Wills and Living Wills

questions & answers

Question: my grandfather has recently passed away. he financed a car for me 6 months before he passed. his name is the only one on the loan. how do i transfer the loan into my name although i dont have an established credit history.

Answer: The language of loan contracts (including car loans) generally prohibit transfer (“assignment”) to another party (or, only upon the lender’s consent). The loan contract between the lender and the borrower, is created, based on the borrower’s proven credit background. The death of the borrower usually terminates the loan “contract”, and forces the lender and others who had business with the decedent to work with the probate court to resolve the debts and entitlements pending at his/her death. Also Note: presumably the vehicle itself is in your grandfather’s name because he could not have obtained a car loan otherwise. Consequently, the vehicle (to the extent of your grandfather’s partial payments) could be considered part of his Estate, to be sorted by the Probate Court.