Legal Question in Wills and Trusts in California
Automobile lease of deceased
My brother-in-law passed away a few days ago in California (Los Angeles County). All of his assets were jointly owned by he and his wife (real property, bank accounts, etc...), and all of his retirement accounts and insurances have her documented as beneficiary. There is not a will.
He had entered into an automobile lease about 6 months prior to his death. Neither his wife's name nor signature are on the lease. There is no clause within the lease that specifically deals with the death of the leaseholder. His wife has contacted the leasing company about them taking the car back and she has been told that her only options are to either buy the vehicle (price given is $8,000 over sticker of the vehicle when new), or to buy out the remaining term on the lease, plus a cancellation fee.
The next lease payment is due within about one week.
Is the wife responsible for continuing or buying out a lease on a vehicle in which she had no part of originating? Since there are no assets to go into an ''estate'', does this affect how she can or should handle this issue.
Thank you.
1 Answer from Attorneys
Re: Automobile lease of deceased
You did not specify whether you want the legal answer or the realistic answer to this question?
1. Legal Answer: Your mother has a legal obligation to pay your dad's creditors before taking or using the assets of his estate.
2. Realistic Answer: In order to collect the assets from your mother, the creditor would have to file a probate action, which is unlikely.
If you were to effectively hold the creditor at bay its time to file would expire. Neither you nor your mom should talk to the creditor any more. Instead, you should hire an attorney to deal with the creditor.
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