What Happens To A Car Lease After The Lessee Passes Away?

There are the unfortunate situations where the lessee of a car passes away.

What happens then? Who takes care of the lease? Is it swept under the rug?

If there is a co-signer in the mix, there is a possibility that they will be given the responsibility of taking care of the remaining monthly payments of the lease. But what if there is no co-signer?

Reading The Fine Print

If the deceased has left behind a spouse, they may be notified of the outstanding balancing left on the car lease. The contract on the car lease that deceased signed should be read over carefully, looking for the leasing company’s terms in an ending a lease early. Early termination fees can also apply.

Deceased’s Estate

There is the responsibility of the executor of the deceased’s will. The executor distributes the deceased person’s property based on the will and arranges for the payment of debts and expenses. They will contact leasing company, informing them that the lessee has passed.

The estate of deceased will most likely have a claim filed against them, though there is a small possibility of the estate being able to break the lease on behalf of the primary lessee, that possibility usually comes with a cost.

Once leasing company has filed a claim, the executor can pay off the balance through the estate funds. After the claim has been paid, a call should be made to the leasing company to return the leased car.

Chance of No Payments

Even if the outstanding balance of the car payments are not paid, expect there to be additional fees such as process repossession paperwork, cutting new keys, and reconditioning chargers for any excessive wear and tear.

Getting out of a lease is tricky, but what is trickier is the lessee passing away and figuring out who will be handling their lease payments.


Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online and doing their best to accommodate situations where the lessee, unfortunately, passes away. For more information on finding the best car lease deals or to learn how you can have a successful car lease trade, visit Swapalease.com or contact them at 866-SWAPNOW.