If I was a co-signer on a loan and my co-signer put up the collateral but passed away, if the collateral was collected do I still owe the estate?
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If I was a co-signer on a loan and my co-signer put up the collateral but passed away, if the collateral was collected do I still owe the estate?
My grandmother and I co-signed a loan and she put her account up as collateral. When she passed away the loan was closed as sufficiently paid, taking the remaining amount from her account. My aunt is in charge of the estate and says I owe her the money now. Am I legally obligated to pay her if the loan has been closed and the bank says I owe nothing?
Asked on August 8, 2012 under Estate Planning, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
I am so sorry for your loss. Maybe. If you and your grandmother were equally responsible for the loan then you may owe her estate your half of what was paid from her account. What was your agreement? Your Aunt can come after you if she is the Personal Representative. Good luck.
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