They say you can’t take it with you – not even your car. So, when someone passes away, it’s best to make sure the vehicle doesn’t get left idling in legal limbo!
When someone passes away, dealing with their car may not seem urgent — but it’s an important part of estate administration and is just one of many practical matters that must be addressed.
In the UK, there are specific legal and administrative steps to follow to ensure the car is dealt with properly — whether it’s being kept, sold, transferred, or scrapped.
One of the first steps is to inform the Driver and Vehicle Licensing Agency (DVLA) of the owner’s death. One way the DVLA can be informed is via the Tell Us Once service.
Change of Car Ownership after Death and Legal Responsibility. The first step is to establish who is legally responsible for handling the deceased’s estate. This is usually the executor, if there is a will, or the administrator if there is none. This person has the authority to make decisions about the car, including whether it is transferred, sold, or disposed of.
What Happens to Car Insurance after death?
Car insurance policies typically become invalid upon the policyholder’s death, unless otherwise stated by the insurer.
The insurer should be contacted to notify them of the death. You may arrange for short-term cover if the car needs to be moved or driven before it is transferred or sold. Driving the car without valid insurance is illegal. If the car is being kept in storage or parked on a driveway, it should still be insured against theft or damage.
What Happens to Road Tax and SORN?
Vehicle tax cannot be transferred. It is automatically cancelled, and a refund for the remaining full months is sent to the estate.
If the vehicle will not be used on public roads and is stored on private land, the executor/administrator may submit a SORN (Statutory Off Road Notification)via the GOV.UK website. The new keeper must re-tax the vehicle before driving it, even if the deceased had paid tax on it previously.
Selling or Transferring a Deceased Person’s Car
Depending on the circumstances, the executor may decide to sell the deceased person’s car and use the proceeds to help settle the estate or transfer it to a beneficiary.
In either event the DVLA will need to be notified of the new ownership, usually using the V5C sending this to the DVLA or submitting it online. The new keeper must tax and insure the vehicle in their own name.
In UK law, a car is considered a chattel, meaning it is a tangible, movable personal possession. Chattels form part of the Estate and can be dealt with by the Personal Representative according to the terms of the will or the intestacy rules if there is no will.
A car can typically be sold before a Grant of Probate or Letters of Administration is issued, especially if the car’s value is relatively low. Although a car is a chattel, if its value is significant, or there is a specialist vehicle or collection, the buyer may require sight of a Grant of Probate, but this is the exception. In any event the Personal Representative should ensure it is appropriately insured, secured, and valued before sale, transfer, or disposal as part of the estate administration process.
What happens if the car has Outstanding Finance or Lease?If the vehicle is subject to outstanding finance (e.g. hire purchase or PCP), the vehicle itself does not belong to the estate until fully paid off. Do not sell or transfer the vehicle until the finance issue has been resolved.
Handling a vehicle is part of the process and that’s why, when someone passes, it’s essential to ensure the vehicle doesn’t stall the estate administration.
Do you need help handling a loved one’s vehicle after death? For further information, or to discuss the issues raised within this article, please contact us to speak to a member of our Private Wealth and Inheritance Team.
