[WSBAPT] Vehicle Lease

[Eric Reutter]

I have also encountered this issue in a probate where the decedent passed
away during the term of a car lease. You are right to look to the car lease
contract as the first resource.

Here are a list of educational links I kept as notes when I researched this
issue:

General concept: Death does not terminate car lease obligations

LA Times Story explaining how death does not end a car lease obligation:

http://www.latimes.com/business/la-fi-lazarus-20140321-column.html



Law Blog Discussing what Happens to Lease After Death

https://www.sinclairprosserlaw.com/happens-leased-vehicle-death-2/



How to Break an Auto Lease Because of the Death of a Lessee:

https://www.sapling.com/8646251/break-lease-because-death-lessee



https://www.nytimes.com/2016/10/28/automobiles/let-the-lessee-beware-car-leases-can-be-the-most-binding-of-contracts.html?_r=0

Also, based on my research, I made the following steps for my handling of
the decedent's car lease.

1) Check to see if the  lease comes with an insurance clause covering death

2) Request a written statement of the early termination cost

3) Negotiate

In my case, I was lucky that the leasing company was willing to negotiate.
I do not believe that I had any leverage, however, other than the emotional
component of the situation. If they had not been willing to negotiate, I do
not know that I would have had many options other than to advise the client
to pay the termination costs.

One important aspect that you may already be aware of, however, is that
there is a very specific procedure for how the leasing company values the
vehicle if it is turned in to the company. Whether the car is sold at
auction (i.e. fire sale) or other type of sale can greatly impact the
offset to early penalty fees incurred from terminating the lease. Perhaps
you could at least negotiate as to how the sale of the car is conducted if
it is turned in early (sold at a dealer perhaps rather than at auction, so
as to minimize costs to the estate.

I hope this information helps you.

Best regards,

*Eric Reutter*
*J.D., LL.M. Taxation*
Lake Hills Estate Planning, PLLC
10900 NE 8th Street, Suite 1000
Bellevue, WA 98004
www.lakehillsestateplanning.com
*(425) 298-5895 <(425)%20298-7110>*

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* From: wsbapt-bounces at lists.wsbarppt.com
<wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com
<wsbapt-bounces at lists.wsbarppt.com>>On Behalf Of steve mcconnellSent:
Friday, May 4, 2018 2:44 PMTo: wsbapt at lists.wsbarppt.com
<wsbapt at lists.wsbarppt.com>Subject: [WSBAPT] Vehicle LeaseDecedent passed
away unexpectedly and intestate shortly after leasing a newcar. Lease
agreement provides that death constitutes a default resulting insignificant
penalties return of vehicle notwithstanding. This is asignificant portion
of what is a very modest estate. Heirs are thedecedent's two children and
we'd very much like to maximize their recovery.Any ideas as to how I might
defend against this creditor claim. Thus far nowillingness shown to
compromise.Thanks in advance.Steven M. McConnellAttorney at Law144 Railroad
Ave., Suite 308Edmonds, WA  98020-4100Tel:  (206) 783-0201Fax: (206)
789-5199Email:   *
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