Can the creditors go after you for buying from estate sale?

A distant relevative of mines passed away a few months ago and I understand they have a car that was seldom used. Its ten years old with 7 thousand miles on it.

They were unsure of the price other than what KBB says and they seem hard set against selling it to me.

THey say since I am somewhat related and this person died deep in debt they will come after me for money for this persons bills.

Can they sell me the car without too much hassle? Who sets the price or should be a guide? Can the bill collectors come after me for his debt?

Seems he died before his health insurance was processed and since he died after the bills, its null and void on covering him.

Only if there is clear evidence of colusion to remove the vehicle from the estate. If everything is legit, then the only thing they can go after are the proceeds from the sale which is an asset of the estate. Though realistically, this is something that should be discussed with the executor of the estate and their counsel.

cobb said:

THey say since I am somewhat related and this person died deep in debt they will come after me for money for this persons bills.

Can they sell me the car without too much hassle? Who sets the price or should be a guide? Can the bill collectors come after me for his debt?

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From what I understand there is no executor of the estate because that person would supposely take on his debt, at least what I was told. I asked about that.

don't know what the laws in your state is , but a phone call to an attorney may be in order.

assuming title is free and clear. issue would be who has authority to sign document.

a vehicle with such low miles would be a prize and worth chasing down.

No, the executor of an estate is not personally responsible for the debts of the estate! The executor is responsible for parcelling out the assets of the estate in a fair and legal fashion. If the estate had more assets than debts, then some the assets are liquidated to pay the debts, and the excess is distributed according to the will, or according to the relevant state law. If the assets are insufficient to cover the debts, they are liquidated and divided up according to the requirements of the law - I believe essentially equally - if the estate owes twice as much as the assets bring, all of the creditors get 50 cents on the dollar, and that is all.

I am not a lawyer, but if you paid the estate fair market value for the car, there is no reason for the estate not to sell it to you, and no way for any creditor to come after you for any debts of the estate, though some sleazy creditors might well try. Check out the good folks at Nolo Press - http://www.nolo.com/ for more information.

The executor simply handles the debt from the estate and doesn't assume any themselves. All debts will be paid from the estate. You are not responsible for their debt .

cobb said:

Seems he died before his health insurance was processed and since he died after the bills, its null and void on covering him.

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This doesn't sound right and should be looked into further. If he was covered by insurance (paid his premium) while he was alive, any treatment he received should be covered. Or am I misunderstanding what you said?

I am not an attorney, but I have been the executor of two estates.

You need to deal with the executor. "They" don't have any say in the matter. From what you stated in your post, "they" don't seem to have a clue.

The executor makes all decisions, hopefully with the advice of an attorney (executor may be an attorney), regarding the estate. The executor will answer all your questions. I suggest writing a letter to the executor. Ask that he/she respond in writing. There is less chance of any misunderstanding, with a letter.

If your distant relative died without a will, usually an executor is appointed by a court. That executor is legally responsible for all matters, concerning the estate.

The executor isn't personally, and/or financially, responsible for the estates debts.

The health insurance, if the policy was paid up to date, will pay it's portion of all of the medical expenses.

The executor must to pay all of the estates debts, funeral expenses, medical expenses, and taxes (personal income taxes, estate taxes, estate income taxes), etc., first. There are usually attorney and accountant fees too. Plus court fees, for filing the estate. Then, there is the executor's fee, if any. All expenses incurred by the executor, in the performance of his/her duties, will be paid by the estate. If there is anything left, it will be distributed by the executor.

I don't know how the proceeds would be distributed. I wonder if the court would have to approve how the proceeds are distributed, since there wasn't a will? The whole process can take several years.


PLEASE, remember that I am not an attorney, and any advice I give, is worth less than what you paid for it.

oldgrandpajack

If the asset was expected to be used to pay off the debt, and the executor sells it, whatever money was received would be expected to be paid towards the debt. If it was a collector's item that was appraised at a high value, selling it low would be unwise, as there might be a claim on it as an asset. Getting the most money for the asset to pay off debts is the highest priority for whoever's down the line.

Usually the blue book value is searchable online, and cars do depreciate...

Yeah, he was uptodate, etc. Supposely since he died before the procedures were approved, they wont cover it. They were performing surgery and stuff to keep him alive and it didnt work.

nikon said:

This doesn't sound right and should be looked into further. If he was covered by insurance (paid his premium) while he was alive, any treatment he received should be covered. Or am I misunderstanding what you said?

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Man, this sounds like a nice mess maybe to not get myself involved in. The family is rather split from each other and none seem in any hurry to clear things up. I just thought this would be a good chance to get some newer wheels.

I will run this unoffical info by them and just use my spider and bs sense.