What happens to a car with an outstanding loan upon death?

UPDATED: Dec 3, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What happens to a car with an outstanding loan upon death?

My father-in-law has a car that no one wants upon his death. What has to be done with it?

Asked on December 3, 2011 under Estate Planning, Colorado


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If your father-in-law passed away with a loan still unpaid upon his vehicle and one wants the vehicle, the executor of his estate assuming he was a Will or the trustee under the trust have the decision to either continue making the payments on the loan by the estate or not.

If payments are not made, then the lender will repossess the car and sell it at auction where most likely there will be a deficiency owed by the father-in-law who is deceased. The lender then has the option to file a claim against the estate for the deficiency and if not accepted by the estate, the lender could file a lawsuit for the money owed on the loan.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption