Q: My cousin is married but has been separated for more than 10 years. They didn't divorce due to her being able to stay on his health insurance. Her husband is a big spender and if he should pass away, could she be liable for the balance on his credit card? It is not a joint account. — Pat, via e-mail
A: The fact that your cousin is separated in most situations is of no moment, she and her husband are still married! If he passes away and leaves a large credit card balance is not unusual. If there are assets in his estate, those assets would have to be used to settle the account. If there is no estate, your cousin has no obligation to acquire those debts since she is not on the credit account. If there are others on any of his accounts, they may have obligations. It would seem to me that your cousin is completely safe.
Q: We have a simple IRA with our employer. We have had it since 2005. Our broker invested us in a variable annuity. Is this a good idea? If not, how do we get out of it without being penalized? Where is a good place to put it? Any help would be appreciated! — E.B., via e-mail
A: There are no simple answers to your question. The fact that you had the variable annuity for six years tells me that the likelihood is that there will be little or no penalty if you wish to invest elsewhere. While I am not a particular fan of Variable Annuities, there are circumstances where they serve a purpose. You haven't indicated your age, amount of monies that are in the IRA, etc. Without these specifics, any advice that you would be given would be shaky. If you would drop me another note, simply telling me your ages, your tolerance for risk and when you intend to retire, I will be able to comment.
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