[jablackm]

My grandfather recently passed away who had taken a car loan (in his name only) in the state of Arizona. My grandmother, who does not drive and has never had a driver’s license, is now faced with owing 19k on a 2006 Kia Sorento that is only worth 17k. Can she voluntarily turn the car in without any negative impact to her?

Thank you,
Jake

[jablackm]

Also... The title of the car is soley in his name, not the estate, nor my grandmother. I called the finance company this morning and they stated that we could turn the car in; however, my grandmother would owe the outstanding balance of the difference between what is owed and what it would sell for at auction.

I talked with my tax person who has limited knowledge of law and said if the car was not titled to the "estate of" we should be able to turn the car in with no issues since it was in soley in my grandfather's name.

Any advice is appreciated.

[aaron]

If the loan is exclusively in his name, a default or repossession shouldn't affect your grandmother's credit. The lender may be able to make a claim for the deficiency against your grandfather's estate.