Who owns your car?

[George Selby]

FWIW, remember I'm not a lawyer.  However, my father is a lawyer, and so is 
my stepmother.  I took every law class (lots of contract and commercial law 
in those classes) offered by my university while receiving my BS in 
Finance.  I have also listened to the Bruce Williams radio show for 15 
years or so, he is a veritable fountain of information about all money and 
legal matters (although he, too, is not a lawyer.)  He made my law and 
finance classes easy, as I was familiar with the language from listening to 
him.

Two answers in the space of one here:

At 06:39 AM 10/1/2005, you wrote:
>No, they have it already! If they won't give
>it back to the estate, then it's been "repossessed" in effect - they can't
>*also* expect payments to continue be made. Can they?


The bank has no right to repossess a car that isn't in default, and an 
authorized representative of the estate (the executor) did not turn in the 
car to the bank, so they have no right to sell the car to anyone!

I think I can clear up a misconception here:  when collateral is used to 
secure a debt, if the collateral is repossessed for non-payment, in most 
cases you still owe the outstanding balance remaining after the collateral 
is sold.  In my home state of NC, it gets worse.  Say they repossess your 
car, and sell it for more than you owe.  They get to keep the extra!  But 
if there is a shortfall, you have to make it up.  One way street in favor 
of the debt-holder here.


At 03:00 PM 10/1/2005, you wrote:
>You left out one important point and I know you'll hate me for asking.
>
>What if the deceased died intestate?


The court (typically the probate court) will appoint a personal 
representative, who will dispose of the property according to that states 
intestacy law (which is typically 33 1/3% to the wife, and 66 2/3% to be 
divided amongst the children.)  The personal rep does the things the 
executor of the will would do.  I don't know what happens in between the 
death and the point in time where the personal rep is appointed (like how 
payments would be made out of the decedents bank account.)

On legal thing I can think of here:  If you leave less to your spouse in a 
will than what is allowed for in the intestacy laws of your state, they may 
either be entitled to receive their share under intestacy laws or the 
entire will may be declared invalid.


George Selby