It can be hard to sell a car that belonged to a person who has died. In this post, we explain how an executor will sell a car that belonged to a person who has died.
When a close friend or family member dies and you are put in charge of their estate, you probably feel many different things simultaneously.
Attempting to settle a loved one’s estate through probate is often fraught with stress, sadness, confusion, and frustration. Being an executor means juggling many tasks, like caring for the dead person’s things. This can include keeping and fixing things like real estate and antiques, making sure heirs get the inheritance they’re due, and selling assets if an estate needs to pay off its debts.
This is what you need to know about selling assets: As the executor, it’s your job to follow the will’s instructions and do what’s best for the beneficiaries and the estate. As executor, you are responsible for distributing assets according to the will. For example, let’s pretend the deceased had a specific person in mind when they bequeathed their car to them or that they co-owned a vehicle with a beneficiary. In that case, the executor distributes the car to the beneficiary.
However, if the asset is held solely in the deceased’s name, it can be dealt with in a way that benefits the estate the most. And if the estate has a lot of debt and you need to sell assets to pay it off, you can do that if there are no beneficiaries.
How To Sell A Car After Someone Has Died:
When there is no Will
It is referred to as an “intestate” death if the deceased had no will. Their estate still needs to be settled, though, and the probate court in the county or state where they lived at the time of their death will name an estate administrator, which is basically the same as an executor.
Most of the time, the next of kin of the person who died asks the court to be the administrator. Once an administrator has been chosen, that person will have to apply for probate and get letters of administration from the court. This will give them the legal right to settle the estate and sell any assets.
When there’s a will
If a will exists, the person named in the will as the estate executor must apply for probate by sending the choice, a copy of the death certificate, and a petition for probate to the probate court.
Once the court says yes to the petition, letters of testamentary will be sent to the executor. These papers will give the executor the legal right to get the car, take care of it, or sell it.
Once you have the administration or testamentary letters, you’ll need to get the car’s title and transfer it to you. If the person who died didn’t have this with their papers, you could ask the DMV or Ministry of Transportation for it.
You now have all the rights to the car. Then, as executor, you will have to do the following things before you can sell the car:
Stop paying for the car’s insurance. Your loved one probably had some auto insurance for the vehicle. Basic auto insurance is required in many places, so the first thing to do is cancel the policy. This is when those letters of administration or testamentary will likely come in handy since an insurance company might not let you cancel the policy on behalf of the dead person without them. You might also need to bring a copy of the death certificate.
Check to see if you still owe money on the car. As the executor, you’ll have to find out if your loved one still owes the car. The vehicle must have a clean title when you sell it. This means that there are no unpaid bills tied to the car. If there is debt, like an outstanding title loan, you will have to pay for it out of the estate of the person who died.
Finish the Deal
You are now prepared to sell. Remember that you must Sell The Car for what it’s worth on the market. Once you’ve found a buyer, you and the buyer will fill out a transfer of title agreement. The name of this agreement will depend on the state or country where the sale is taking place.
You’ll also have to show that you don’t owe any money on the car. For example, if the vehicle was used to get a title loan before, but the loan is now paid off, you should get a “release of lien” letter from the company that gave you the loan.
If the car is relatively new, you may also need a bill of sale signed by a notary. When a loved one dies, it can be hard to decide whether or not to sell the car. This is especially true if the heirs wanted to keep the car but weren’t named as beneficiaries or joint owners.
You don’t have to handle your loved one’s estate alone if you, as executor, are having problems managing the funds. At Tip Top Cash For Cars, our dedicated team of estate professionals can help you solve many estate settlement problems at a fraction of the cost of a lawyer. Contact us today to set up a free consultation and find out how we can help.
Call 0487 002 222.