Will co-signing a loan tie up a person’s estate?
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Will co-signing a loan tie up a person’s estate?
My grandmother co-signed a student loan. Now her other children think that if she dies before this loan is paid off by the student, it will tie up their inheritance. The student still has the more years of college, so the loan is not due yet.
Asked on July 27, 2012 under Estate Planning, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
The loan that your grandmother co-signed for one of her relatives will not tie up her estate if she passes before the loan is paid off. If she passes and the loan is current on payments, the assets of her estate will simply pass to her designated heirs without any problems being raised by the lender.
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