Business
Elderly and cash-strapped, a couple consider a proposal to sell their home to neighbors
Dear Liz: I’m 80 years old and my wife is 76. Our only retirement income is Social Security, and we have less than $50,000 in savings. We have about $600,000 equity in our house, which we bought in 1971. We presently have property taxes deferred, at 6% interest. The house is in disrepair.
We have two neighbors who are willing to buy the house after one or both of us die. The neighbors are willing to postpone occupancy and contribute to mutually agreed-upon home repair costs, which will be deducted from the selling price. Details will all be in the contract. These payments will greatly improve our lives. What could go wrong?
Answer: Well, a lot, which is why you need an experienced real estate attorney to represent you if you go ahead.
It’s not clear from your letter if your neighbors are locking in a sale price now, which would mean you and your wife (or your estates) would give up future price appreciation. Are the payments simply contributions toward the repairs or are they purchase payments? Also, what happens if you need to tap your equity to pay for long-term care? If you or your neighbors want out of the deal, would that be possible? Those and many more details need to be thought through.
But your situation, and your proposed solution, are not that unusual, says Los Angeles estate planning attorney Burton Mitchell. Many older people with highly appreciated properties don’t want to sell their homes and trigger taxable gains in excess of the $250,000-per-owner home sale exclusion.
Another alternative to consider is a reverse mortgage, which could allow you to tap your equity while you remain in the home. You wouldn’t have to make payments on this loan, and the balance would not be due until you and your wife die, sell the home or move out.
That Social Security check is in the mail. Or will be someday.
Dear Liz: I was previously denied a portion of my husband’s Social Security because I received a government pension, and the offset rule made me ineligible. Now that the law is being changed, I’m wondering if I would be eligible to receive survivor benefits from Social Security, as my husband is now deceased.
Answer: The Social Security Fairness Act, which did away with the windfall elimination provision and the government pension offset, was signed into law Jan. 5. These two provisions affected people who earned pensions from government jobs that didn’t pay into Social Security.
Social Security says that no action is needed if you have previously filed for benefits that were partially or completely offset, but that you should make sure the agency has your current address and direct deposit information. You can do that by creating or updating a mySocialSecurity account at www.ssa.gov/myaccount. People receiving government pensions who haven’t applied for Social Security can do so at www.ssa.gov/apply.
Social Security is still working on implementing this major change, but you can look for updates at www.ssa.gov/benefits/retirement/social-security-fairness-act.html.
More on those lost home improvement receipts
Dear Liz: You recently answered a question from a home seller who had lost documentation about improvements. The improvements most likely required building permits, which would have indicated the scope of improvements and, possibly, the cost as well. The local building department will have copies of those permits on file, and they can be obtained at a modest cost.
Answer: Thank you. The original letter writer had lost their documents in a house fire, a circumstance now shared by far too many in the Los Angeles area, thanks to the recent wildfires.
To recap, the value of qualifying home improvements can reduce the taxable gain when a house is sold. But if audited, sellers probably would need some kind of proof the work was done.
Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting, suggested asking any contractors that were hired to provide verification of the projects and to check with the property tax assessor to see if the improvements were reflected in the home’s assessment. Photos of the home reflecting the improvements could also help in an audit, Luscombe says.
Liz Weston, Certified Financial Planner®, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.
Business
A Trump Oligarchy Is Moving to Washington, and Buying Up Prime Addresses
President Biden warned in his farewell address to the nation last week that an oligarchy is taking shape in America. In Washington, the oligarchs are already here, buying big houses.
Counting President-elect Donald J. Trump himself, there are at least a dozen billionaires among his cabinet picks and those headed for senior roles in the new administration. Elon Musk tops the list with a $429 billion net worth, according to Forbes, making him the world’s richest man. Mr. Trump weighs in with an estimated $6.8 billion.
It is an extraordinary concentration of wealth in a city where power has always been more important than money, but is now more than ever intertwined with it. Mr. Trump campaigned as a populist defender of the American working class, but he has put some of his richest donors in commanding roles in the top reaches of government. A number will oversee the very industries that produced their fortunes.
“It’s tempting to liken this to the Gilded Age, but John D. Rockefeller didn’t actually run McKinley’s campaign or move into the White House,” said Michael Waldman, who was President Bill Clinton’s chief speechwriter and is now president and chief executive of the Brennan Center for Justice, which promotes legal system reforms and works to curb money in politics. He was referring to Mr. Musk, who spent more than $250 million to help Mr. Trump win and is now expected to have an office in the White House complex.
One of the most immediate effects in Washington has been an explosion in the luxury real estate market.
The financier Howard Lutnick, Mr. Trump’s choice to be commerce secretary (worth $1.5 billion, according to Forbes), last month closed on the French Chateau-style home of the Fox anchor Bret Baier on Foxhall Road for $25 million, a record for the area. Scott Bessent, the nominee for Treasury secretary (his financial disclosure statement shows he is worth in excess of $700 million) has looked at a $7 million Federal-style house on N Street in Georgetown, once the home of the syndicated columnist Joseph Alsop.
The 1850 Italianate-style Georgetown home of the late Boyden Gray, an influential lawyer for Republican presidents, sold last month for $10.5 million. Real estate agents would not disclose the buyer, but they did say they were running short of trophy houses in Washington because of a second-term Trump bump.
“We’ve really been overwhelmed by the wealth factor that has come to Washington since the election,” said Jim Bell, an executive vice president of TTR Sotheby’s International Realty. He said agents have resorted to calling their Washington clients and asking if they’d be interested in selling to the newcomers.
The journalist and author Sally Quinn got one such call from an agent who told her she could get twice the price for the 18-room, 1790s Georgetown home she shared for more than 30 years with her husband, the late Benjamin C. Bradlee, the famed executive editor of The Washington Post. The house was once owned by Robert Todd Lincoln, Abraham Lincoln’s son.
Ms. Quinn said she was happy to get the call, but adamant: “I said, ‘Never.’ This is my home.”
It is unclear where Mr. Musk will live in Washington, although there are local media reports that he is trying to buy the Line Hotel in the buzzy, bar-heavy neighborhood of Adams Morgan and turn it into a private club. A spokeswoman for Mr. Musk, the Tesla founder whose rocket company, Space X, has billions of dollars in contracts with the federal government, did not respond to a request for comment.
Mr. Musk is expected to have an office in the Eisenhower Executive Building across from the White House as the co-leader of the unofficial Department of Government Efficiency. His partner in the effort is Vivek Ramaswamy, a pharmaceutical entrepreneur with a net worth of $1 billion, according to Forbes, who is also planning to run for governor of Ohio, a seat that becomes open in 2026.
Jonathan Taylor, a founder and managing partner of TTR Sotheby’s, said that the rich with connections to the administration, although not necessarily a part of it, are moving here too. “There are a lot of very wealthy people looking for a seat at the table,” he said.
That is hardly surprising, said David Rubenstein, the billionaire co-founder of the private equity Carlyle Group.
Big donors, he said, “would like to get the policies they believe in from the federal government — more oil drilling, easier antitrust policy, more favorable crypto policy, less bank oversight. They also want more support for helping American companies invest overseas, and have ready access to government officials.”
Washington housing, he said, was also a relative bargain for them. “If you want to buy a home in New York or Southampton, a really good house, it could cost $100 million to $150 million,” he said. “You can’t spend $25 million in Washington even if you try.”
Mr. Rubenstein, who served as deputy domestic policy adviser to President Jimmy Carter, said he looked at Mr. Baier’s house when it was on the market but decided to stay in the home in Bethesda, Md., where he has lived for decades. He also owns the sprawling compound in Nantucket that President Biden has used for his family Thanksgiving vacations.
Democrats have money too, although Mr. Biden’s Cabinet is largely filled with single- and double-digit millionaires. His current White House chief of staff, Jeffrey Zeints, listed assets ranging from $68 million to $338 million on his 2024 financial disclosure form. One outlier is Penny Pritzker, an heir to the Hyatt hotel fortune who was a commerce secretary for President Barack Obama and served as Mr. Biden’s special representative for Ukraine’s economic recovery. She has a current net worth of $4.1 billion, according to Forbes.
Mr. Trump’s billionaires have substantially bigger assets than those top officials who came to Washington for his first term, which was considered the wealthiest administration in American history at the time. Mr. Trump’s first secretary of state, Rex W. Tillerson, the former chief executive of ExxonMobil, had assets of between $289 million and $350 million in 2017. He lasted a little more than a year before Mr. Trump fired him by tweet.
Some tech billionaires, who moved here in part to have access to the White House and Congress as their industry came under growing government scrutiny, have been in Washington for years.
Jeff Bezos, the Amazon founder and owner of The Washington Post, paid $23 million in 2016 for the former 27,000-foot Textile Museum on a grand street in the Kalorama neighborhood. The Silicon Valley venture capitalist Peter Thiel, who donated more than $1 million to Mr. Trump in 2016, paid $13 million in 2021 for a home on Woodland Drive owned by Wilbur Ross, the secretary of commerce in Mr. Trump’s first term. Eric Schmidt, the former chief executive of Google, paid $15 million for the home across from Ms. Quinn on N Street, where Jacqueline Kennedy lived for a short time after her husband’s assassination in 1963.
“These are really rich people,” said Kara Swisher, a journalist who chronicles the tech industry and is a former opinion writer for The New York Times. “As much as they like to have an image of not being spendy, they’re all really spendy. They all have private planes, they all have assistants, they have people who get them the kind of nuts they want.”
Washington neighborhoods in high demand, real estate agents said, were Kalorama, Massachusetts Avenue Heights off the embassy-lined street of the same name, and Georgetown, whose cobblestone lanes were traditionally the preserve of Washington’s old-line elite. Not anymore, said Jamie Peva, a real estate agent with Washington Fine Properties who has sold houses in Georgetown for 33 years.
“That whole WASP hegemony that started to decline in the ’80s just continued to decline,” he said. “All of a sudden tech starts to come in. It’s a meritocracy.”
A few of the billionaires will presumably not need homes in Washington. Charles Kushner, a real estate executive whose companies are worth $2.9 billion, according to Forbes, is to live in Paris as the U.S. ambassador to France. Mr. Trump pardoned Mr. Kushner, a major donor to Mr. Trump’s 2024 campaign, in the last days of his first term. In 2004, Mr. Kushner pleaded guilty to tax evasion, retaliating against a federal witness and lying to the Federal Election Commission.
Warren Stephens, an investment banker worth $3.3 billion, according to Forbes, is to live in London as the U.S. ambassador to Britain. In 2016, Mr. Stephens gave $2 million to a group aiming to stop Mr. Trump from winning the Republican presidential nomination and in the 2024 primaries backed Republican candidates other than Mr. Trump. In April, after it became clear that Mr. Trump would be the Republican nominee, Mr. Stephens donated more than $3 million to his campaign.
Tilman Fertitta, the owner of the Houston Rockets and a longtime Republican donor who is worth $10.2 billion, according to Forbes, is set to live in Rome as the U.S. ambassador to Italy.
Eric Lipton contributed reporting.
Business
What if No One Misses TikTok?
But I’ve never once added a friend on TikTok, sent a direct message or thought of myself as a “TikToker.” And I don’t think I’m alone. For most people I know, TikTok isn’t a place to connect with other people. It’s a place to waste time, to numb out, to unplug from reality and float in the feed. That passive, dissociative quality, while great for engagement, has also made TikTok feel more replaceable than other, more social networks. If it goes away, we’ll just get our fix somewhere else.
I’m also persuaded by the explanation given in The Atlantic by Hana Kiros, who says TikTok is a victim of its own success. TikTok’s popularity, she argues, has led lots of other social networks to copy its features. Now, users who want to drop into an infinite wormhole of short, entertaining vertical videos can go to Instagram, YouTube, Snapchat or X, all of which have introduced TikTok-style feeds in recent years. And in a world where every app works like TikTok, maybe TikTok itself feels less necessary.
I’ll add one more optimistic possibility: Maybe we’re ready for a change.
What spending time on TikTok represents — to me, at least — is a kind of cognitive surrender, a willingness to stop actively directing my thoughts and feelings and to let ByteDance’s algorithm entertain me for a while. It can be a pleasant experience, and occasionally euphoric. (Every few days, my wife catches me laughing at my phone and asks, “What’s so funny?” The answer, always, is TikTok.)
But over the years, as I’ve spent more time on TikTok, I’ve also noticed how it’s starting to rewire my brain — blurring my focus, shortening my attention span, making me less interested in media that isn’t laser-targeted to my precise array of dopamine receptors. Others have reported that TikTok has become a harmful addiction for them — an app they desperately want the government to ban because they can’t quit it on their own.
It’s probably wishful thinking to believe that if the ban takes effect, millions of screen-addicted TikTok users will start reading “Ulysses” and taking long walks in their spare time. But maybe it’s reasonable to see the shrugs surrounding TikTok’s disappearance and wonder if, after years of giving that app our attention, we’re ready to invest it somewhere else.
Business
A treasure house of composer Arnold Schoenberg's music destroyed in Palisades fire
On the morning of Jan. 7, Larry Schoenberg was about to prepare the tax filings for Belmont Music Publishers, the august house dedicated to preserving and promoting the works of his late father, Arnold Schoenberg, one of the most influential musicians of the 20th century, when his daughter Camille called and told him to look outside.
“Oh my God,” he said. Thick plumes of smoke were whipping up all around his Pacific Palisades home. Without thinking he jumped into his car, his wife in the other, and they drove to their daughter’s house elsewhere in the Palisades.
The plan was to wait it out. However, before the day was over, Schoenberg’s house was gone. Eventually, the flames reached his daughter’s house, and they fled to Venice to stay with another daughter.
The inferno also blasted to ash Belmont Music Publishers, which was housed in a building behind his home on Bienveneda Avenue. For 60 years, Belmont served as a bridge between Schoenberg — often referred to as the man who invented “modern music” — and performers and scholars, providing access to his music.
While the majority of the composer’s original works remain housed at the Arnold Schönberg Center in Vienna, Belmont’s entire physical inventory, upwards of 100,000 items including manuscripts and original scores, along with correspondence, books, photographs and artworks, had all perished.
For Larry Schoenberg, it wasn’t merely the physical loss, but “a profound cultural blow” — yet another example of how the wildfires have destroyed a trove of L.A.’s cultural heritage.
Schoenberg revolutionized Western compositional techniques and helped shape modern music worldwide, but he also had a profound and still-present influence on the cultural life of Los Angeles.
“The scale of this fire makes it hard to handle how big the losses are,” said Joy H. Calico, chair of the Department of Musicology at UCLA’s Herb Alpert School of Music. “It’s not as if his entire legacy was lost but certainly in terms of the practical reality of performing his music, this is a serious blow.”
***
Schoenberg’s wife, Gertrud, a librettist, and son Larry established Belmont Music Publishers in 1965. Belmont was a play on the family’s surname — “beautiful mountain” — in German.
Following the composer’s death in 1951, numerous people wrote to Gertrud requesting his music. There was so much back-and-forthing with the publisher in Germany that his heirs decided to create Belmont, as Gertrud owned the rights to her husband’s catalog. They initially set up the business in a converted garage behind their Brentwood home, selling and renting curated editions of Schoenberg’s sheet music for performances.
“We’re not very business savvy people,” Larry Schoenberg recalled. “We were spending more than we were collecting.”
They also had to overcome the negative connotation business had in their home. “We grew up where business was kind of a dirty word,” he said. His father used the derisive German term “der Gauner,” which means crook or swindler.
But Belmont, which later moved to the building behind Larry Schoenberg’s Pacific Palisades house, became a business successful in preserving Schoenberg’s legacy, making his works accessible to the world.
Last September marked the 150th anniversary of Schoenberg’s birth. A flurry of performances took place in Europe and the United States, including by the San Francisco Symphony and the Los Angeles Philharmonic. Many of these performances got their scores from Belmont.
At 83, Larry Schoenberg, a former math teacher at Palisades High School, has been Belmont’s steadfast guardian.
He maintained a whiteboard with all of the upcoming performances of his father’s music and what needed to be shipped. Everything was well labeled and organized, but nothing was digitized.
“This is just my stupidity,” he said. “Everything was backed up, except it was backed up locally. I had hard drives and thumb drives. I didn’t use the cloud, I was a little bit worried about using the cloud. Well, of course, now I wish I had everything in the cloud. What that means is essentially we have nothing.”
The fire claimed the full range of Schoenberg’s groundbreaking compositions held there, from early Romantic pieces to his revolutionary 12-tone works and transformative masterpieces like “Pierrot Lunaire.” Also lost were performance posters, a bust of Schoenberg and ephemera such as the fanciful playing card sets the composer designed.
Also gone was the irreplaceable library filled with 50 years worth of manuscripts and correspondence from conductors, such as Zubin Mehta and Claudio Abbado, who performed Schoenberg.
“When the conductors return the scores, they put a lot of information in there. That’s really crucial for performances,” said Larry Schoenberg. “And that’s all gone. The correspondence goes back to the ’70s. In fact, every once in a while I look at some of this correspondence.”
Last December, Larry shipped a box of 16 books to his nephew E. Randol Schoenberg. They are all that remains from Belmont’s library.
Reflecting on all that was lost, he said, “The memories are still there. I didn’t lose those yet.”
***
Arnold Schoenberg was already a towering intellectual and cultural figure when he landed in Los Angeles in 1934.
Born in Vienna in 1874, the composer also was a writer, teacher, inventor and painter.
Uncompromising and innovative, he devised the 12-tone method, a musical structure that broke with the traditional rules of tonality and composition. Although it prompted (and still does) enormous debate, it was also considered by many the future of music. The Nazis, however, labeled his music “degenerate.”
In 1933, after receiving a telegram from his brother-in-law, the violinist Rudolf Kolisch, saying “a change of air is recommended,” the composer, then 60, and his family fled Berlin on the midnight train to Paris, leaving everything behind, according to his grandson E. Randol Schoenberg, known as Randy.
Schoenberg spent a brief time in Boston and New York, before fleeing the harsh East Coast winters for Los Angeles. “It is Switzerland, the Riviera, the Vienna Woods, the desert, Salzkammergut, Spain, Italy — everything in one place. And along with that scarcely a day, apparently even in winter, without sun,” he wrote Anton Webern, the Austrian composer and conductor.
His arrival was part of the exodus of German-speaking Jews who emigrated from Nazi-occupied Europe that helped usher in a golden age of classical music in Los Angeles, with many writing film scores.
In 1936 Schoenberg bought a Spanish Colonial in Brentwood, and the house became a center of cultural life for European exiles, entertaining the likes of Thomas Mann and Franz Werfel and his wife, Alma Mahler-Werfel.
There, Schoenberg befriended Hollywood luminaries. Shirley Temple was a neighbor, and Harpo Marx was a friend, as was George Gershwin, who was also his tennis partner. According to Randy, his grandfather was playing a match with Gershwin when his wife gave birth to Randy’s father, Ronald, in 1937.
Schoenberg, who taught at UCLA, had a reputation as a gifted teacher whose tutelage held cachet. When the German conductor Otto Klemperer came to the city to perform at the Los Angeles Philharmonic, he studied with Schoenberg.
With finances tight, he took on private students, a great deal of them composers who had come to California to work for the movie studios. “They wanted to learn what sort of tricks and techniques, you know, how do I make my music sound like this?” Randy said. “They would come for a couple lessons and then put it on their resume, ‘studies with Arnold Schoenberg,’ and never come back.
“He got wise to this and decided to charge a lot for the initial lessons. And if the person turned into a real student, he would reduce the rates.”
Several of Schoenberg’s “real” students, such as John Cage, Alfred Newman and David Raksin, became hugely successful, and their relationships helped to perpetuate the composer’s lasting influence in Hollywood and beyond.
Posthumously, Schoenberg’s impact is undeniable.
Film composers have long used his pioneering 12-tone technique to produce dissonance and unpredictable melodies, such as Jerry Goldsmith, in his benchmark score in the 1968 film “Planet of the Apes.”
While Schoenberg’s music continues to be played all over the world, his notes are all over Los Angeles.
The music building and main concert venue at UCLA are named after Schoenberg. In May the opera “Schoenberg in Hollywood” will be performed at UCLA. It presents three imagined vignettes from the composer’s life.
His heirs who have diligently tended his legacy have also been important civic and cultural figures in the life of this city. In addition to his son Larry, Ronald is a retired judge. He lives with his wife, Barbara, the daughter of the composer Eric Zeisl, in Schoenberg’s original Brentwood home. Their son Randy, a lawyer, won a significant case before the Supreme Court in 2004, leading to the government of Austria returning five Gustav Klimt paintings stolen by the Nazis to the family of Maria Altman.
The Schoenberg family, four members of which have lost homes in the fires, say they hope to create digitized scores from the manuscripts kept in Vienna as well to recreate other documents and correspondence that exists in the hands of others around the world. Larry Schoenberg said they’ve received a wellspring of support and encouragement from all over the world.
“It’s astounding to think about how that legacy was moved out of central Europe because of the peril there — only to find it facing a different crisis here,” Calico said.
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