When a person leasing a vehicle passes away, most of the time the lease does not die with the person. The future of the car lease is determined by the provisions in the contract. Often times, payments still need to be made and the payments become the responsibility of the deceased car lessee’s estate.
What happens to money in your bank when you die?
If someone dies without a will, the money in his or her bank account will still pass to the named beneficiary or POD for the account. The executor has to use the funds in the account to pay any of the estate’s creditors and then distributes the money according to local inheritance laws.
Who is responsible for paying a car lease if the lessee dies?
The deceased lessee’s estate is liable for making the payments. Therefore, if the written lease doesn’t have a clause dealing with early termination without fees, the lessee’s estate may be required to continue making the payments.
Can a car lease be terminated after death?
“While several auto companies may have policies permitting early termination upon death, in many cases, the lease continues and the deceased lessee’s estate is liable for making the payments,” she said. That’s because a lease is a contract, she said.
Can a co-signer of a car lease die?
In some instances, death may be classified as an “early termination” of the lease, and payment obligations may continue. If there is a co-signer on the lease, such as the deceased’s spouse, he or she may be liable for future payments.
Can a car lease company claim unpaid obligations?
California and New York laws say the same thing: leasing companies can legally claim unpaid obligations from the estate of the deceased. The car dealer isn’t required to, but it’s not unheard of for a sympathetic car company to be compassionate and just put the car up for sale, so actual losses would be minimal.
