If you have a will your property will pass according to the provisions in your will. If you die intestate (without a will) your property will pass according to the state laws of intestacy. See link below.
The beneficiary's share goes into their own estate.
You die in real life.
If you die without having any relatives, and have not left a will - your estate goes to the treasury.
When you die in real life all your body organs stop working.
The government is not going to get their money. They will have to be satisfied that there are no assets in the estate and that no one else got paid.
State probate laws will determine how the deceased's estate is distributed.
The estate has to resolve the loan, either through selling the car or returning it to the lender.
Generally, if there is no surviving spouse the children of the decedent will share the estate equally. If there is real property the estate must be probated in order for title to pass to the heirs. You can check the laws of intestacy in your state at the related question link below.
Real property is a part of the estate in every state. It is usually the biggest asset the estate has. However, depending on the ownership of the property, it may not be a part of the estate because it automatically belongs to someone else when they die. If it is owned as 'joint tenants' or 'tenants by the entirety' it will automatically go to the surviving person without entering the estate.
Your creditors can make claims against your estate if you own any property at the time of your death.
You die in real life.
One of the primary reasons to open an estate is to resolve such issues, including taxes. The estate has to pay off the debts. If the estate cannot do so, they distribute as best they can. If the court approves the distribution, the debts are ended.