Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

Dave Says – September 22, 2013

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.

© 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 by using one of the social media links below.

3/13 - 16
button coupons
3/13 - 16
3/13 - 16
button classifieds

In Other News...

Providence Police Reports Released

PROVIDENCE, Ky. (1/26/15) ― The Providence Police Department released the following arrest report Monday, Jan. 26.… Read More

Merle Travis Day Celebration This Saturday

POWDERLY, Ky. (1/26/15) — "Sixteen Tons," "Dark as a Dungeon," "Smoke, Smoke, Smoke (That Cigarette)," "So Round, So… Read More
3/13 - 16

Most Read This Week

January 23, 2015 8983

Local Church's Faith Restored; 71 Souls Saved…

in Video by Gary Gates, SurfKY News
January 22, 2015 7250

Nortonville Man Accused of Selling Drugs near…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 21, 2015 6471

KYDOT Pre-Treating Roads Thursday in Antipation…

in Top News For All Sites by Keith Todd
January 22, 2015 6032

MCEA Head: Further School Mergers Might Ease…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
January 23, 2015 5764

Parents Face Charges after Marijuana Joint Falls…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 25, 2015 5030

Dean’s List Announced

in Top News For All Sites Touching Hopkins by Joyce Riggs
January 21, 2015 4937

Man Arrested after Allegedly Nodding off on Baby…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 23, 2015 4599

Nortonville Woman Charged for Meth Possession

in Local (Hopkins) Top News by Hopkins County Sheriff's Office/Hopkins County Detention Center
January 26, 2015 4241

KSP Arrests Two on Child Porn Charges; MPD…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
January 22, 2015 3753

Local Family Business Changes Hands

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News

Stories Trending Today

January 26, 2015 4241

KSP Arrests Two on Child Porn Charges; MPD…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
January 26, 2015 3370

Man Goes to Jail after Allegedly Attacking Family

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 25, 2015 3064

Juvenile Hit by Vehicle at McDonald's

in Local (Muhlenberg) Top News by GPD Officer Wes Miller
January 26, 2015 2324

School Board Votes 3-2 for Utility Tax

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
January 26, 2015 2289

Madisonville Post Welcomes New Troopers

in Top News For All Sites Touching Hopkins by Trooper S. C. Recke
January 26, 2015 2079

Hopkins County Sheriff's Reports Released

in General News For All Sites by Hopkins County Sheriff's Office
January 26, 2015 1983

Madisonville Police Arrest Reports - Jan. 26, 2015

in Hopkins News by Madisonville Police Department
January 26, 2015 1840

Kentucky Highway Crews Prepared for Snow into the…

in Top News For All Sites by Keith Todd
January 26, 2015 1767

Hopkins District Court Fines Handed Down

in Local (Hopkins) Top News by Circuit Clerk's Office
January 26, 2015 1511

McClearn Remains Optimistic I-69 Signs up Between…

in Top News For All Sites Touching Hopkins by Keith Todd

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2015 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flr subscribevideoitunessocial rss