How To Sell Car Of A Deceased Person

Losing a loved one is a sensitive and a hugely emotional topic. It is a treacherously confusing and challenging time for everyone involved. Things become excruciatingly tougher when you have to part ways with the deceased person’s belongings. It is a time when no one would like to even think about any pending legal and financial matters. But sadly these can't be neglected for long. There comes the time when you finally plan on selling a deceased person's car.  Selling a car after bereavement can also be a difficult thing to do logistically.

Finding a buyer or a dealer for such a deal might take more effort than usual. If you need to sell car of a deceased owner, you will be required to know the laws surrounding this type of a deal. These laws are designed to determine the future of the deceased person's belongings. Following are some of the universally accepted basics of the same:

1. Legal Authority For Selling A Deceased Person's Car

The foremost thing one needs to figure out is to know who has a legal authority to handle the transaction after the death of the owner of the car. This is mostly cleared by way of the deceased person’s will. The estate of the deceased is distributed among the rightful heirs as per the will. If you wish to sell car of a deceased person, this is the first place where you should put your claim for it. Once you become the executor of an estate, you will receive a letter of authority from the court letting you act on behalf of the estate.

It is advisable you obtain a few copies of these letters and as well as copies of the death certificate. These will come in handy in case anyone questions upon the authority of your act.

2. Title

Mostly it will not be necessary to change the title on the car when you take on the task of selling it for the estate. This also helps in streamlining the entire car selling process.

3. Clear Bank Loans Before You Plan To Sell Car

One thing you need to find out at the earliest is if the car has a loan. In this case, you will have to pay off the remaining amount before selling the car. For this, you will have to contact the respective bank or finance company.

Then you need to identify yourself as the executor of the estate and clarify the remaining amount which is needed to clear off the loan. You can clear off the dues via the estate funds along with the testamentary letters and a duplicate death certificate. Once it is done, remove the hypothecation from the RC card through the local RTO.

4. Insurance:

In almost every case, you will have to cancel the insurance on the car. You will have to submit the copy of the death certificate and letters testamentary. If the car is financed, as explained above, you will have to obtain an NOC or a No Objection Certificate from the finance company releasing the lien before it will cancel insurance.

You will also have to find out if the estate is eligible for any refund for any unused premiums, in which case the insurance company will issue a refund made out to "The Estate of …" and the name of the deceased. As a legal holder of the right to execute decisions on behalf of the estate left by your loved one, you will be able to deposit this check obtained from the insurance company in a bank account on behalf of the estate. We hope this would be helpful in your time of mourning. But we still recommend you to take legal advice on every issue before you go ahead on anything. If you want assistance, do get in touch with any of our branches by taking an appointment for the 

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