Last will and testament and a co-signed loan (payments, obligation, sell)

[jimdc58]

If someone that has passed away makes you his beneficiary, but he also has co-signed a loan for another individual, do you, by way of inheriting the estate become financially responsible for that loan if the other person fails to meet the loan obligations?

This isn't a real scenario, but just a situation that I got to thinking about.

[raggedjim]

Nope

Rg

[Aredhel]

No, the worst case scenario is simply that you don't actually inherit anything (because there's nothing left to inherit after the estate attempts to settle the debt by selling off all the assets). You're not liable, and won't owe anything.

[jiminnm]

As Aredhel stated, the debt becomes a liability of the estate. The estate would likely have to remain open until that debt was paid and the administrator might have to set the amount of the liability aside and not distribute it until the liability is eliminated.

[rjm1cc]

No. If the loan goes bad the lender could have a claim against the estate. When the estate is probated the lender should be notified and if they do nothing then you should be in the clear as long as probate is completed before their is a default on the loan. If you get any paper work on the loan do not sign anything and do not make any payments toward the loan as you have no responsibility for the loan.