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12. Fred pays his girlfriend’s tax bill in order to avoid losing his house to the IRS. Sadly, he then dies from financial stress. Fred had always said that if anything ever happened to him, he wants all his property to go to his saintly little sister who is raising twelve abandoned poodles on her own. Who gets Fred’s share of the house? _ ______________________________________________________________________________ 13 . The beguiling girlfriend co-signs a car loan for Deadbeat Dan who makes about 6 months of the loan payments then defaults and moves to another state taking the car with him. Concerned about her credit, she takes over the payments. She tells Deadbeat Dan “That car is one-half mine and since you aren’t making any payments, it’s all mine! Bring it back!” He says no and keeps on driving. Who’s right? Will his sister have to continue making payments on the car to save her credit? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 14. The beguiling girlfriend meets a new guy. They fall madly in love and get married. New Guy owns a a plane, a boat, and a nice house all bought before the marriage. She thinks she is now a co-owner of all these things. Is she? _ ______________________________________________________________________________ 15. If you plan to share ownership, become a co-borrower, co-signer or guarantor, you should know and understand the ________ and ___________. It’s a good idea to talk with an expert , such as an __________or ___________ before entering into any joint or co-owner relationship. If you are in a joint debtor relationship use extreme caution! 16. T F A co-signer has less risk than a co-borrower because the creditor must first look to the owner of the financed asset for repayment. 17. T F A co-borrower is only liable for repayment of a debt up to the percentage of their ownership of the asset purchased with the debt. 18. T F If you co-sign a loan, you should carefully monitor the borrower’s repayment because late payments and defaults negatively impact your own credit score. 19. T F Owning an asset as a tenant-in-common provides more flexibility of ownership than owning as a joint tenant. 20. T F Community Property is a form of ownership specifically for unmarried couples. PRODUCT PREVIEW
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 319
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