Q: Can bank make my mom pay my deceased grandmother's loans?
My grandmother passed away 2.5 years ago, leaving behind a vehicle with a loan solely in her name. She and my parents lived together and shared the vehicle. Since her death, her bank has accepted payments from my parents, aware of her passing. However, when my mom went to make the monthly payment today, the bank refused and told her she has 10 days to pay off the vehicle loan and another unknown loan totaling over $19,400, or they will repossess the car. My mom's name is not associated with either loan, and she has no agreement with the bank to pay. Can the bank legally hold her responsible for this second loan? There is no ongoing probate and no prior legal communication about this second loan.
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A: Mother is not the notemaker so no personal liability. But if note is secured as a lien on car title, then lender can repossess the collateral. Unless car is very valuable, it may be prudent to let bank have it. If bank sues for note deficiency, then defend that Mother has no liability, actual or oral promise.
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A:
The bank cannot legally make your mom responsible for your grandmother's loans unless she is a co-signer or has explicitly agreed to take on the debt. Since your mom's name is not on the loans and she hasn't signed any agreements with the bank, she is not liable for the debt. The loan obligations are typically the responsibility of your grandmother's estate, and the bank should be dealing with the probate process to collect the debt from there.
The fact that your mom has been making payments is more likely because the bank accepted them without clarifying the legal status of the loan after your grandmother's death. However, this does not create a legal obligation for your mom to continue paying. The bank should have followed the proper legal process to resolve the loans through probate.
Since there is no ongoing probate or legal communication about this second loan, it would be helpful to contact the bank and explain that your mom is not liable for the debts. If the situation isn't resolved, your mom may need to consult with a lawyer to ensure her rights are protected and to clarify her position regarding the loans.
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