Mum died mid Fiat car-finance agreement. What to do next?

mabinogion_2

My husbands Mum has just died and has over two years to run on a Fiat car finance contract. We are storing the car and trying to figure out the next step.

The bank have stopped all direct debit payments from her account as expected. It was one of those arrangements where you put a deposit on the new car, then pay monthly for three years, and at the end of the three years you give the car back or pay a balance to keep it.

Obviously the car will have to go back to the finance company and we are in the process of informing them of whats happened, but does anyone have any idea what happens next in this kind of situation? Concerned that there will be money owing once they take the car away.

Thanks folks

Gingernutty

You need to hunt down the paperwork for the original deal and see what that says for starters - a lot of these deals quite often have instructions or 'blurb' relating to what happens in the event of the death of the purchaser.

I take it, that, as she alone was paying back the money, one way or another she died single. Divorced, widowed, separated?

If there is no partner, your husband is handling the estate, then he needs to find all the paperwork and apply to be an executor/administrator.

Sorry for your loss.

madbadrob

In reality I would expect the finance company to take the vehicle back and then sell it on without chasing the estate however they may well do so. It will all depend what was in the finance agreement. There may well be insurance that covers the costs of the car that can be claimed and you could then keep the car, again this needs to be checked out. At the end of the day if there is no money left in the estate (which by the fact she was able to get this agreement I doubt) then the finance company would have to write it off. Do not agree to pay any losses yourselves

Rob

madbadrob

In reality I would expect the finance company to take the vehicle back and then sell it on without chasing the estate however they may well do so. It will all depend what was in the finance agreement. There may well be insurance that covers the costs of the car that can be claimed and you could then keep the car, again this needs to be checked out. At the end of the day if there is no money left in the estate (which by the fact she was able to get this agreement I doubt) then the finance company would have to write it off. Do not agree to pay any losses yourselves

Rob

jackyann

As said: read the small print.
Then ring the finance company, explain and say, in a confident voice "now, how to we organise this?" - give the impression you need them to explain the organisational details, not that you are anxious!
If they say they want any money or involve you in anything you are bothered about say "I need to check this with the solicitor / the executor / the family".

If you feel a bit too wobbly, ask a family friend to ring.

mabinogion_2

Yes she was a widow. I forgot to mention it, and husband is executor. We've got hold of the paperwork and are trying to get things sorted, but the festive season will no doubt slow things down. Will let you know how it pans out. Thank you all for the help and support.

In other (related) news, BT handled the closing of the phone account very well indeed. Closing the Plusnet broadband account was less straightforward and involved sending a scan of the death cert, but overall it went well. Still haven't got around to contacting the utilities company, but as its xmas we're taking a break to enjoy the day and have a few glasses of wine and some cracking food.

Thanks all, and happy holidays!

BobQ

mabinogion wrote: »

Yes she was a widow. I forgot to mention it, and husband is executor. We've got hold of the paperwork and are trying to get things sorted, but the festive season will no doubt slow things down. Will let you know how it pans out. Thank you all for the help and support.

In other (related) news, BT handled the closing of the phone account very well indeed. Closing the Plusnet broadband account was less straightforward and involved sending a scan of the death cert, but overall it went well. Still haven't got around to contacting the utilities company, but as its xmas we're taking a break to enjoy the day and have a few glasses of wine and some cracking food.

Thanks all, and happy holidays!

This is not your problem or your husband's PERSONALLY. The car along with any other assets your MIL owned are part of her estate and its the job of her executor to deal with. You say your husband is your MIL's executor?. How do you know this? Presumably she left a will saying he was the sole executor. If not he can only act as an executor if he obtains a Grant (of Administration). If there was a will it will be a Grant of Probate.

If your MIL had no significant assets then many organisations will deal with the next of kin (as you have found with the utility firms). They may also pay any money owed to the estate to the next of kin (in return for agreeing to indemnify then against a false claim).

What happens to the car depends on the terms of the loan. Its possible that the loan had an insurance policy that repays the loan. If so the car belongs to her estate and executor can sell it or given it to her beneficiaries. But if there is no insurance to repay the loan, the executor needs to discuss the matter with the finance company. All they want is their money back. They will take the car back if you want and sell it (now much of the price of the car has MIL paid?). But they may be happy to accept an offer that replays the loan in full if the estate wants the car. If MIL has already paid a large part of the loan this may make sense.

madbadrob

Bob if the estate is under 5k has no property or share involved then probate is not required. Letters of Admin are again only needed if any of the above comes into play. Also if a bank will release monies over 5k you may not need to obtain probate or letters.

Rob

stebiz

If you don't want it to affect the Estate then make the next few payments and then at 50% you can hand the car back legally.

BobQ

madbadrob wrote: »

Bob if the estate is under 5k has no property or share involved then probate is not required. Letters of Admin are again only needed if any of the above comes into play. Also if a bank will release monies over 5k you may not need to obtain probate or letters.

Rob

I agree that this is the case with low value estates, but the OP seems to be entirely thinking of specific issues like the car and utilities and has not actually said what the estate comprises. I was just trying to make sure she was considering the bigger picture.

For example if the deceased owned a house? Equally what is the value of the car and her interest in it? Most people who are paying off a "new car" on finance would have some other assets or income I imagine?

madbadrob

BobQ wrote: »

I agree that this is the case with low value estates, but the OP seems to be entirely thinking of specific issues like the car and utilities and has not actually said what the estate comprises. I was just trying to make sure she was considering the bigger picture.

For example if the deceased owned a house? Equally what is the value of the car and her interest in it? Most people who are paying off a "new car" on finance would have some other assets or income I imagine?

That is something I had already said myself.

On these boards I tend to try and just answer the question asked because I feel overloading someone with so much info at once and at a trying time such as after a recent death is counter productive. Maybe I am wrong there I dont know

Rob