately boring. Treasuries, CDs, and money market accounts that earn interest without volatility. The advice is sound, and the math supports keeping it simple rather than chasing returns.

Start with what’s available without taking equity risk. A 1-year Treasury yields about 4%, and 2- to 5-year Treasuries pay roughly 4.2%. The FDIC national average 12-month CD pays 1.65%, but top online banks routinely pay three to five times that. On Elizabeth’s $111,000, a ladder of 1- and 2-year Treasuries at roughly 4% generates around $4,400 a year in interest, federally taxable but exempt from state and local tax. That income stacks on top of her $9,000 monthly cash flow without putting principal at risk.

Compare that to an equity-heavy portfolio. A 30% drawdown on $111,000 wipes out roughly $33,000 in paper value. Elizabeth, at 78, doesn’t have the runway to wait it out, and her daughter, inheriting a brokerage account she can’t actively manage, could be forced to sell at the wrong time. Boring instruments avoid that trap entirely.

The real foundation is the real estate

Orman pushed Elizabeth to recognize what she already owns. "It is 2026. Don’t tell me that it’s not worth probably a whole lot of money." Two properties in 2026 are likely the bulk of Elizabeth’s net worth, dwarfing the $111,000 in checking.

The tax mechanic that makes this matter is the step-up in basis. When Elizabeth dies, her daughter inherits the real estate at its fair market value on the date of death, not what Elizabeth paid decades ago. If a property was bought for $80,000 and is worth $500,000 at death, the embedded $420,000 gain disappears for income tax purposes. The 2026 federal estate tax exclusion is $15,000,000 per decedent, so estate tax is irrelevant for almost every household at this scale. The daughter can either keep the home or sell it shortly after inheriting with little to no capital gains tax owed.

The variable that changes the plan: SSDI vs. SSI

One factor determines whether Elizabeth can leave assets to her daughter outright or needs a special arrangement: which disability program her daughter is on. SSDI (Social Security Disability Insurance) has no asset limit, so an inheritance does not jeopardize benefits. SSI (Supplemental Security Income) and most subsidized housing programs cap countable assets at $2,000 for an individual. An inherited $111,000 plus a house could end the daughter’s eligibility overnight.

This is why Orman steered Elizabeth toward a living revocable trust and getting her documents in order. If the daughter is on SSI or has subsidized housing tied to asset tests, the trust should be a special needs trust drafted by an estate attorney. Assets held in a properly drafted special needs trust do not count against benefit eligibility.

What Elizabeth, and readers like her, should do this month

1. Move the $111,000 out of checking. Split it between a high-yield savings or money market account and a short Treasury ladder using TreasuryDirect or a brokerage.
2. Confirm whether the surviving daughter receives SSDI or SSI, and whether her housing subsidy has an asset test. The answer dictates whether a standard revocable trust or a special needs trust is appropriate.
3. Get current appraisals on both properties so the eventual step-up basis is documented.
4. Hire an estate attorney to draft the trust, a pour-over will, a durable power of attorney, and a healthcare directive. The 2.8% 2026 Social Security COLA helps with cash flow, but it does not solve the inheritance question.

Orman’s point lands because it respects the heir’s reality. The best portfolio is the one your beneficiary can actually manage the day after you’re gone.

The post “You Don’t Want to Pass the Burden of Investments Down to Your Daughter”: Suze Orman’s Advice to a 78-Year-Old With a Disabled Heir and $111K in Savings appeared first on 24/7 Wall St..