If somebody dies and they just bought a new car would their children get to keep it if its not paid for?

I was just wondering because mother has a terminal illness and she is considering getting a new car. She is just worried about getting a car that we will be stuck with that we dont want, can't afford, etc..

Is there insurance you can get for that???

It would go against the estate. Payment would have to come from there. If it's not paid for completely from that, then you'd have to give it back, sell it to make the difference, or keep it and sign the payments over to you.

Insurance? Yeah, life insurance.

I WOULD GET SOME LIFE INS THEN IF ANYTHING HAPPENS TO MOM THEN THE USE THE INS TO PAY OFF THE CAR MAKE SURE YOU HAVE ENOUGH FOR EVERYTHING WORK SOME NUMBERS AROUND AND SEE WHAT YOU COME UP WITH GOOD LUCK TO YOU........................................ IS A WAY TO HAVE MOM'S NAME AS THE OWNER AND YOUR NAME DOWN IF SOMETHING HAPPENS ASK DMV THEY CAN HELP YOU................................

One can buy credit life insurance. It is a policy designed to pay off a specific debt. Ordinarily it is a terribly idea but in the case of one expecting to die it might be worth it.

The estate of the deceased person is responsible for paying the debt.

loans are insured

No, it's considered part of the estate under probate. Sorry.

The car will still need to be paid for or it will be repocessed.

Why would you want to cheat the loan company.

If she is terminally ill, I doubt she can get insurance.

If any life insurance is paid to the children, the money could be taken from that to pay for the new car. Otherwise, the children's relatives would have to return the car since they are minors and not old enough to have a driver's license (if this is the case). I'm sorry about your mother, you're going through a difficult situation now, and you don't need to worry about fiances and bill right now. Tell your mom that the old car is just fine. Maybe, she mistakenly believes that if she bought a new car then died, that the family would get it automatically. Let her know the laws.

Any debt at the time of a person death is paid out of their estate. If they do not have enough money in their estate to cover it, then you will not be allowed to keep it

I am not a lawyer. But from what I know, if a car is purchased but not paid for, the estate of the deceased would have to pay it off. If the estate was insolvent, it would be declared bankrupt. The asset would be repossessed by the bank or lending company. There is no such thing as a "free lunch".