Transfer of Car Loan

[Ravens2631]

My father passed away leaving behind a car loan. To prevent the car loan from falling back on my mom, I notified the bank and provided them a death certificate. However, they will not allow me to refinance the loan in my name. I have spoken to representatives at the bank as well as the bank’s probate department. All saying the same thing, they cannot tell me anything about the loan without a will or small estate affidavit.

My father passed away suddenly, and relatively young, so he did not have a will. I doubt his estate has gone through probate as my mom has not tried to figure anything out. Because of this I am hesitant to get a small estate affidavit.

The bank’s probate department did advise I speak to the dealership the car was purchased from. They said it is possible they will disclose that there was a credit life insurance policy on the vehicle.

I should also mention, I asked my mom to call the same bank and see if they would tell her anything, as my parents were married. The bank says they cannot. They only sent a letter saying she was not responsible for the loan. I have also ruled out a co-signer on the loan as well, there are none. It would have been my mom or my dad’s mom and they confirmed they did not.

I’m at the point where I need to decide whether to keep paying on this loan or give up since I am not getting any answers

 

[adjusterjack]

My guess is that your father had the car loan just in his own name. My sister-in-law went through the same thing when my brother died. He had a line of credit in his own name. The bank wouldn't give her the time of day without the court papers appointing her representative of his estate.

Somebody will need to keep making the payment or the car will be repo'd, sold for less than is owed, and the estate will have a creditor coming after it for a large bill that will have to be paid before anybody shares in the estate's assets.

There's no reason you can't get the small estate affidavit for yourself if your Mom's not up to it and doesn't object.

I encourage you to do that.

 

[justalayman]

Since you didn’t name the state your father lived in, there is no way to check the limits of a small estate process. Have you verified a small estate process is even possible with your father’s estate?

 

[Ravens2631]

I am in Wisconsin and I have considered the small estate affidavit. When I look at the form it seems to me it is for the whole estate, if it was less than $50,000. But I am not looking to do that. Also, would the house he has and other car loan be included?

 

[Zigner]

I am in Wisconsin and I have considered the small estate affidavit. When I look at the form it seems to me it is for the whole estate, if it was less than $50,000. But I am not looking to do that. Also, would the house he has and other car loan be included?

Why are you not looking in to doing that? Your father's estate NEEDS to be handled in some fashion. To NOT do so is only setting up possible problems decades down the road.

 

[Ravens2631]

I understand that. But I’m not looking to have everything in my name. Most of

Why are you not looking in to doing that? Your father's estate NEEDS to be handled in some fashion. To NOT do so is only setting up possible problems decades down the road.

i am not looking to do that because my mom is in the middle of figuring out the house totally so she can sell it/which I assume will lead to some kind of probate..? I’m only trying to figure out the car part.

I understand the estate needs to be handled.

 

[Zigner]

I understand that. But I’m not looking to have everything in my name. Most of

i am not looking to do that because my mom is in the middle of figuring out the house totally so she can sell it/which I assume will lead to some kind of probate..? I’m only trying to figure out the car part.

I understand the estate needs to be handled.

The car is part of the estate. Mom (or somebody) needs to deal with the estate as a whole.

 

[LdiJ]

I understand that. But I’m not looking to have everything in my name. Most of

i am not looking to do that because my mom is in the middle of figuring out the house totally so she can sell it/which I assume will lead to some kind of probate..? I’m only trying to figure out the car part.

I understand the estate needs to be handled.

You cannot handle each asset by itself, you have to handle the entire estate at all at once.

 

[justalayman]

Why are you trying to figure out what to do with the car? The tenor of your post suggests you are driving it or wish to end up owning it.

Unless somebody opens probate and deals with the estate, nobody will be driving the car very long. The bank will likely repossess it.

If you want to buy it once your mother opens probate, you can offer to buy it from the estate.

Depending on how title to the house was held, your mother may be able to sell the house without probate being involved. If held as joint tenants with rights of survivorship or as tenants by the entirety (if available in Wisconsin), title to the property would pass outside of probate.