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  1. #1
    Join Date
    Mar 2015
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    11

    Default Help

    My question involves estate proceedings in the state of: Kentucky. My mother passed intestate. I filed a Petition to Dispense With Administration, with waivers from my siblings and her surviving spouse, it was approved by the court. She owned no real estate. She held sole title to one vehicle and had a motorized power chair, these were her only possessions of value and were listed on my Petition and valued at approximately 12000 dollars. My intent was to sell them and use the proceeds to pay toward outstanding debt she had.I have now found that she held title to a second vehicle that is valued at approximately 4500 dollars, this vehicle was used as collateral for a personal loan and a local bank holds the lien, the balance remaing on the loan is approximately 7500 dollars. What do I do since this vehicle was not listed on my petition?

  2. #2
    Join Date
    Mar 2013
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    17,043

    Default Re: Help

    You'll probably need to file an amended petition. If you are over the $15,000 for small estates, you'll have to do regular probate.

    It's up to you if you want to skate and avoid the amendment.

    But there's no doubt that you'll have to pay the secured loan first or the lender will take the car and sue the estate (and possibly you) for the balance.

    Once you pay it off, you can sell both cars and the chair and prorate the money among the remaining creditors.

  3. #3
    Join Date
    Jan 2006
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    38,714

    Default Re: Help

    What is the value of the car? Less than the debt, contact the lien holder and inform them of the situation and let them repossess the car if they choose to.

    If the value is greater than the loan, consider the cost to reopen the administration and if it is worth it to attempt to gain whatever positive value the asset has. Of course if there were debts left unpaid they should be paid for the proceeds.

  4. #4
    Join Date
    Mar 2015
    Posts
    11

    Default Re: Help

    So what is the process for filing and amended Petition?

  5. #5
    Join Date
    Jan 2006
    Posts
    38,714

    Default Re: Help

    Quote Quoting jk
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    What is the value of the car? Less than the debt, contact the lien holder and inform them of the situation and let them repossess the car if they choose to.

    If the value is greater than the loan, consider the cost to reopen the administration and if it is worth it to attempt to gain whatever positive value the asset has. Of course if there were debts left unpaid they should be paid for the proceeds.

    I guess if I could read I would know the debt to value issue.

    Call the lien holder and ask them if they will be picking up the car or do you need to deliver it to them. Since the debt is much greater than the value there is nothing to benefit by proceeding it through the administration process.

    Your only problem is what happens if they won’t take it. Since the estate owes the debt and not any living individual, your options are limited. If it comes to that, post back.

  6. #6
    Join Date
    Oct 2006
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    15,497

    Default Re: Help

    Quote Quoting jk
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    I guess if I could read I would know the debt to value issue.

    Call the lien holder and ask them if they will be picking up the car or do you need to deliver it to them. Since the debt is much greater than the value there is nothing to benefit by proceeding it through the administration process.


    Your only problem is what happens if they won’t take it. Since the estate owes the debt and not any living individual, your options are limited. If it comes to that, post back.
    That is what a friend did when his sister passed away. Both her home and car were underwater when she died and he just let the bank foreclose and the car be repossessed. In her case there were no assets that could be sold for any value, so the creditors got nothing, but if there had been, the assets would have been used to pay the creditors what they could.

    This is what

  7. #7
    Join Date
    Mar 2015
    Posts
    11

    Default Re: Help

    The Petition to Despense With Administration gave me legal possession of the van and chair, I can sell those to pay toward any debt. Since the car isnt listed who has the right to deal with the bank regarding the issue? My biggest concern is that the car is an asset in her name that is not listed on the Petition. I dont want to get into in trouble legally for failing to list this asset on the Petition. I dont want to sell anything until I am sure of where I stand on that point.The taxable value of the car would put the estate value at about 16000 to 16500, this is above the 15000 dollar value the statute sets. Thanks for all the help so far.

  8. #8
    Join Date
    Oct 2006
    Posts
    15,497

    Default Re: Help

    Quote Quoting jbe11962
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    The Petition to Despense With Administration gave me legal possession of the van and chair, I can sell those to pay toward any debt. Since the car isnt listed who has the right to deal with the bank regarding the issue? My biggest concern is that the car is an asset in her name that is not listed on the Petition. I dont want to get into in trouble legally for failing to list this asset on the Petition. I dont want to sell anything until I am sure of where I stand on that point.The taxable value of the car would put the estate value at about 16000 to 16500, this is above the 15000 dollar value the statute sets. Thanks for all the help so far.
    Its under water so its not an asset, its a liability. There is no equity so there is no asset. Only the equity would have been an asset. Inform the creditor that she has died and they need to repossess the car. Provide a death certificate if they need one.

  9. #9
    Join Date
    Dec 2008
    Posts
    623

    Default Re: Help

    A surviving spouse was mentioned in the original post, would any of this come back to fall on the spouse?

  10. #10
    Join Date
    Oct 2006
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    Quote Quoting yyz0
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    A surviving spouse was mentioned in the original post, would any of this come back to fall on the spouse?
    The OP stated that the debt was solely in the deceased name, and since KY is not a community property state, it should not effect the surviving spouse. It would only effect the estate.

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