Car note in deceased name

[cedriso]

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

My grandfather bought a car for me in 2008, financed in his name, and I make the payments. He recently passed away, and Wells fargo dealer services wants me to return the vehicle. I have asked if they can transfer the note to my name and was told "NO". I don't believe there is any money in the Estate, my uncle is the executor of the estate. My question is....If there is money in my grandfathers estate, will it automatically be put to pay off the debts including the car note?? Or is it up to my Uncle to use the estate money to pay off the car??

 

[justalayman]

whose name is on the title?

 

[Zigner]

It's not your car. I would recommend that you return it and buy a car of your own.

 

[OHRoadwarrior]

Talk to your uncle. Any recourse you have will be through him, if he is the court appointed executor.

 

[sandyclaus]

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

My grandfather bought a car for me in 2008, financed in his name, and I make the payments. He recently passed away, and Wells fargo dealer services wants me to return the vehicle. I have asked if they can transfer the note to my name and was told "NO". I don't believe there is any money in the Estate, my uncle is the executor of the estate. My question is....If there is money in my grandfathers estate, will it automatically be put to pay off the debts including the car note?? Or is it up to my Uncle to use the estate money to pay off the car??

If the car is titled in your grandfather's name, then it became the property of the estate upon his passing (subject, of course, to the lien placed upon it by the bank). Any money in your grandfather's estate will be used to pay off his debts by your uncle, the executor. I'm unsure how he decides WHICH debts get paid first over others, but it seems to me that your uncle has decided NOT to use the money to pay for the car - as evidenced by the bank saying they want the car back.

If the vehicle isn't yet paid off, and if there is no money in the estate to pay it off, then you are pretty much losing that car. Either it gets returned to the bank voluntarily, or they are going to come and repossess it from you.

 

[OHRoadwarrior]

If the car is titled in your grandfather's name, then it became the property of the estate upon his passing (subject, of course, to the lien placed upon it by the bank). Any money in your grandfather's estate will be used to pay off his debts by your uncle, the executor. I'm unsure how he decides WHICH debts get paid first over others, but it seems to me that your uncle has decided NOT to use the money to pay for the car - as evidenced by the bank saying they want the car back.

If the vehicle isn't yet paid off, and if there is no money in the estate to pay it off, then you are pretty much losing that car. Either it gets returned to the bank voluntarily, or they are going to come and repossess it from you.

Not quite Sandy. The vehicle is likely at or near a negative equity situation. The executor would be within his right to transfer/sell the vehicle at break even (if that is loan balance) or a loss (at loan balance) to OP. OP would need to pay cash or obtain his own financing. As the transfer would be within the family, it should transfer with no gift taxes. The executor would need to coordinate the release of title with the lender. Only if the vehicle has equity in it, should a burden to pay outstanding debt beyond the loan be created. The reasoning is the debt is specifically tied to the vehicle, not just the estate in general.

 

[Zigner]

Not quite Sandy. The vehicle is likely at or near a negative equity situation. The executor would be within his right to transfer/sell the vehicle at break even (if that is loan balance) or a loss (at loan balance) to OP. OP would need to pay cash or obtain his own financing. As the transfer would be within the family, it should transfer with no gift taxes. The executor would need to coordinate the release of title with the lender. Only if the vehicle has equity in it, should a burden to pay outstanding debt beyond the loan be created. The reasoning is the debt is specifically tied to the vehicle, not just the estate in general.

The estate is required to "make good" on the loan. If the executor sold/transferred the vehicle for less than the amount of the loan, then the executor will have breached his fiduciary duties.

 

[LdiJ]

The estate is required to "make good" on the loan. If the executor sold/transferred the vehicle for less than the amount of the loan, then the executor will have breached his fiduciary duties.

I don't believe that is what is being suggested. I think that what is being suggested is that there probably is no equity in the car (the loan balance is likely higher than the blue book). Therefore if the OP buys the car for the remaining loan balance, then everybody should be happy. The estate would then have the cash to pay off the loan.

 

[Zigner]

I don't believe that is what is being suggested. I think that what is being suggested is that there probably is no equity in the car (the loan balance is likely higher than the blue book). Therefore if the OP buys the car for the remaining loan balance, then everybody should be happy. The estate would then have the cash to pay off the loan.

Then I would agree.