Father passed about 90 days ago in California with no will or trust.

Question Details: He owned very little, a truck and two bank accounts that total $1500 total. He did owe on multiple credit cards, some of which payed off due to death insurance on card. I've read that if the total is less than $100k that we can use an afidavid notorized process at the banks and at dmv, but are we allowed to use the $1500 to pay funeral cost that were occured or does this have to go to the creditors. Also since he owed more than the truck is worth, will the creditors come after the truck?

Asked 9/2/2009 under Wills, Trusts, Probate | 170 View(s) | More Legal Topics

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Oksana Van Rooy, Attorney at Law / Law Offices of Oksana Van Rooy Answered 2 years ago | Contributor with 0 answers This attorney is licensed in California

1. If a debt on the truck is still outstanding, then the creditor will almost surely repossess the vehicle.

2. However, if the truck has been paid off and the current debt is only on the credit cards, then most likely creditors will not go after the vehicle (it largely depends on the amount of debt. Legally, creditors have the right to go after the vehicle but this process is difficult and the credit card or collection companies do not want to waste their additional time and money on such small issue.) Most often, when you notify the credit card company that the creditor is dead, they just close the account and write off the debt in such case as yours.

3. For collection of $1500, go to the bank directly and ask for their form of Affidavit because different banks require different forms (note that you will be able to use the form only if there was no beneficiary stated on the account.) Surely, you can use this money to pay off the funeral expenses, as the funeral expenses are paid before the unsecured creditors are paid  (CA Probate Code Section 11420.) You can find the Probate Code here, if you want: http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=prob&codebody=&hits=20

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