Honda Leasee passed away - What to do with equity

You will have to turn in and walk away. You can’t sell it

Condolences on the loss. You need to find a dealer group with a Honda dealership in its group which has the ability to buy HFS leases. Some brokers on here can assist as well

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I thought I had found that but they keep telling me they need documentation from HFS that says they can buy it. When I call Honda they just completely disregard what I am saying and tell me turn it in.

Sorry about your dad.

Did he die intestate (without a will, trust, etc.)? If so, did someone open a probate/estate action in court? If they did, the equity may be an “asset” of his estate even though HFS owns the car? Would it be the same if he had a will that needed to be run through a probate/estate action?

If he died with a trust (no probate/estate action usually through court), perhaps the equity is part of the trust property even though HFS owns the car?

The above is not legal advice, but just questions that you would need to run past a local estate/probate/trusts attorney in your jurisdiction to see if you have any way to recoup that equity as a non-signatory to the lease as an heir to the estate or trust beneficiary.

Which is true, you have to turn it in unless you can get your lawyer involved

Sorry for your loss. You need to call honda and transfer the lease I guess - to be fair your attorney is very knowledgeable, so this might be wrong - but you usually have to call an FS to inform them to have it transferred.

This information may have changed since 2017, but it is a good starting point to try and resolve this affair. Most FS’ that usually don’t allow transfers make exceptions to that policy for the leasee’s death. In this case, I guess transferring to you, then you selling through the aforementioned dealer or brokers would be the best way to utilize that equity.

What?

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Sounds like you got an intern for an attorney. That is true for a 100% clear car but not true in other situations.

Although OP is heir to the estate, I don’t see how it just “automatically” transfers. Seems like someone would physically have to start that transfer process.

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Big red flag regarding the competence of the attorney

Maybe attorney didn’t mean that literally.

When my lawer drew up the docs for my estate there was a title transfter form filled out for the vehicle and noterized. Having that may help ifyou can find it in the estate paperwork. If you cannout just transfter the lease over to sell (as the people with knoledge are saying)-- is it possible to buy it out from Honda? At that point you would have a title to use.

That is always possible. Honda doesn’t want the car back, but legally it’s theirs so the title doesn’t automatically transfer to OP.

Otherwise OP’s father is transferring DEBT to OP automatically and that doesn’t fly in most cases.

I’m thinking if the car is paid off- Honda sends the title. OP being the execuator can then transfer the title to anyone (in theory). There may not be enough $$ for the hasle, but it is an option.

Yes as I said, Honda can help with that as they don’t want the car. Transfer upon death / buyout are always possible. But Auto Transfer? Nah. Bank Accounts or other things with beneficiaries are ‘auto transfered’ but liabilities? no.

I think that’s part of the problem right now, though. The car cannot be sold b/c the leasee has passed away, and, at least w/ HFS, it’s not clear if there is a protocol that kicks in after that to sign the lease to someone else.

IANAL, but does it make a difference if the leaseholder is a trust (vs. the individual)?

Wow, they will lease to a Trust? (No cosigner) That’s gotta be some kind of loophole there.

No idea. Just wondering if that was perhaps why the attorney made the comment about everything flowing to the OP?

100% this. As it was explained to me, when my dad passed I could basically turn the lease in and the estate would get charged the early turn-in fee or I could continue the term which is what I have done.

The lease docs make no reference to what happens when a person dies, nor can anyone at HFS articulate the policy. The lease ends in 60 days and it is in great shape with very low miles. The pay of is 16,800 but I have offers of 22k. I can see if Honda will transfer the lease to me, but I am doubtful they will or can execute it before the lease term is over.

I was in the process with a large dealer group trying to buy a Toyota, and since they also have a Honda dealership they said they could easily buy it out. Now flash forward to my truck has arrived and now they arent sure if they can or want to move forward.

It would seem incongruent that they will allow to continue to make payments, but not tap the equity of the car.

How come?

Does that same large dealer group also have a Honda dealership? If so, could they buy the HR-V and apply any equity toward your Toyota?

Apparently, other people have run into the same issue. :frowning:

https://www.reddit.com/r/askcarsales/comments/n2r0sa/honda_financial_deceased_lessee_question/