Q: Mom recently passed with manufacture home worth 45,000 and a car with lien. No other debt. Can we avoid probate?
Mom has manufactured home in a park owes about 8,000 on it and the value is about 45,000. The car is worth just about what she owes 19,000 with no co-signer. Her bank account is joint with one of my siblings. She has no other debt. From what we have read there would be no probate. We can voluntarily surrender the car back to the bank. Intend on paying off the loan on the manufactured home and then all siblings signing off and selling it. Is there something we are not seeing? Will there be issues with the voluntary surrender?
A:
If the value of ALL vehicles is less than $60,000 and there is no probate, then the title(s) can be transferred at the secretary of state with the appropriate affidavit and death certificate.
The 'wrinkle' is that a creditor may petition to open probate to settle any deficiency, and part of the secretary of state transfer process is to make a statement under oath that there will be no Probate filed. You can't do that unless and until the creditors all agree they won't file Probate. In writing. I virtually guarantee that even if you surrender the vehicle there will be a 'deficiency' and the bank/credit lender will try to go after that.
I'd urge you to go slow, and see what you can get as to 'guarantees' from the lender. If the lender realizes there is a mobile home with significant equity it may well push this to get every last penny. Your position is risky. It may be appropriate to engage the services of a local probate attorney to review and determine if it might make some sense to preemptively file for probate even though it 'may not be necessary'. The COST to file probate ($150 filing fee plus about $220 for the 'inventory fee on a 45k estate) may well be worth it given the risk. Seek local legal advice from a licensed attorney!
-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.
I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
