How to Sell the Car of a Deceased Owner

If you’re wondering how to sell the car of a deceased person it starts with proving they’re dead. You must first obtain a death certificate, and possibly a court order. These verify your legal authority to sell the vehicle. Then you must prep the car for sale and list it for buyers. It’s important to handle each step carefully to comply with legal requirements, especially as the deceased’s estate goes through probate.

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Legal Requirements and Steps to Sell a Deceased Person’s Car

If you’re managing the estate of a decedent, there are many factors to account for with high-value items like cars. Let’s take a closer look at each of the steps involved in selling a deceased person’s car.

1. Locating the Will

The first step in selling a car of a deceased person is to locate their will. The will typically outlines the deceased person’s wishes regarding the distribution of their assets, including vehicles. If you are the executor of the estate, you have the authority to manage and distribute the assets according to the will. If there is no will, the estate will be handled according to state laws. This means a court-appointed administrator will make those decisions.

2. Obtaining a Death Certificate

After you’ve located the will, the next step is getting a copy of their death certificate. This document is essential for most administrative tasks, including transferring the car title and notifying the insurance company. To get one, check your state’s vital records department website. Most states have an online request form you can use, but may charge a small processing fee. If your decedent made arrangements with a funeral home, they may also be able to provide a copy.

3. Understanding Survivorship Rights

Survivorship rights play a significant role in selling the car of a deceased person. If the car was jointly owned, the surviving owner typically keeps the vehicle. Their survivorship rights override the will so the surviving owner can sell the car without going through probate. However, if the car was solely owned by the deceased, the vehicle must go through probate to transfer ownership.

4. Checking for Unpaid Loans

Once you’ve established ownership, it’s crucial to check for outstanding loans on the vehicle. Look for the most recent monthly statement from a lender. Or, you might have to contact them directly to verify the status of any loans and get the payoff amount required to clear the title. If the deceased person had an auto loan, the loan must be paid off before the vehicle can be sold. This might involve using funds from the estate or proceeds from the sale of the car.

5. Canceling Insurance

Canceling the deceased’s car insurance is another important step. It will prevent further premium charges and ensure that the estate is not held responsible for unnecessary expenses. To cancel, you need to contact the insurance company to inform them of the policyholder’s death. You’ll typically have to provide a copy of the death certificate and any other required documents.

Finding a Buyer and Preparing for a Sale

A mother and son selling the car of a deceased relative.

Once the legalities are handled, prepare the car for sale. Ensure that the vehicle is clean, in good working condition and has all necessary maintenance records.

Only after all of the above can you really start advertising the car to find a buyer through private sale. Use online marketplaces, local classifieds, and social media to reach a wide audience. Be transparent about the car’s history and ownership, especially if there have been any issues after the decedent’s passing. Once you have found a buyer, complete the sale by signing the necessary paperwork and handing over the keys.

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How to Transfer a Car Title After Death

If the deceased had a will or trust, the process of transferring the car title is generally straightforward. The executor of the will, or the trustee named in the trust, handles the deceased’s assets including the car. The executor will need to gather essential documents, such as the death certificate, the will, and the car’s title. They must then visit the local Department of Motor Vehicles (DMV) or equivalent office and submit these documents. They will also complete any required forms to transfer the title to the new owner. If the car is bequeathed to a beneficiary, it may be considered a gift, depending on the terms of the will.

If the deceased did not have a will or trust, the process becomes more complicated. In such cases, the car is part of the estate. This means it will go through probate, a legal process for settling the estate. The court will appoint an administrator to manage the deceased’s assets. In addition to the standard title transfer paperwork, the administrator also needs to provide proof of their legal authority to transfer the title, typically through a court order. The DMV will then transfer the title to the person legally entitled to inherit the car, as determined by state law.

A car becomes a gift when passed directly to a primary or secondary beneficiary named in a will or trust. This is often the case when the deceased has specifically designated a person to receive the car. For the beneficiary to claim the car, they will need to present the necessary documents to the DMV. This includes the death certificate and proof of their status as the beneficiary. The DMV will then update the car’s title to reflect the new owner.

Who Transfers the Title for a Deceased Person’s Car?

The first step in transferring the title of a deceased person’s car is identifying who is legally responsible. Typically, this falls to the executor of the estate or a court-appointed administrator, usually a close family member. After settling any debts and completing the necessary forms, the executor or administrator can submit the paperwork to the DMV. The DMV will then issue a new title in the name of the estate or, in the case of sale, the new owner. It’s essential to keep a copy of all documents submitted for future reference.

If the decision is to sell the car, the process involves additional steps. The executor must first transfer the car’s title to the estate. Then the estate sells the car by providing the buyer with the signed title, bill of sale, and any other required documents.

How Long Can Probate Take?

Generally, probate can take between six months to a year to complete, but this timeline can extend based on the complexity of the estate, the efficiency of the executor, and the backlog in the court system. Larger estates with multiple assets and numerous beneficiaries typically require more time to settle, while simpler estates move more swiftly.

Probate also moves much faster if the deceased left a will. A clear and uncontested will prevent disputes among heirs that can cause significant delays. Additionally, the state of residence can impact the timeline due to different probate laws and court procedures. Some states have streamlined processes for small estates that can reduce the duration considerably. Executors should familiarize themselves with the specific probate laws in their state to understand potential delays.

State laws can significantly impact how to sell a car of a deceased person. Each state has its own set of probate regulations, which can affect both the duration and the steps involved in the process. For example, some states require the car’s title to be transferred to the estate’s name before it can be sold, while others might allow a direct transfer to the buyer. Executors should check with their state’s DMV or a legal professional to ensure compliance with local laws.

What to Do If the Car Is Worth Less Than You Think

Not every car in an estate is worth the trouble of a private sale. Plenty of people pass away owning a 12-year-old sedan with 150,000 miles on it, a check engine light and a tear in the driver’s seat. That car might bring $2,500 from the right buyer, but finding that buyer takes time, and time costs the estate money. Before going down the private sale road, a quick look at Kelley Blue Book or a similar tool can give the executor a realistic starting point.

When the numbers are low, selling to a dealer or an online car buying service is often the simpler path. The offer will be less than what a private buyer might pay, but the transaction can be done in a day or two with minimal back and forth. For an estate that is already dealing with legal paperwork, creditor claims and beneficiary questions, getting the car off the list quickly has real value. That goes double if the estate is still paying insurance on it every month.

Donating the car is worth a look too. If the vehicle goes to a qualified charity, the estate may be able to take a tax deduction based on the car’s fair market value or what the charity sells it for. For a low-value car in rough shape, that deduction can sometimes do more for the estate than a cash sale would. Most charities that accept vehicle donations will handle the pickup and paperwork as well. And for a car that flat out does not run, a salvage yard or junk car buyer is probably the right call. They will typically offer a few hundred dollars, tow the vehicle themselves and not ask questions about the condition.

Hidden Costs

Things get more complicated when the car is worth less than what is owed on it. If the deceased had an auto loan with a payoff balance higher than the vehicle’s market value, the estate has to decide how to handle the gap. That might mean paying the difference from other estate funds, working something out with the lender, or in some cases letting the lender take the car back. Executors should not assume every vehicle in the estate is a net positive.

Carrying costs are easy to miss but they add up. If probate drags on for six months or more, the estate could be paying insurance, registration, and even storage on a car that is losing value the whole time. Those are dollars coming out of what the beneficiaries eventually receive. It is worth doing the math early. If the expected sale price barely covers what the estate will spend keeping the car in the meantime, a faster option starts to look a lot more appealing.

Bottom Line

A woman inspecting a car before selling it.

Selling a car of a deceased person involves several steps to ensure the process is legal and smooth. To sell the car of a deceased person you will need to locate the will, obtain the death certificate, review survivorship rights, check for unpaid loans, cancel insurance, and then find a buyer. When you finally transfer the title, make sure that all paperwork complies with your state’s regulations to avoid legal complications or tax liability.

Tips on Estate Planning

Probate can hold up the distribution of your assets for as long as a year. But an estate plan can help your heirs avoid this delay. A financial advisor can guide you in planning your estate, and managing your wealth. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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