What happens to a vehicle lease when the lessee dies depends on the lease terms. The lessee’s death does not alter the lease unless it contains a termination due to death term. This could result in all payments on the lease becoming due, early termination fees, and return of the vehicle. These costs are typically paid from the estate. The dealer could permit a transfer of the lease to another party. When there is a cosigner on the lease, that individual typically assumes financial responsibility for the remaining lease.

Unless there is a cosigner, the estate will be left to deal with an outstanding car lease. The options for resolving the lease agreement will ultimately come down to the contractual language and the willingness of the dealership to negotiate with the estate.

Schedule an appointment if you need help legally terminating or transferring a lease.