Co-signing for son’s credit card could put parent on the hook
The information in this column is intended to provide a general understanding of the law, not as legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
Q: My 19-year-old son lives at home with me, and he is terrible at managing money. He wants me to co-sign on a credit card for him. If he buys things and later can’t afford to pay the bills, will I be liable?
A: If you agree to your son’s plan to co-sign on a new credit card, if he ever doesn’t pay the
monthly bills, it will be as if you made the charges yourself. You will have to make those payments for him.
Therefore, if you don’t want to be stuck paying his bills, don’t agree to co-sign on the card.
Q: I live in a gated neighborhood governed by a homeowners association. The streets have fallen into disrepair, but the board refuses to make any repairs. The board never communicates with the owners, nor does it appear members ever
have meetings. We are considering suing the board for neglecting its duty. What do you think our chances are for success?
A: Your chances of success are better than 50-50.
If you are thinking of suing, then step one will be to hire an attorney. Before you sue, your lawyer will hopefully attempt to put pressure on the board to force it to act.
Filing a lawsuit should be viewed as an absolute last resort, mainly because it is often very expensive for two opposing sides to battle it out in court.
Q: My husband has two
adult children from another marriage. I am the owner of the home where we live. If he dies first, do his two children have any right to any part of my home?
A: The home is your separate property, meaning you are the sole owner of the property.
Even so, it is possible that your husband’s two children might claim that they are entitled to some sort of reimbursement from you equal to the portion of their father’s property that was used to pay for the principal due on mortgage payments that are being made during your marriage.
If you want to avoid this problem, it’s easy to prevent while your husband is alive. You can ask him to sign an attorney-prepared form whereby he declares the home is entirely your separate property and that neither he nor his estate has any claim to reimbursement.
Another option is for him to add a provision to his will giving you all of his interest, if any, in the home.
Ronald Lipman, of Houston law firm Lipman & Associates, is board certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@lipman-pc.com