My grandfather recently passed away, and we learned he was still paying off a car loan at the time of his passing. We’re trying to get his estate in order now. Are car loans forgiven after death?
will not be forgiven, unlike many other debts. It will have to be taken over or paid off.
In your situation, you should check your grandfather’s will to see if he outlined his wishes for the car. If he did not, the executor of the will and estate will be responsible for making the decision. You can also read through the loan agreement’s death clause for details surrounding his specific loan, as policies may vary by lender.
The matter is typically settled by:
Using funds from the estate to pay off the loan and take full ownership of the vehicle
Having a family member take over the loan
Letting the lender repossess the vehicle
Finally, I’m sure you have plenty on your plate, but if you need to find a new
. Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies for free. Once you select a policy, their friendly agents will take care of all the paperwork and phone calls for you.
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.