Boat From Estate in Mexico... What Should I Do?

My recently deceased father left a 1985 48' Hershine trawler in a slip in Mexico. The boat itself hasn't had routine maintenance done in at least two years (no cleaning fuel tank, cleaning hull, painting, etc.). I haven't flown down to see the boat but do have some photos (exterior | interior)

1985 Perkins6-354TI 420HP Diesel engine

There are several problems for me in this situation:
1. Father owes $20k+ in back rent to marina
2. Boat is in Mexico
3. Delayed maintenance for several years - see exterior photos
4. Inside of boat has stuff everywhere (hoarder/clothing strewn about/unwashed dishes/toilets haven't been pumped) - see interior photos
5. Unknown mechanical condition as it hasn't been out of the marina in years and don't know when it was last fired up.

Marina wants us to sign a waiver of interest basically giving them the boat, which they will sell for a settlement amount of what is owed to them.

I don't know what to do. It's a very unfortunate situation and I'm trying to make the best of it and move forward. It looks like a very nice boat in many ways and not really a "project boat" although it looks like it will be a project.

I've considered flying down, cleaning it out, getting a survey and having the proper maintenance and repairs done, then selling it. I just don't know if it'll be worth my time and money at the end of the day. I've seen similarly sized Hershine vessels selling for $75k - $125k, so it seems like there's potential for value, I just don't know what that is.

I'm looking for advice on what to do: sell it, run away, keep it. Your advice and thoughts are appreciated.

I would probably go down and look through the boat to see if there are any of your dad's valuables, photos, or keep sakes to be taken home.

Then I would sign it over to the marina. Not enough upside and huge potential for down side.

Ted

There is much more to this story. What condition is the rest of the estate in?

As to just this boat. Prices are currently falling so asking of $75,000 to $125,000 is not getting. Knock off 10% for broker fees. Knock off another 10% for being in Mexico and then add $25,000 in expenses to make things happen. Then take off the what will be $25,000 in back rent by the time this is finished. This will leave you in the area of $10,000 to $50,000. Lets just guess at $30,000 but be aware, you could end up in the red if you discover a lot of deficiencies in the boat.

If there are enough funds to settle the rest of the estate than signing off the boat would be an easy way to settle the estate. If the rest of the estate is equally in the red then you should be talking to a lawyer about fiduciary duty.

O C Diver said:

I would probably go down and look through the boat to see if there are any of your dad's valuables, photos, or keep sakes to be taken home.

Then I would sign it over to the marina. Not enough upside and huge potential for down side.

Ted

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Thank you for your perspective.

tiltrider1 said:

There is much more to this story. What condition is the rest of the estate in?

As to just this boat. Prices are currently falling so asking of $75,000 to $125,000 is not getting. Knock off 10% for broker fees. Knock off another 10% for being in Mexico and then add $25,000 in expenses to make things happen. Then take off the what will be $25,000 in back rent by the time this is finished. This will leave you in the area of $10,000 to $50,000. Lets just guess at $30,000 but be aware, you could end up in the red if you discover a lot of deficiencies in the boat.

If there are enough funds to settle the rest of the estate than signing off the boat would be an easy way to settle the estate. If the rest of the estate is equally in the red then you should be talking to a lawyer about fiduciary duty.

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Thank you for your perspective. Certainly there is more to the story and that will be part of the consideration.

Where in Mexico? La Paz maybe easier? Based on location, I’d reach out to someone local so at least they can look at the settlement statement.

O C Diver said:

I would probably go down and look through the boat to see if there are any of your dad's valuables, photos, or keep sakes to be taken home.

Then I would sign it over to the marina. Not enough upside and huge potential for down side.

Ted

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+1 on this. The boat is WAY more likely to be a financial and time sinkhole than it is to yield much more $$ by fixing and selling. Unless you specifically want to take it on as a personal project, because you want a big boat project, I'd get out of it as fast as possible.

O C Diver said:

I would probably go down and look through the boat to see if there are any of your dad's valuables, photos, or keep sakes to be taken home.

Then I would sign it over to the marina. Not enough upside and huge potential for down side.

Ted

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I agree with Ted. You have not said anything to suggest you are excited to clean it up and go boating. Don't waste money on a survey.
What if you offered it for sale as is $40,000 and take the best offer. The marina offer may be the best offer, you would find out real quick. Maybe you have a chance at a few dollars above the moorage cost.

Anyone who has a 25 grand marina bill probably has not done any maintenance for well before they stopped paying rent.

I would urge caution for anyone contemplating trying to step in to buy this boat at a bargain price. It may all be legitimate, but this also has all the hallmarks of a scam.

OP, first of all, absolutely fly down there and remove anything of sentimental value.

But how about keeping it for yourself, get into boating, appreciate something that your father (hopefully) loved, remember and be reminded of him.

Hire a local attorney, pay off the shipyard, receive a proper release, invest (say) another $20k at the local shipyard to clean the coral reef off the bottom and give all the systems a go-over.

The boat doesn't look all that bad and I've seen much worse.

If you have no interest in boating, then before you give it away for free to the marina, offer to any other family members who have the means to do so.

On the other hand, if you're a scam artist... then I have a cousin who is a prince in Nigeria. He'd be willing to pay $15M for the boat, just send me a money order for $150 to cover my phone calls

Plus 1, or whatever by now, on what Ted said. You could easily spend $50K and then pay the marina $20K and sell the boat for $40K. Or worse.

twistedtree said:

I would urge caution for anyone contemplating trying to step in to buy this boat at a bargain price. It may all be legitimate, but this also has all the hallmarks of a scam.

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Good guidance. The OP has not disclosed location; abandoned boats are fairly easy to seize by a boatyard or marina in Mexico so not sure the marina needs much in the way of a release; and just navigating the TIP process could be the foundation of endless requests for additional fee payments.

Or it could he legit. But advising caution is very sound advice

Peter

I do not recommend that you go there. If you are the personal representative of your father's estate in the state in which you are probating his Will, that appointment has no jurisdictional value over property in another state, to say nothing of a foreign nation. I would sign the boat over unseen, although your signature likely isn't even necessary. I love Mexico, but where money is allegedly owed, strange things can and do occur. The above is true whether the estate is solvent or insolvent. Just my free opinion.

I would make sure your dad did'n't have auto pay to the marina before making further decisions. Not saying the marina would not be honest, but the marina might not be honest.

Mac2 said:

I would make sure your dad did'n't have auto pay to the marina before making further decisions. Not saying the marina would not be honest, but the marina might not be honest.

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Sound advice, except if decedent owes that much and is in arrears, I doubt there is or has been any relevant autopay for many years.