UCDA Members are often confused when approached by someone looking to sell a vehicle belonging to a deceased person.
Administrating the “Estate” of someone who has died can be complicated, and many people are unsure what to do. Having said that, we have an aging population, and these circumstances are becoming more and more common.
In order to get a handle on the situation, you should first ask certain questions and request certain documents.
The first question you should ask is “who owned/owns the vehicle”? The answer to this question will determine how you proceed.
Joint Ownership
If the vehicle was registered jointly, such as by a husband and wife, and the husband passed away, all the widow has to do is go to a licence office, with the death certificate, and have the vehicle registered solely into her name. She is then free to sell or trade-in that vehicle like any ordinary individual would.
If the deceased owned the vehicle and it’s only registered in their name, the process becomes more complicated.
The next question you should ask is “did the deceased have a Will”?
Sale with a Will
If the deceased had a Will, then you will need a copy of the death certificate, the Will, and a court endorsed “Certificate of Appointment”, also known as “probate”, recognizing the validity of the Will and the Executor(s) appointed under it.
The Executor under the Will or the “Administrator with a Will” is the person who can sign the contract and legally sell you the vehicle. Where there are multiple Executors, it is prudent to confirm that all Executors agree to the sale. You should keep copies of these documents in your file.
The cheque or payment for the vehicle should be made payable to the “Estate of ******** (the deceased)”. The Executor will take the cheque, deposit it into an Estate bank account, and then distribute the funds to beneficiaries entitled to the money under the Will. This part has nothing to do with you.
Sale without a Will
If the deceased passed away without a Will, then someone will need to obtain a Court Order that recognizes a person as the “Administrator without a Will”. This person can then legally sell Estate assets, like vehicles. Again, it is important that you keep copies of all documents (death certificate and Court Order) for your file and make the cheque payable to the “Estate of ******** (the deceased)”.
Estates and “Trade-Ins”
Lately we have received questions from Members regarding accepting trade-ins of vehicles owned by deceased family members.
Dealers should be hesitant to accept trade-ins on behalf of an Estate, even if it is for a vehicle that the Executor wants to “purchase” on behalf of the Estate. This is because the purpose of an Estate is to generally dispose or get rid of assets—not acquire new ones.
Instead, it is preferable that the dealer get the Executor to follow the above process, depending on whether there is a Will or not, to transfer the vehicle to the individual entitled to the vehicle in accordance with the deceased’s wishes. Once the beneficiary has ownership of the vehicle, they can put it towards a trade, just as any ordinary individual might.
Power of Attorney
One final note. We often get asked about Powers of Attorney (POA) in cases where a vehicle owner has died and had a POA. These documents are of no assistance when dealing with a deceased person. POA’s only assist when the person is still alive.