Car finance after deceased

Keep_pedalling

So you could sell the car and pay off outstanding finance on it. This is something you could do via Motorway. I suggest them because they will actually come and collect the car so no need to tax and insure it they can also pay off the finance company directly.

What other debts did he have?

Ryd3r88

https://forums.moneysavingexpert.com/discussion/comment/81960074#Comment_81960074

I was thinking motorway as their “estimate” seemed positive. From what we can find out so far what is call trivial debt…. A few BNPL only equating roughly £1.5K, maybe 2 credit cards not sure apart from that but don’t know the true values until we present the DC which turned up yesterday.

Just read a lot online about insolvent estate etc but I’m not sure how things would work if we have enough in his accounts to pay off the “trivial” but can’t afford the car! Also we need money for funeral in first instance so that’s a chunk out of whatever pot we have

Savvy_Sue

https://forums.moneysavingexpert.com/discussion/comment/81728439#Comment_81728439

My understanding - and someone will correct me if I'm wrong - is that the estate is insolvent if you cannot pay ALL the debts. And in that situation you do not need to (and probably should not) attempt to administer the estate. The advice above seems the best (as given to the original poster), because what you definitely don't want to do is 'intermeddle' - pay some debts and not others. (That doesn't include the funeral costs which have first call on the estate.)

You say basically the same to all his other debtors. If one of them then wants to administer the estate to try to recover something, they're welcome to do so.

Ryd3r88

https://forums.moneysavingexpert.com/discussion/comment/81960333#Comment_81960333

so what does that actually mean if “they” push to administer the estate?

RAS

"They" can't force anyone else to administer an estate. "They" can choose to administer an insolvent estate if "they" want to. Has no implications for you.

In this instance, they can collect the car and thereafter what they do matters not a jot for any other family member. Just make sure everyone knows and no-one accidently makes themselves liable.

You mention there is no mortgage? Is there a property? If so, held as tenants in common or as a joint tenancy?

Keep_pedalling

One option is just to inform his creditors that the estate is insolvent and that no one is administrating the estate. The car finance company will then simply reposes the car. The other creditors wil simply write off the debt.

One thing that puzzles me is how on earth did he manage to finance a high end motor? Having no savings at that time of life would suggest he did not have the income to manage such a bid loan.

Ryd3r88

that’s the other issue, we cannot locate the deeds to the property. We have reached out to previous mortgage lenders etc. there is a photocopy of the previous owners deeds and mortgage statements dating back to 1983……

He was only 69 with no diagnosed health concerns and unexpectedly passed way 3 weeks ago. He had 2 small part-time/zero hour jobs, state pension, 2x private pensions that we are aware of. Once the bank grants access to his accounts upon receipt of the DC we will know more….. but at this current point in time we are unaware of any large sums of monies.

Ryd3r88

@RAS Following on from previous post all documentation, letters and mortgage statements are all in both names but we have no idea where the deeds are or who they are kept with. Nothing on Land Registry as nothing has been done with the property since purchase in 1983…. So that’s another issue that myself especially is concerned about. What does this mean for my mother? Thanks

RAS

Sounds like no will has been found?

Regarding the deeds, I'd double check the mortgage provider. It wasn't uncommon to either leave £1 unpaid and leave the deeds with the provider or to otherwise arrange to leave the deeds with them.

I'd also contact a good local solicitor's office, one with whom either of your parents did business and ask if they can put out an alert. If the deeds aren't with the provider, they may have been stored with his/their solicitor, possibly with a will. In the last 20.years, both mortgage providers and legal firms are much more likely to have ceased trading and been amalgamated into other providers than I think was the case previously. Local firms are used to checking if they have any files related to previous companies and possible clients.

The other basic is to whom are the mortgage statements addressed? If they are addressed to mum and dad, then they had some form of joint tenancy. If they are just addressed to dad, the deeds are in his sole name.

Ryd3r88

https://forums.moneysavingexpert.com/discussion/comment/81960510#Comment_81960510

Yes no will as they hadn’t got round to sorting one due to being in “fit health” but obviously there was more going on that he didn’t know about.

The mortgage statements and letters are all addressed to both even the original solicitor correspondence. I’ve reached out to a couple of local firms and also the banks. So far turning up nothing but will have to wait and see.