Sad Story

[elroy]

Hope everyone is enjoying the holiday season. Wanted to share this story because I’ve seen a pattern along this theme from posts on this site and others. Went into work today to find out one of my coworkers retired 67-year-old father in-law unexpectedly died and he all of a sudden had a new truck. Death is always a traumatic family experience but especially during the holidays when stress levels is already high. I found out about his new truck (a 2005 Ford XLT) that was owned by his father in-law. Turns out he did not have any life insurance and the spouse cannot afford the payments. So he is ending up with this very nice truck along with the “nice” payments until he can sell. I sympathized with the situation but didn’t make any additional comments. Seems he left his wife financially dependent on family when a used truck without payments and some life insurance could have at least lessened the burden.

 

[mickeyd]

Indeed a sad situation however, both he and his wife brought this upon themselves. A retired husband who can not control his "need" for a new truck, and his wife going along with it, seems to be the formula for disaster.

I'm sorry for your co worker's loss in this holiday season.

 

[soupcxan]

I don't understand why the truck became the co-workers problem. If the father was the creditor on the truck and he died, they can't force the son-in-law to make the payments...just let them repo the stupid thing.

 

[elroy]

soupcxan,

I assume the car loan was made in both names. But good question. I'll ask when it seems more appropriate. He has taken over this loan and possesion of the truck as a favor to his mother in law. He was not lible or forced to do it. Hopefully he can do better selling it for his mother in-law then letting it get reposesseded but Fords depriceate quickly and the loan may be for more then the car is worth.

 

[Texas Proud]

I don't understand why the truck became the co-workers problem. If the father was the creditor on the truck and he died, they can't force the son-in-law to make the payments...just let them repo the stupid thing.

More than likely that it was in both their names... and if it was repoed and sold for a loss they might still come to collect the difference....

The SIL is just being a 'good' family memeber for his wife who does not want to stress about her mother having to pay for that truck..

 

[lets-retire]

Hopefully he can do better selling it for his mother in-law then letting it get reposesseded but Fords depriceate quickly and the loan may be for more then the car is worth.

I'd say some Ford depreciate quickly. Mine hasn't moved more than $2,000 in the last 3 years.

 

[jazz4cash]

Seems odd this happened so unexpectedly and already the truck payments are an issue? Any chance the coworker wanted the truck anyway? I would imagine the family has much larger issues than the payments on the truck !

 

[frayne]

Stupid question, why is a 67 year old man taking out a loan to buy a new truck ? That said, why didn't he get the death pay-off feature in the loan ? Something seems amiss here.

 

[Jay_Gatsby]

I've been seeing a great number of these types of stories on this and other financial/retirement boards, and finally feel compelled to give my two cents.

I'm not so cold-hearted that I can't see helping out an "innocent" family member truly in financial need for a short time until s/he can continue on unaided. That said, I haven't worked and saved for ER just to bail out someone who chose not to do so. In the vast majority of cases, all I'd be doing is enabling the bad behavior that caused the problem in the first place, and my assistance would prevent an important lesson from being imparted. Likewise, ignorance of saving for retirement, or relying on someone else to do it for you, are not viable excuses. In fact, I'd go as far as saying that there is no excuse for not taking charge of your own financial affairs. This applies particularly to married couples where one spouse often leaves financial planning and investing solely up to the other. Doing so is simply willful ignorance, which is contrary to being "innocent" of any wrongdoing.

If you don't take charge of your financial future, you can only blame yourself when you don't have one.

 

[elroy]

All good comments. Something was defiantly amiss with the in laws and the SIL had no obligation other then “its family.” I posted this as a warning even if it is preaching to the choir. I have many friends and unfortunately some family members, which are completely oblivious to financial issues. Some What if it’s your mother, father, daughter, son that need significant financial assistance. What do you do? I sure many of us can think of real life examples. How can you plan for unknown events?

 

[Jay_Gatsby]

How can you plan for unknown events?

In the case of your co-worker's MIL, it's called an emergency fund of 6-12 months of expenses. Likewise, you can plan for most contingencies -- known or unknown. Even health issues can be anticipated and planned for, although most people don't want to even consider the possibility that they ever could be in worse health than they are today. That would mean retirement won't be as rosy as financial companies, senior living magazines, etc... make it out to be.

 

[Nords]

If that situation occurred around here, tomorrow the co-worker would be driving the truck down H-1 with a big tinted sign on the cab window reading, in foot-high flowing script,

In loving memory of [insert decedent's name here]