Is a person responsible for a loan co-signed for them after the co-signer dies?
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Is a person responsible for a loan co-signed for them after the co-signer dies?
My father co-signed a car loan for my sister. He died 7 months ago. She defaulted on that loan leaving his estate to pay off the loan. Is my sister legally responsible for paying the defaulted part of the loan back to his estate?
Asked on August 26, 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 and for the issues involved. If your sister was primarily responsible for the loan and defaulted while your Dad was still alive, he would have the right to sue her for the money. So his estate then has the right to do so. I would try and resolve the matter amicably given the situation. Is it possible to take it out of her inheritance? Good luck.
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