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Can a bank include in a loan that the car is paid off in the event of a death if it was a gift?
Wiki User
∙ 11y ago
If you know of a bank that does that, please give me their name. It is extremely unlikely that any bank would offer for forgive a loan balance for any reason. The bank's loan dept. is not in the insurance business. Keep in mind that the bank actually owns the car because they hold the title in their name as collateral for the loan. The car does not legally belong to you until you hold clear title. If you die owing money on the loan, the bank will sell the car to recoup as much of the outstanding balance as they can. The bank might allow another party to assume the payments under a prearranged agreement. Calling the car a gift means nothing. And I wouldn't consider it a gift if you have to pay for it!
Wiki User
∙ 11y ago
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