What happens when a parent takes out a loan and used their car as collateral dies.?

Question

After the insurance has paid off the loan, and the remainder of insurance has been given to the beneficiary, Does the beneficiary have legal rights to the car.

Answer 1

Of course, why wouldn't they if it's paid off.

Answer 2

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Answer 3

You only have a beneficiary when there is a will, and the deceased named someone to inherit personal property ( a car is considered personal property). Otherwise, the person died intestate (w/out a will). What insurance pays off the loan? Did the car have a credit life policy on the auto loan? Or, are you talking about life insurance? That doesn't pay off loans. The proceeds go directly to the beneficiary named by the policy owner. The title has to be changed from the deceased person's name. In order to do that, you have to have court authority to change the ownership. See a lawyer.

Answer 4

The car is part of the parent's estate;  The will, estate plan or probate court dictates what becomes of it.