Car finance bereavement

Struckoil

Hello all, 

My dad recently died and I'm the executor of the will. He owned his house with his partner (they weren't married), she owns the other half and I've inherited my dad's share. He wanted to leave his share to me. 

The only debt he has is a car on finance which is only a couple of years old. I've sent back the car for auction but I'm pretty sure that won't cover the cost of the contract. I wondered if anyone has any experience of this and if the car company usually writes off the remaining debt? I'm guessing not, no other savings so the house will need to be sold and I'm thinking it'll come out of my half. I don't mind of course, just miss Dad really and I wasn't expecting house sales and debts to come into play this early on. If anyone has had similar experiences that would be useful. Thanks 

Hoenir

How was the will worded with regards to the property?

Struckoil

Thanks for responding. It says my dad's "beneficial half share" in the property is left to me in trust until such a time when the property is sold. All other "chattles" are left to his partner. 

I cannot sell it, his partner must decide to do this. but I will get the proceeds from dad's share when it is sold.

His partner is weighing up options, she might sell it and move abroad but its too soon to move yet as its very upsetting for her.

TadleyBaggie

What type of finance is it? 

Struckoil

TadleyBaggie said:

What type of finance is it? 

It is a personal car loan secured against the car. 

Brie

I can't tell from what you say if there is any value in the estate. If not simply write to the finance company and say there's no money to pay them.  If the house went to his OH then that can't be considered. 

silvercar

Sorry for your loss.

if only his partner can sell the house, then the car company won’t be able to force a sale. Hopefully they understand this, but don’t be persuaded to take on the debt, it isn’t your debt it belongs to the estate. If there is no cash in the estate, then either the car company will have to wait or write it off.

Costs of funeral come first from any cash left. 

Any other questions you may have can be placed over here - https://forums.moneysavingexpert.com/categories/deaths-funerals-probate, plenty of experts over there.

Struckoil

Brie said:

I can't tell from what you say if there is any value in the estate. If not simply write to the finance company and say there's no money to pay them.  If the house went to his OH then that can't be considered. 

The only value is the house itself, all paid for. There is no mortgage. 

Though of course, he only owns half of it. OH owns the other half. 

Struckoil

silvercar said:

Sorry for your loss.

if only his partner can sell the house, then the car company won’t be able to force a sale. Hopefully they understand this, but don’t be persuaded to take on the debt, it isn’t your debt it belongs to the estate. If there is no cash in the estate, then either the car company will have to wait or write it off.

Costs of funeral come first from any cash left. 

Any other questions you may have can be placed over here - https://forums.moneysavingexpert.com/categories/deaths-funerals-probate, plenty of experts over there.

Many thanks, that's good news. I was worried I would have to pay it.

There's no cash after the funeral costs unfortunately, so I'll write to them and explain. Will try the other board too. Thank you

macman

They could in theory try and put a charge on the property until the time of sale, but this is not likely unless the shortfall is considerable. Not for a couple of thousand or so.
Why did you think you would have to pay it? You don't inherit your parent's debts: the estate is liable.