Can I donate a car if the estate is insolvent?

[hw993]

What is the name of your state (only U.S. law)? Maryland

Hi everyone,

A small estate was opened as my mother's only asset is a beat up Toyota worth $500 according to MD register of wills. Her estate is insolvevent as she spent her life savings fighting cancer and the portion not covered by insurance are thousands.

I tried to sell the car to pay a creditor but no one wants it as it would costs too much to pass MD inspection. Can I donate the car to a charity? Or must I sell it even for scrap value even if I get only $50? I don't want to be liable for disposing of an asset.

Finally do I need to transfer the title to my name? I have the Letters of Adminstration showing ai am the personal rep. Thank you.

Howard

 

[Ohiogal]

What is the name of your state (only U.S. law)? Maryland

Hi everyone,

A small estate was opened as my mother's only asset is a beat up Toyota worth $500 according to MD register of wills. Her estate is insolvevent as she spent her life savings fighting cancer and the portion not covered by insurance are thousands.

I tried to sell the car to pay a creditor but no one wants it as it would costs too much to pass MD inspection. Can I donate the car to a charity? Or must I sell it even for scrap value even if I get only $50? I don't want to be liable for disposing of an asset.

Finally do I need to transfer the title to my name? I have the Letters of Adminstration showing ai am the personal rep. Thank you.

Howard

Get permission from the probate court before you donate it.

 

[commentator]

It is possible to transfer the title and donate the car even if you do not have it put in your name first. I suspect the agency you are donating it to will be able to help you do this, as I suspect you are not the first person in this situation. The county clerk's office in your county of residence can help you. The probate officer can help you.

 

[justalayman]

Do not transfer it into your name unless you intend on purchasing the car from the estate. Putting it into your name could cause you all sorts of grief.

Either do as ohiogal stated or sell it for scrap (as the pr, not as yourself) use the proceeds as allowed or directed. Often times funeral expenses have priority status regarding debts so if you paid out of your pocket (or anybody else did) for her funeral costs, check to determine if the proceeds can used to reimburse whoever made such payments.

 

[latigo]

It is possible to transfer the title and donate the car even if you do not have it put in your name first. I suspect the agency you are donating it to will be able to help you do this, as I suspect you are not the first person in this situation. The county clerk's office in your county of residence can help you. The probate officer can help you.

Hmm?

Sure, the county clerk office employees can be of help. Helpful by telling the OP that THEY ARE NOT PERMITTED TO GIVE LEGAL ADVICE!

Also, just curious, but where did you come up with the title “probate officer”?

Lastly, if you know that it is ”possible” to transfer ownership of the vehicle without the title passing through the OP as administrator of the decedent's estate, what is preventing you from explaining the process rather than having the OP inquire of the agency to whom he would like to donate it.

An unknown agency whom you only "suspect" as being acquainted with the process.

 

[commentator]

I have found that a good many people in the world are, for some reason, hesitant to ask questions at the agencies that can be of help to them before they already know the answers they need. Why would it be necessary for us on a message board to give very specific advice that may or not be relevant?

Why would it be necessary for the person who is asking the questions to go in with all the answers in hand and tell them how it is supposed to be done? In the days when I worked in government programs, I found this type of client to be very hard to deal with. The information they had received from other sources such as internet forums was not necessarily correct or helpful.

In my experience, what I said was correct. It is possible. There is a very specific format to follow. When, in similar circumstances, we did this very thing, the donation of the car, the information and form necessary was provided to us by the county clerk's office. Transferring ownership of a vehicle is not legal advice, it is what they do. The agency we were donating it to knew exactly how we should proceed. They had done this before many times. The local office that deals with probate is general quite helpful in my experience. They are elected officials, and would like to continue to be elected, therefore they tend to be helpful to people who are genuinely seeking guidance about how to handle very small estates without the assistance of an attorney.

 

[tranquility]

I have found that a good many people in the world are, for some reason, hesitant to ask questions at the agencies that can be of help to them before they already know the answers they need. Why would it be necessary for us on a message board to give very specific advice that may or not be relevant?

Why would it be necessary for the person who is asking the questions to go in with all the answers in hand and tell them how it is supposed to be done? In the days when I worked in government programs, I found this type of client to be very hard to deal with. The information they had received from other sources such as internet forums was not necessarily correct or helpful.

In my experience, what I said was correct. It is possible. There is a very specific format to follow. When, in similar circumstances, we did this very thing, the donation of the car, the information and form necessary was provided to us by the county clerk's office. Transferring ownership of a vehicle is not legal advice, it is what they do. The agency we were donating it to knew exactly how we should proceed. They had done this before many times. The local office that deals with probate is general quite helpful in my experience. They are elected officials, and would like to continue to be elected, therefore they tend to be helpful to people who are genuinely seeking guidance about how to handle very small estates without the assistance of an attorney.

ce and it is an error to ask a clerk how to do something when the real question is if one should do it.
HOW to do it:
http://www.mva.maryland.gov/Resources/VR-151.pdf

But, the real question is, will the OP on the line for the estate's debts if she transfers the vehicle? THAT is the legal advice here.

 

[hw993]

Thank you everyone for your replies. I called the register of wills and asked would it be ok to donate. He said most likely the creditors would not be happy that assets were being transferred without compensation to them.

As far as selling the car and signing the title I asked if I needed to transfer to my name. First person I called said I had to put it in my name. Second person I spoke with later said I had to call and ask motor vehicle.

I will follow justalayman's advice and not transfer ownership. l'll show any buyer the death certificate and letters of admin.

I paid for funeral expenses from my own money.

I saw a commercial for webuyanycar.com and according to their website the car is worth $435.00. Thank you.

Howard