Who owns your car?

[George Selby]

At 06:56 PM 9/30/2005, you wrote:
>My position is that the estate owns the car (is in title), and while
>yes, there is a valid lien against it held by the bank (which we are
>not contesting), as long as the payments are kept current, they
>should release the car since they do not own it, the estate does.
>
>Their response was that in *all* car loans, it is the LENDER who owns
>the vehicle, and title does not pass until the loan is paid off.


How's this:  You are both right.  The recently departed is the registered 
owner, and the executor of the estate gets to decide how the car is 
disposed of, following the wishes of the deceased as expressed in a will.

The bank has a lien on and possession of the title, and won't release it 
until the loan is paid off.

Where they are wrong is they don't get to decide how to dispose of the 
vehicle (It could have been left to an heir, who would have to pay off the 
loan or obtain a new one in his or her own name in order to get clean title 
to the vehicle.)

This is a simple car sale, with money owed, and the owner of the car just 
happens to be deceased.  So the executor of the estate advertises the car 
for sale, sells it; and when the executor receives the money, he/she goes 
down to the bank, (which you have already notified to have the title 
present at the local bank branch) pays the remainder of the loan with the 
proceeds of the sale and puts what's left over into the estate general cash 
fund.  The bank hands the executor the title, who gives it to the 
buyer.  The executor gives the buyer a bill of sale until you get 
possession of the title.

The executor needs to reclaim the car from the bank, as they are the one 
with legal right of possession.

The person who turned the car over to the bank had no legal authority to do 
so, once the owner passed away, that privilege goes to the executor of the 
estate.  Now, however, civil action may be required to get it back (This is 
a civil dispute, the bank didn't steal the car, they were handed the keys 
to it.)  They have no legal right to sell it, unless the loan is in 
default.  DO NOT BE A DAY LATE WITH A PAYMENT UNTIL THIS SITUATION IS RESOLVED!

George Selby