davesays300 green2KENTUCKY (9/22/13) – This week Dave discusses 'A tricky joint account' and 'Don’t use a land contract' 'Co-signer passed away'

Dear Dave,
I’m getting married soon, and we plan to open a joint checking account. Keeping a register accurately will be difficult because I travel two weeks out of every month. Do you have any suggestions for keeping track of things, or should we just rely on online access to the account? -Ed

Dear Ed,
I would set up a second checking account, one to which you both have access, that’s only for travel. Giving you both access allows you to track what you do and her to see what’s going on and act as your backup when it comes time to balance the register.

Here’s an example. A few years ago we were remodeling our home. My wife and I opened a separate checking account and put all of our remodeling money in there. It was easier to keep the money separate, but we both had access and were involved in the account.

Understand, this wasn’t a “his” and “hers” arrangement. It was merely for the purposes of keeping our everyday activities separate from the remodeling budget. When you get married the preacher proclaims you as one. That means throughout life and everything involved, including your finances! —Dave

Dear Dave,
What’s your opinion on buying a house on a land contract? -Keith

Dear Keith,
I would never, under any circumstances, ever buy a property on a land contract. In some places this kind of thing is called a “contract for deed,” but the problem is you don’t have the deed. The property is not in your name. You could easily run into a situation where you’ve paid the balance down for 10 years, then the guy you’re paying gets into a car wreck or another kind of financial trouble and someone slaps a $500,000 lien against the property that’s supposed to be yours.

Don’t pay for property that isn’t in your name, Keith. Land contracts, or contracts for deed, are dangerous for the buyer and just plain stupid! —Dave

Dear Dave,
My father co-signed for my niece’s student loans, and recently he passed away. My mom didn’t sign for the loans, but would she be held responsible now? -Denise

Dear Denise,
I’m really sorry to hear about your dad. But no, your mom is not on the hook for the loans. Your dad’s estate could be held responsible though.

When you die, what you own stands good for what you owe. So anything he owned—perhaps his and your mother’s home—would have to stand good for it. This means that while your mom isn’t liable, the student loan would have to be cleared as if it were a normal debt in order for your mom to keep, free and clear, any of the stuff your dad owned.

There’s another possibility also. Federally insured student loans do not count against your estate when you die. If you pass away or become permanently disabled, the loan is forgiven. I believe that’s true for co-signers as well, but make sure you check into the situation carefully. We’re talking about the federal government, and they don’t usually operate in the realm of common sense! -Dave

Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at www.daveramsey.com.


Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

Aces Pull Away for Win over Mustangs

GREENVILLE, Ky. (4/24/15) — Owensboro Catholic pitcher Jacob Mulcahy pitched a complete game as the Aces defeated the… Read More

Webster County Traffic Advisory

WEBSTER COUNTY, Ky. (4/25/15) — The Kentucky Transportation Cabinet plans to close a section of Kentucky 132 in Webster… Read More
1 DOW 18,080.14
+21.45 (0.12%)    
2 S&P 2,117.69
+4.76 (0.23%)    
3 NASDAQ 5,092.08
+36.02 (0.71%)    

Most Read This Week

April 17, 2015 11786

An Open Letter from an Addict

by Olivia Kirks
April 23, 2015 7413

Man Charged with Sodomy, Incest/Victim under 12

by SurfKY News
April 18, 2015 5756

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 20, 2015 4849

Nortonville Woman Charged with Meth Possession at…

by Madisonville Police Department
April 22, 2015 3993

Crime Stoppers Fugitive of the Week – April 22,…

by Hopkinsville – Christian County Crime Stoppers

Most Read This Month

April 17, 2015 11786

An Open Letter from an Addict

by Olivia Kirks
April 02, 2015 8791

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News

Stories Trending Now

April 24, 2015 3971

UPDATE: Police Can't Substantiate Injured Man…

by Doreen Dennis, SurfKY News
April 24, 2015 920

Career Fair Provides Students Information about…

by Tammy Holloway, SurfKY News
April 25, 2015 901

Above and Beyond: Wade Simons

by Gary Gates, SurfKY News
April 24, 2015 886

Hopkins District Court Fines Handed Down

by Karen McKnight
April 24, 2015 881

Madisonville Police Arrest Reports Released -…

by SurfKY News
April 23, 2015 847

Regional Eighth Grade Math Contest Held

by Joyce Riggs
April 24, 2015 842

Baptist Health Holds ‘Walk in the Park’ as Part…

by Tammy Holloway, SurfKY News
April 24, 2015 840

Elementary Girls in Good GRACES with Unique…

by Tammy Holloway, SurfKY News
April 24, 2015 838

Probation and Parole Violators - April 24, 2015

by Gary Gates, SurfKY News
April 24, 2015 759

Muhlenberg District Court Fines Handed Down

by Charles W. Riley II, SurfKY News