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Personal Car Loan after Death

2

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Matthew_c wrote: »
    The house automatically transferred to my mother but you could be right. Need to check this also

    On what basis?

    Are you the executor of the estate? Take care if you are as you could find yourself with a personal liability.
  • Matthew_c
    Matthew_c Posts: 58 Forumite
    Yes, I am one of the executors of the estate - the will states that the house automatically transfers to my mother.....We were hoping that the endowment would automatically pay the remaining mortgage off but it was short by £1500.


    The mortgage was in my late stepfathers name only although they had been living together for 20 years.


    I note that the car finance is a fixed sum loan agreement....not a hp agreement
  • G6JNS
    G6JNS Posts: 563 Forumite
    Matthew_c wrote: »
    Yes, I am one of the executors of the estate - the will states that the house automatically transfers to my mother.....We were hoping that the endowment would automatically pay the remaining mortgage off but it was short by £1500.


    The mortgage was in my late stepfathers name only although they had been living together for 20 years.


    I note that the car finance is a fixed sum loan agreement....not a hp agreement
    The funeral expenses have to be paid first. From what you say the estate is insolvent. The standard advice is not to deal with an insolvent estate. The problem is that the house will be regarded as part of the estate and the creditors could force a sale. I suggest you get urgent professional advice from the CAB or a solicitor. If the deficit can't be raised then the consequences are clear.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Matthew_c wrote: »
    - the will states that the house automatically transfers to my mother....

    Debts have to be addressed first.
  • noh
    noh Posts: 5,817 Forumite
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    The estate isn't insolvent if the house is part of it.
    Th OP states that the house was passed to his mother by the will which implies that the house was owned by the stepfather as sole owner.
  • g6jns_2
    g6jns_2 Posts: 1,214 Forumite
    noh wrote: »
    The estate isn't insolvent if the house is part of it.
    Th OP states that the house was passed to his mother by the will which implies that the house was owned by the stepfather as sole owner.
    It depends on the tenure. It could have been jointly owned. Although it may not be insolvent the house may need to be sold to pay the debts if the money cannot be raised by other means.
  • Keep_pedalling
    Keep_pedalling Posts: 21,264 Forumite
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    edited 26 February 2015 at 11:45PM
    Be careful Hyundai finance deals usually mean the car is effective owned by the finance company until the loan is paid off which means you will not be able to sell it to pay the funeral costs.

    Does your mother have sufficient savings that can pay off these debts? If so it would simplify matters and avoid any need to sell off the house and downsize, which I would imaging would be pretty traumatic for her.
  • xHannahx
    xHannahx Posts: 614 Forumite
    If there is equity in his property and assets, the liabilities would need to be settled from that equity.
    Only what's left after all liabilities have been paid would pass to the person receiving the inheritance.
    Run a HPI check on the car to check whether the finance Is secured against the car if you are unsure. The fact it's Hyundai finance I would be pretty certain it is HP against the car rather than an unsecured debt,
  • noh
    noh Posts: 5,817 Forumite
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    g6jns wrote: »
    It depends on the tenure. It could have been jointly owned. Although it may not be insolvent the house may need to be sold to pay the debts if the money cannot be raised by other means.

    If it was owned as joint tenants ownership would not be transferred by the will.
  • Matthew_c
    Matthew_c Posts: 58 Forumite
    It makes it a little more difficult with my mother as she is disabled/deaf and currently lives in a 1 bedroom house. She doesn't work nor does she have any savings...The thought of having to sell the house would probably finish her off...think I will get some advice from a solicitor....
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