What happens if a co-signer of an auto loan dies?
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What happens if a co-signer of an auto loan dies?
My grandma co-signed a loan for me to get a new vehicle. Once the vehicle was paid off we did not have the chance to remove her name from the title of the vehicle before she passed away. Now the executor of the estate is saying I owe the estate half the value of the vehicle. Is there anyway I can get around this? And can they hold other money that is to be inherited by me until I give them the money for the vehicle?
Asked on February 9, 2015 under Estate Planning, Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
If she had been just a co-signer, then no--you do not owe the estate anything. But you say that she'd been on the vehicle's title: that means she was more than a co-signer; she was a co-owner. That being the case, then yes--you owe her estate half the value of the vehicle. They can't hold your inheritance to get the money, but they could sue you for her share.
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