Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
When an estate administrator in Indiana pays off a decedent’s vehicle loan, it’s critical to confirm full satisfaction of the debt. Follow these steps:
- Obtain a Payoff Statement. Request a written payoff statement from the lender. This document itemizes the outstanding principal, accrued interest, and any fees. It typically remains valid for a limited time (often 10–30 days).
- Make Payment and Collect Receipt. After sending payment, get a dated receipt or proof of payment from the lender. Retain both electronic and paper copies.
- Secure a Lien Release. Under Indiana Code § 9-17-1-30, once the loan is satisfied the lienholder must execute a release of security interest on the form prescribed by the BMV. Ensure the lender either:
- Files the release directly with the Indiana Bureau of Motor Vehicles (BMV); or
- Provides you a signed release so you can submit it to the BMV.
- Verify Title Status with BMV. Visit an Indiana BMV branch or log in to the BMV Online Services portal. Request a copy of the vehicle’s title record to confirm that the lien is removed and the title is clear.
- Keep Detailed Records. File all documents—payoff statements, payment receipts, lien releases, and updated title records—with the estate’s records. This supports your final account to the court and complies with your duties under Indiana Code § 30-2-6-2.
Indiana Code References:
- IC § 9-17-1-30 (Lien Satisfaction and Release of Security Interest)
- IC § 30-2-6-2 (Personal Representative’s Duty to Pay Debts)
Helpful Hints
- Obtain all payoff numbers in writing to avoid surprises.
- Request the lender to send lien release directly to the BMV for faster processing.
- Use certified mail or tracked shipping for important documents.
- Verify the BMV record 2–4 weeks after submitting the release to confirm lien removal.
- Retain digital backups of every document in the estate file.