Legal Question in Wills and Trusts in California
My father has passed away in California. There is no will and he does no have enough assets to go through probate. He had substantial debt and there is not enough money to cover the debts.
He has a truck that I have that is paid off (does not run and no pink slip). At what point can I transfer to my name (at what point can a debtor no longer make a claim against it?). The affidavit (reg 5 DMV FORM) to transfer to my name says "that there are no creditors of thr deceased whose claims remain unsatisfied" which there is. My fear is that I sign that/sell it/repair it and I forfeit any more or worse.
Thank you in advance for any help! I have not found an attorney that has been able to answer this yet.
2 Answers from Attorneys
You have to talk to the creditor ans tel them what money and assets exist, along with the debts and the truck, and try to get them to accept in full settlement everything but the truck. Do not make a final settlement with anyone until you have all sign an agreement detailing the sum everyone gets and that it is contingent upon no new creditors appearing. Is the truck really worth keeping? None of the creditor will probably want it or expect anything from its sale.
I'm sorry for your loss. I am assuming that you are the one who is administering your father's estate. If so, you do need to contact any creditors that would not otherwise have knowledge of your father's death. You can negotiate with the creditors for less than the total due to each one. Before speaking to the creditors, however, you should decide how much cash is available for debts. If there are any funeral expenses, those should be paid first. You should disclose the existence of the truck to the creditors, but you should also point out that you haven't established clear title (no pink slip) and that it doesn't run. I agree that its unlikely that a creditor would expect you to sell the truck to pay your father's debts.