How to Keep a Deceased Relative's Auto With a Loan

When a relative dies and leaves behind a vehicle, that vehicle does not have to be sold. In fact, you can keep the automobile. While a loan in the deceased relatives name cannot remain open for you to make payments on, it is possible to keep the car with financing of your own. Each state's department of motor vehicles has a slightly different process to take over a vehicle from someone deceased, but the basic requirements remain the same throughout the U.S.

Instructions

1

Contact the financial institution that services the deceased relatives loan to inform the company about the death. Send the institution a death certificate for your relative.

2

Apply for financing with the lender to take over the loan. Unless your name was originally on the loan with the relative, the current loan must be paid off and you must get a new loan to keep the car financed in your name. If you prefer to use a different lender, you can get the payoff amount from the current lender and apply for a loan to cover that amount with your lender of choice.

3

Get the vehicle title from the executor of the estate and take it to your local department of motor vehicles to register the vehicle in your name. Bring a copy of the death certificate. If you are listed on the title as a joint owner or if the vehicle was left to you by the relative in a will, you do not have to pay tax on the vehicle. However, if none of those scenarios applies to you then you should expect to pay an excise tax on the vehicle. The amount varies by state. Pay any registration fees as well, which also vary by state.