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Who is on title to the car? Is it solely in his name or is she on title also?
If he passed, the vehicle would be part of his estate and should pass to his wife. As such, if you pay it off and she is willing to transfer title to you, there is nothing wrong with that happening. Of course, it is at her sole discretion but the bank may simply not take it back and may want the balance of what is owed and if not paid, they will go after his estate. As such, it may be in her best interest and easiest to allow you to pay it off, for her to take title as it passes to her and then transfer it to you.
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