When someone passes away, their assets, including vehicles, are typically managed through the probate process. This ensures that the estate is handled according to the law and the deceased’s wishes.
Can You Sell a Deceased Person’s Car Before Probate in Victoria?
The short answer is generally no. In most cases, you cannot legally sell a deceased person’s car before probate is granted unless you have the legal authority.
When a person dies, all their assets, including real estate, bank accounts, and vehicles, become part of their estate. The executor named in the will typically has the authority to manage these assets. However, this authority only takes effect once probate is granted. Selling assets like a car without probate can result in legal complications or disputes with beneficiaries.
The Dangers of Selling a Car Before Probate
Until probate is granted, the estate remains in legal limbo. Even if you are the appointed executor, you do not have the legal right to manage or dispose of any property until the court issues a grant of probate.
Attempting to sell a deceased person’s car before probate could lead to several legal issues, including:
- Potential disputes with beneficiaries: If other family members or beneficiaries feel that the car was sold prematurely or unfairly, they could challenge the sale in court.
- Legal complications with the buyer: The buyer may not be able to transfer the vehicle into their name without proper paperwork, including the probate documents.
- Unlawful sale: Selling the car without legal authority could be considered unlawful, making you personally liable for damages. The transaction could be deemed invalid and reversed.
How Long Does It Take for a Court to Grant Probate in Victoria?
In Victoria, probate is usually granted within 3 to 6 weeks after the application is lodged, although this timeframe can be longer depending on various factors.
The process starts with the executor preparing and submitting documents to the Supreme Court of Victoria, including the death certificate, the will, and details of the deceased’s assets and liabilities. The court reviews the application for any issues or objections, and if everything is in order, probate is granted. Delays can occur if:
- The will is contested.
- Errors are found in the application.
- There are complexities in the estate requiring further investigation.
Until probate is granted, the executor cannot legally manage or distribute the estate’s assets, so it’s important to start the process as soon as possible.
What About Joint Ownership of a Car?
An exception exists if the car was jointly owned by another person, such as a spouse. In this case, the surviving joint owner generally becomes the sole owner automatically, and probate isn’t required to transfer ownership.
For example, if a married couple jointly owns a car, and one spouse passes away, the surviving spouse can transfer the vehicle into their name without requiring probate. However, this only applies to vehicles registered in both names at the time of death.
Transferring Ownership After Death
Once probate is granted, the executor can legally transfer the car’s ownership. In Victoria, here’s what the executor must do:
- Notify VicRoads: Inform VicRoads, which handles vehicle registrations in Victoria, of the owner’s death so they can update the records.
- Provide the Necessary Documents: The executor must supply:
◦ A certified copy of the grant of probate (or letters of administration, if applicable).
◦ A certified copy of the death certificate.
◦ The completed Transfer of Vehicle Ownership form.
◦ Proof of the executor’s identity. - Settle Any Debts: If the car is under finance, the outstanding loan must be paid from the estate’s funds before transferring or selling the vehicle.
- Sell or Transfer the Vehicle: Once all documentation is in order and debts are settled, the car can be sold or transferred to a beneficiary. If sold, the proceeds become part of the estate and are distributed according to the will or intestacy rules.
An Example of a Car Sale Process After Probate
Let’s say John passes away, and his will names his daughter Emma as the executor. John owned a car, which Emma wants to sell to cover some of the estate’s costs. Before she can sell it, Emma must apply for probate. Once probate is granted, Emma notifies VicRoads, provides the required documents (including probate and the death certificate), and then transfers the car to a buyer. The sale proceeds are added to the estate and distributed according to John’s will.
Special Considerations: Intestacy or Lack of a Will
If the deceased person did not leave a will (intestate), Victorian intestacy laws apply to divide the estate. No one automatically has the right to sell or transfer the car until someone applies to be the estate administrator by seeking letters of administration from the court. Once granted, the appointed administrator can sell or transfer the car using the same process described above.
Handling a Deceased Person’s Car Responsibly
In Victoria, selling a deceased person’s car before probate is usually not permitted, except in cases of joint ownership. Probate ensures that the estate is managed per the law and the deceased’s wishes. Selling assets prematurely can lead to legal complications. Executors should wait for probate to be granted before selling or transferring the deceased’s vehicle to avoid disputes and ensure the estate is properly handled.
If you’re unsure of your legal rights or responsibilities regarding a deceased person’s car, it’s always advisable to seek professional advice from a solicitor who specialises in wills and estates in Victoria. They can guide you through the probate process and ensure everything is done correctly.
Get Expert Help With Probate and Estate Administration
Navigating probate and administering an estate can feel daunting, but you don’t have to do it alone. At Campus Lawyers, we specialise in probate and estate administration, offering clear and practical guidance every step of the way. Whether it’s a straightforward estate or a more complex matter like intestacy, we can help ease the burden through:
- Obtaining Probate
- Administering Estates
- Contesting Wills, Family Trusts and Estate Disputes & Litigation
- Other Legal Needs On Wills & Estates and Property Law
Our team ensures everything is handled efficiently and in compliance with Victorian law. Let us help you simplify the legal process, so you can focus on what truly matters. Reach out to us today for professional, experienced support.