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?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 8 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.


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 with SHA-256 Encryption