QUESTION
What will happen to car loan if person dies without co-signer, will, or power of attorney?
Asked on Nov 09th, 2017 on Estate Planning - Illinois
5 ANSWERS
1) Funds from the estate can pay off the load and the vehicle becomes part of the estate. 2) The estate can sell the vehicle and pay off the loan with the proceeds. 3) The estate stops paying the loan and the vehicle is repossessed by the holder of the loan. 4) An heir of the estate can inherit the vehicle and pay off the loan.
Answered on Nov 10th, 2017 at 7:34 AM
Thomas Edward Gates
The estate is responsible for payment. The dealership will need to file a claim to the estate to get paid.
Answered on Nov 10th, 2017 at 7:33 AM
Probate Attorney serving Newport, OR
at
Minor, Bandonis & Haggerty P.C.
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The heirs at law will have to decide whether to continue to pay on the loan, or whether to transfer the vehicle back to the lender (or let the lender take it back).
Answered on Nov 10th, 2017 at 7:31 AM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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Car goes to descendant pursuant to statute on descent and distribution. Loan follows car. If descendant wants car they will have to pay loan or lender will take car.
Answered on Nov 10th, 2017 at 7:31 AM
Estate Planning Attorney serving La Grange, IL
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Law Office of T. Phillip Boggess
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The lender wants to get paid. I?d arrange for them to get paid or at least let them know there will be a delay and why. Then you either have to use a small estate affidavit if the total value of assets is under $100,000 (not equity in the assets?value of the assets?.all of the values added together) or file in court to open a probate estate if over $100,000 in total asset value. Phil
Answered on Nov 10th, 2017 at 7:29 AM