When a loved one passes away, managing what happens to their belongings might not be at the top of your priority list but it’s an important process that you will eventually need to go through. Although you will be dealing with emotional turmoil and upset, you may find yourself in the position where you will need to consider what happens to the deceased’s assets. In this article, can I sell my dad’s car before probate, we take a look at the process and steps involved.
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What steps to take when someone dies
In addition to dealing with the funeral arrangements, there are a number of steps that need to be taken before you can deal with the deceased’s financial affairs:
- You should register the death within 5 days. By doing this you will obtain a death certificate. This is an important document that you must keep safe as you will need the original in order to gain access to the deceased’s bank accounts.
- If the deceased left a Will, an executor will have been named. This is the person responsible for handling the estate of the deceased. Once the executor has the original copies of the Will and the death certificate, they can apply for probate. If someone dies without a Will, the application process is the same, but you’ll get ‘letters of administration’ rather than a ‘grant of probate’.
- You will need to estimate any inheritance tax liability and notify HMRC of the same. We can advise on this.
- Once you have the Will, death certificate, and grant of probate, you are then in a position to notify the banks, utility and insurance companies.
What happens to my estate after I die?
When you die, your affairs will need to be wound up, any outstanding debts paid off and your Estate distributed to those that are entitled to inherit it. This responsibility for this process (Probate) will fall to the person – or people – who have been named as Executors in your Will (if you have one). If you don’t have a Will, then this person will be determined by inheritance laws instead. The term for this individual is ‘Personal Representative.’
As part of the Probate process, your Personal Representative will need to calculate whether any Inheritance Tax is due and how much if so. They will then be responsible for reporting this to HM Revenue & Customs (HMRC) and settling the tax bill from the Estate.
One of the first things that your Personal Representative will need to do is to value everything in your Estate. This includes everything of value that you own when you die including your car.
To calculate the overall value of the Estate, your Personal Representative will need to subtract any debts, bills and funeral expenses from the total value of your assets. AnyLifetime Giftsthat you have made in the last 7 years will also need to be taken into account.
What options are available regarding my Dad’s car?
A motor vehicle is a chattel and you do not have to wait until a grant of probate or letters of administration have been issued to be able to transfer a car to another owner or to sell it.
You will need your father’s death certificate and also legal proof of your entitlement to sell the vehicle on behalf of your his Estate. This could be part of the will where you are named or on a Solicitor’s letter showing your entitlement to deal with the proceeds of the Estate.
You may be named as an executor of the will or there may be other legal proofs that show your entitlement to sell the vehicle. If there is more than one executor of the Will, all named executors with all the required personal proofs of identification would be required to be present at the time of sale prior to any agreed payment being made.
If your father owned the car outright, you can transfer ownership by contacting the DVLA and then either sell it on or continue to run it. It’s important to make sure insurance is still valid and you’ll need new vehicle excise duty (VED). If you decide to keep the car, you’ll need to contact the DVLA to tell them the current owner has died – and include the driving licence with a letter detailing your relationship to the deceased, the date they died and their name, address and date of birth. If you intend to keep the car you must tell DVLA that you’re the new keeper of the vehicle.
These changes can be made with section six of the V5C logbook. You can’t transfer vehicle tax any more so you must get a refund on any outstanding tax and re-tax it in your name once you are registered as the owner. You no longer need to wait for a new logbook in your name to tax the car – you can use the V5C/2 part of the logbook (green slip, section 10) and this can be done online.
You can also register the car as off the road (SORN) – if you want to keep it in a garage for the time being and not pay tax. Once it’s in your name you’re free to sell the car on to a private buyer, dealer or online car buying site.
If there is outstanding finance on the car, you might be able to take over payments if you want to keep the car by contacting the finance company. If you want to get rid of it, then you won’t have to go through the process of selling it as the vehicle still belongs to the finance company. In this instance, the car will be taken off you and often sold at auction to cover the outstanding loan. Any shortfall will need to be covered – normally by the deceased’s estate. Depending on the contract, you may be able to hand the car back without paying any fees under ‘halves and thirds’ rules if a certain repayment amount has already been met.
If the car has little commercial or sentimental value, scrapping the car may be a desirable option. Most firms will collect the car free of charge and give you a pre-agreed scrap value depending on the type, age and condition of the car. You may also consider selling the car for salvage or giving the car to charity. If you go down this route, you must tell the DVLA you’ve taken the vehicle to an authorised treatment facility (ATF) or you will risk a fine of up to £1,000. Also, ensure you give your ATF the vehicle log book (V5C) while you must keep the V5C/3 (notification of sale or transfer of a vehicle) this is the yellow part.
How we can help
We have a proven track-record of helping clients deal with probate matters. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Wills and Probate Solicitors
It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of guiding you through the often emotional process of probate in a sensitive and supportive manner and help ensure you achieve a positive outcome.
To speak to a member of our New Enquiries Team today, simply call us on 0345 901 0445,or click here to make a free enquiry.We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Authored by Ben Posted in News, Private Client Tagged as
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