TERMINATION OF DECEDANT'S AUTO LEASE

By Larry A. Weingarden posted 11-10-2017 10:02

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Wondering if anyone has encountered a problem like this one and how you resolved the problem. Decedent passed away in September of this year and has an auto-lease with Ford Motor Credit that has a year remaining on its term. What, if anything, can be done to allow the estate to terminate the lease without significant expense to the estate. Any suggestions will be greatly appreciated.

Larry Weingarden

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David G. Kovac

11-16-2017 15:50

Larry, we are settling an estate with the same issue. We have been in communication with Ford Credit and have been informed that there several options available:

1. You can have a third party take over the lease provided certain requirements are met, including having the third party sign a new financing agreement and meeting credit requirements. You can have the necessary paperwork sent to you. Lease payments must be current in order to choose this option.

2. You can return the vehicle which would be considered a contract default. The car would then be sold at auction and proceeds applied to the account payoff. Any deficiency would be the responsibility of the estate and the financial services company would file a claim.

I would contact Ford Credit and begin a dialogue with a representative. Once they have a copy of the death certificate your LOA they are very helpful.

David Kovac
Miller Canfield

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