Carlsbad, CA asked in Probate and Estate Planning for California

Q: my dad who passed away has a auto loan in his name can my mother use the car now and sell it when she chooses to do so?

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James L. Arrasmith
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Answered

A: In California, when a person passes away with an auto loan in their name, the loan does not automatically transfer to another person, including a spouse. The estate of the deceased is responsible for the debt. If your mother wishes to use and eventually sell the car, the loan must be addressed.

Typically, the executor or administrator of the estate needs to contact the lender to inform them of the death and discuss how to handle the outstanding loan. If your mother wants to keep the car, she may need to refinance the loan in her own name.

Regarding selling the car, it's important to note that the loan must be paid off before the car can be legally sold. This might mean using other assets of the estate to pay off the loan, or it could involve selling the car to pay the loan and distributing any remaining funds according to the terms of the estate or state law.

It's advisable to consult with a lawyer who can guide you through the process of handling the auto loan and the legal requirements for transferring or selling the car. They can provide tailored advice based on the specific details of your situation.

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