What to do when a parent has a spending problem and wants your help

The transcript discusses a financial dilemma where a mother is concerned about her daughter cosigning a $300,000 mortgage for her 68-year-old father, who has a history of financial instability. The house in question is valued at over $2,000,000 but is in disrepair. The father promises the daughter will inherit the house, but the situation is complicated by family dynamics and emotional factors. The advice given is to base the decision on financial logic rather than emotion, ensuring all agreements are documented legally.

What is the main financial request made by the father to his daughter?

• To pay off his credit card debt

• To invest in his business

• To buy a new car for him

• To cosign a $300,000 mortgage

What factors complicate the decision to cosign the mortgage?

• The daughter's plans to move abroad

• The father's age and health issues

• The daughter's dislike for the house

• The father's recent job promotion

Why is it important for the daughter to base her decision on financial logic?

• Because her father insists on it

• Because emotions can lead to poor financial decisions

• Because she wants to sell the house immediately

• Because she has no emotional attachment to the house

Under what condition might cosigning the mortgage be considered?

• If the daughter receives a new job offer

• If the father promises to pay off the mortgage in a year

• If the father's new wife agrees to cosign as well

• If the daughter is guaranteed to inherit the house

What is the suggested legal precaution if the daughter decides to cosign?

• To consult with her father's new wife

• To trust her father's word

• To have a verbal agreement with her father

• To ensure her name is on the deed