Am I responsible for paying off car PCP arrangement or my dad's estate

bunnydrumming

Hi. My father died some months ago and in his last weeks, when he was trying to get things in order, he said he wanted me to have his two cars. One car is on pcp and one owned outright. After speaking to the finance company the amount to be settled in 8,500 but the car has been valued at around 5,500. My brother says it's my responsibility to pay the debt because the cars were left to me - is he right or should that debt be paid out of my fathers estate. . The other car is probably worth about 5,000 so I can sell that to pay the debt but would like to keep that car if possible.

Yorkshireman99

bunnydrumming wrote: »

Hi. My father died some months ago and in his last weeks, when he was trying to get things in order, he said he wanted me to have his two cars. One car is on pcp and one owned outright. After speaking to the finance company the amount to be settled in 8,500 but the car has been valued at around 5,500. My brother says it's my responsibility to pay the debt because the cars were left to me - is he right or should that debt be paid out of my fathers estate. . The other car is probably worth about 5,000 so I can sell that to pay the debt but would like to keep that car if possible.

You have no obligation whatsoever. It is up to the executors of the estate to decide what to do with the estate assets. Is there a will and who is the executor. Will there be enough assets to pay off the debts?

bunnydrumming

Yorkshireman99 wrote: »

You have no obligation whatsoever. It is up to the executors of the estate to decide what to do with the estate assets. Is there a will and who is the executor. Will there be enough assets to pay off the debts?

Yes - there would be enough money. I havent asked the executors of the will as it didn't occur to me until tonight that maybe the estate should pay as my brother and I both thought it was my responsibility

Linton

What you say your father said has no bearing on how the estate should be divided. It's the will that matters, and if there is no will the rules of intestacy apply. The beneficiaries can agree a different distribution under a "Deed of Variation".

One of the duties of the executor is to pay your father's debts out of the assets of the estate. This is done prior to the distribution of the remaining assets to the beneficiaries.

bunnydrumming

Thanks Linton. My dad talked to me lots in his final days about what he wanted to go to me, my nephews and my brother - he was property rich and cash poor so he was always trying to make things fair as the farm and property is going to my brother. I will speak to the executor on Monday.

Yorkshireman99

bunnydrumming wrote: »

Thanks Linton. My dad talked to me lots in his final days about what he wanted to go to me, my nephews and my brother - he was property rich and cash poor so he was always trying to make things fair as the farm and property is going to my brother. I will speak to the executor on Monday.

You might need to check the insurance cover on the cars as policies often lapse at the death of the policyholder.

bunnydrumming

Yorkshireman99 wrote: »

You might need to check the insurance cover on the cars as policies often lapse at the death of the policyholder.

I've not been good at all this sorting out stuff but the car was on fleet insurance and so I'm sure it's still covered. Just not sure if the insurers will cover damage caused by my dad before he died.

troubleinparadise

bunnydrumming wrote: »

Thanks Linton. My dad talked to me lots in his final days about what he wanted to go to me, my nephews and my brother - he was property rich and cash poor so he was always trying to make things fair as the farm and property is going to my brother. I will speak to the executor on Monday.

So your brother gets the farm and property, and you get the car's finance debt? Hmmm, someone got the better deal here, I think!

FreeBear

I may be mistaken on this, but under a PCP, I don't think the car would be owned by your father until the final balloon payment had been made. If this is the case, then the car still belongs to the finance company and they may well want it returned.

Get the executor(s) to confirm exactly who owns the car, and what terms & conditions are regarding surrender or final payment.

konark

I'm afraid your father's verbal arrangements with you aren't worth the paper they aren't written on; only the will matters, and if no will, the rules of intestacy.

Freebear is probably right about the car; your father can't give you what he did not own and with so many of these lease deals you actually 'do not own this car '.. What the procedure is on death of the leaser will be also in the small print, if they're wanting £8,500 for a car worth £5,500 I'd give them the car back and let them sue. But this is not your concern and you certainly can't start selling assets of the estate as you are not the executor

Yorkshireman99

It is for the executors to sort out. The OP should not even be using it.