Deceased car secured loans / finance

Buxtob

Hello,
My dad died recently and left behind a car. I did a HPI check on it and it states theres no finance on it.
Would any secured loans against the car show on the HPI check as he was 17k in debt.
Do you think its safe to sell, the bank won't talk to me because his sister is dealing with his bank  

Thank you kindly.

DUTR

Why isn't your sister dealing with it?
A sad loss losing your Father.

born_again

Depends on the type of secured loan. It would have to be something that was secured against the car, to show. Which would usually be via a dealer.
Did your dad leave a will?
As the sale will have to go to his estate and if in debt could well be used to pay off some of it.

The_Rainmaker

You can't sell the car it isn't yours.  It may become yours (unlikely if he was in debt) but in the meantime you need to discuss with the executor of the estate.

Just don't try being cute here this will bite you back.

Buxtob

born_again said:

Depends on the type of secured loan. It would have to be something that was secured against the car, to show. Which would usually be via a dealer.
Did your dad leave a will?
As the sale will have to go to his estate and if in debt could well be used to pay off some of it.

I just thought debt was written off when someone died and the only way they could take the car was if the loan was secured against the car as they would own it still. My dad died with no will so rules of intestacy apply i believe which means everything split between his 3 children. Not that there will be much to split as he didn't own a home he just had a car and some possessions.

Thanks for the help.

AdrianC

Buxtob said:

I just thought debt was written off when someone died

Nope. If somebody dies with £20k of assets and £10k of debt, then the executors need to clear off the debt before distributing the balance of £10k among the beneficiaries. If somebody dies with £20k of assets and £30k of debt, then the executors need to clear off the debt the best and most equally they can, before the remaining debt is written off.

and the only way they could take the car was if the loan was secured against the car as they would own it still.

If somebody's car has a loan secured against it, then the car is owned by that person, but the lender can take possession and ownership of the car if the debt goes unpaid.

My dad died with no will so rules of intestacy apply i believe which means everything split between his 3 children.

Correct.

Not that there will be much to split as he didn't own a home he just had a car and some possessions.

And his debts need settling first. Assets need to be sold to raise money, but your sister needs to talk to the lender if the loan is secured against it. If the car is not owned, but on a PCP or lease, then the car is not part of his estate - it's owned by the financier.

Keep_pedalling

If someone dies with secured debt that has the first call on the estates assets, next comes funeral costs, then unsecured debt, and finally  (if anything left) the beneficiaries.

Dr_Crypto

The usual advice on here is not to become involved with an insolvent estate. Arrange the funeral, remove any sentimental items from the house and walk away. It only brings hassle and liability to any putative administrator. 

I think this is good advice as it seems your Dad doesn’t have many assets. 

Manxman_in_exile

Dr_Crypto said:

The usual advice on here is not to become involved with an insolvent estate. Arrange the funeral, remove any sentimental items from the house and walk away. It only brings hassle and liability to any putative administrator. 

I think this is good advice as it seems your Dad doesn’t have many assets. 

Yeah - you and your sister (and other sibling?) need to be very careful if your dad had £17k of debt and didn't leave enough assets to cover it.  It is possible that any of you who end up dealing with his estate (other than to simply tell his creditors that he's dead and his estate is insolvent) could end up being personally responsible for his debts.  The usual advice is to stay well clear of insolvent estates.

You should post full details on the Deaths, Funeral and Wills board.  Depending on the detail and what you (or your sister) have already done, you might be advised to seek legal advice.