In calculating a person's eligibility for a mortgage, which is one of the most common reasons for calculating a personal debt-to-income ratio, lenders prefer to see a number lower than 28 percent on the back end and under 36 percent on the front end. About.com defines those terms as being your total debt ratio before and after housing costs are factored in to the equation.Know More
About.com describes the method for calculating your debt-to-income ratio. Simply gather together and add up all of your monthly bills. If you have quarterly or annual debts, average them out over 12 months and add them to your monthly payments. Once you have that number, the total amount you have to pay out in a month, divide it by your total monthly income, again with quarterly or annual bonuses factored in to the number. The resulting number is your debt-to-income ratio.
Lenders look at two numbers when assessing your creditworthiness. The first, according to About.com, is the pre-housing cost of living, called the "back end." This number should be less than 28 percent. The "front end" is your overall ratio once housing costs are included. Ideally, this is less than 36 percent of your month-over-month income, indicating that you are fundamentally solvent and can afford to take on the obligation of a mortgage.Learn more about Financial Planning
A living trust is a document that places a person's assets into a trust throughout his lifetime. The assets are given out to beneficiaries designated by the person who created the trust at the moment of his death. A living trust is similar to a will.Full Answer >
If a beneficiary dies, the assets in a person's will go next to a secondary beneficiary, when applicable. If a person has no secondary beneficiary or if that person dies, the executor of a will is responsible to distribute assets in line with the will or state law, reports Nolo.Full Answer >
The individual who is interested in challenging the executor of a will must initiate a court proceeding, and the person doing so must have an interest in the assets of the estate, says Free Advice. The interested person is usually beneficiaries to the will or a creditor of the estate.Full Answer >
Co-trustee powers include the responsibility of managing a deceased person's assets, such as filing taxes and overseeing the distribution of assets to beneficiaries. A co-trustee who disagrees with the actions of other co-trustees in writing is not liable to the beneficiaries for the consequences of such actions.Full Answer >