caravan gifted to me 4yrs ago has HP owing, owner deceased, executor wants it back - help.

[RumpleStiltskin21]

I was given a lovely present just over four years ago.  Sadly the person who gave it to me died recently.

 

His sibling, (who I'd never met until the funeral) is executor and is demanding the present back. 

 

I didn't know it was purchased on finance, but apparently there is a year left of a five year HP agreement on the gift. 

 

The gift is registered in my name (its not bricks and mortar) and has been insured and cared for by me since receiving it. 

 

The sibling says because of the outstanding HP, he has to return it to the finance company or pay the last year of the finance, so I have to hand it back to him. 

 

I thought executors had to settle any outstanding finance as part of sorting out the estate? 

 

Or does the gift in question actually belong to the finance company and I never owned it?  

 

 Is the gift not actually part of my friend's estate at all because he gave it (and registered it) to me?

 

[dx100uk]

I will guess this is a car?

 

If it's on HP then it belongs to the finance company  .

 

It was not the deceased property to gift it away .

 

However if the finance were to be settled, then the gifting would probably stand as it's it been 4 yes and never been contested , a verbal agreement is a good as a written contract in a court of law .

 

The executor of the will is wrong to simply demand it back under the guise of its on HP in the deceased name 

 

Dx

[BazzaS]

If it is a vehicle, you’ll note that the V5 states that the registration shows proof of Registered Keeper, rather than proof of ownership

[RumpleStiltskin21]

It's a nine year old caravan.

I don't think I would have accepted it if I'd known it was bought on HP.

 

Is it still mine if there is a year's payments due on it?

Or should the executor pay the last of the debt off? 

 

Executor is trying to tell me that they personally can't afford to pay the last of the debt, so the caravan has to be sold to settle the finance. 

 

I thought if there isn't enough money in the estate, the rest is written off?  

 

[dx100uk]

the fact if you had known HP existed you wouldn't have accepted the gift is immaterial sadly, legally it was not his to gift it to you.

An executor cannot be held PERSONALLY liable to pay any debt subject to settling of a deceased estate.

if the deceased estate does not have the funds to pay, then, yes, the debts dies with the deceased. 

 HOWEVER..

many many executors needlessly pay all manner of the deceased debts without exercising their required due diligence in law, if a creditor does not contact the executor within the notice period that's tough luck on them, IMHO the executor should not go out of their way to contact perceived creditors.

you might be able to help him help you here, anything like consumer credit, loans, hp, cards, etc etc should not just be blindly paid!

the executor should, if contacted by a creditor, reply with a CCA request, making them, in law, prove they have a signed agreement by the deceased in their possession, to become able to make a claim that needs settling against the estate.

do you know if the exec has made contact with the HP company?

dx

 

 

 

[honeybee13]

The other complication for the executor could be that this gift was made less than seven years before the person's death, so may need to be declared unless it comes under one of the exemptions.

 

How Inheritance Tax works: thresholds, rules and allowances: Rules on giving gifts - GOV.UK

WWW.GOV.UK

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Inheritance Tax (IHT) is paid when a person's estate is worth more than £325,000 when they die - exemptions, passing on property. Sometimes...

HB