Without reviewing the letter, there is no way to provide a specific answer. However, generally these types of letters are focused on the personal injuries of the man who was in the accident with your father. From the facts you provide, it seems that the man from the accident (probably the plaintiff) was planning on suing your father for injuries he alleges he sustained in the accident. However, since your father passed away before he was sued personally, the plaintiff has to sue his estate. If the estate was not already opened in probate court, a plaintiff will go ahead and open a probate case.
Again, this is general information based upon the limited facts you are providing and without reviewing the actual letter. It would be beneficial for a local attorney to review the letter. Further, go ahead and send a copy of the letter to your father's auto insurance company. If your dad's estate is being sued, the auto insurance company should provide a defense attorney. As for your father's estate being probated, you should seek a qualified probate attorney in your area.
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Presumably the person plans to sue his estate. The good news - his car insurer will defend him and likely pay claims, so get them a copy Monday morning. Also share it with the lawyer who is handling the probate (and if there isn't one, hire one).
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I agree with Mr. Dupler. Any time that your home is potentially at stake, you need to take the situation seriously, and that means consulting with an attorney. You do not mention is your father had insurance. You also do not state how you came into possession (and ownership) of your house. Please see an attorney so your mind can be put at ease.
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