Handling a Deceased Person's Car as Executor in Ontario

A car is often the first estate asset an executor has to think about. It may be parked in a driveway, still insured under the deceased's policy, and wanted by a family member who needs it right away.

What you can do, and what paperwork you need, depends on how the car was owned, whether there is a will, and whether you have your formal appointment yet. This article walks through the usual path in Ontario.

First steps while the car sits

Start by locating the car, the keys, the ownership and the insurance papers. Keep the vehicle somewhere safe and avoid letting anyone drive it until you have spoken to the insurer. Insurance terms differ from policy to policy, so ask the insurer directly what is covered after a death and for how long.

Costs of looking after the car, such as storage or insurance, may be paid out of the estate. An estate trustee who believes an expense is properly incurred in carrying out the trust may pay it from the trust property, or pay it personally and recover it from the trust property later. Keep every receipt.

ServiceOntario must be notified to cancel the deceased's driver's licence and accessible parking permit. A deceased person's accessible parking permit must be returned to ServiceOntario within 30 days. A refund of the driver's licence fee is claimed at a ServiceOntario centre using the Application for Refund of Driver's Licence Fee.

Transferring the car to a beneficiary

A vehicle may be transferred to a beneficiary of the estate exempt from retail sales tax if supporting estate documents are provided. Which documents depend on whether there is a will.

When the new owner registers the vehicle at ServiceOntario, proof of Ontario vehicle insurance is required. Licence plates may be transferred only between spouses, parents and children, using a plate transfer declaration. Procedures can change, so confirm the current steps with ServiceOntario.

If the car was jointly owned

If a vehicle is jointly registered to legally married spouses and one dies, the survivor can transfer it exempt from retail sales tax with only a death certificate, or a certified copy.

In all other joint-ownership cases, including common-law spouses, the surviving owner must provide the estate documents to show they are the legal beneficiary before the vehicle can be transferred exempt from retail sales tax. If you are a common-law partner in this position, plan for the extra paperwork early.

Selling the car or waiting for the certificate

Whether you can sell a car before you have a certificate of appointment depends on the facts, including the will and what the buyer and ServiceOntario will accept. A lawyer can confirm this for your situation. Without a will, the spouse or common-law partner usually has the first right to apply for the certificate, followed by a close adult relative.

If you sell, deposit the money into the estate account and record the sale. Under Ontario guidance, an estate is distributed once the assets have been liquidated and the funeral and burial expenses and any debts have been paid. A car given to a beneficiary is still a distribution, so do not hand it over casually if debts or taxes are still unresolved.

Vehicles are also counted when calculating Estate Administration Tax, whether they are in or outside Ontario. Note the car's value at the date of death for your records.

What to do next

• Find the ownership, insurance and keys, and speak to the insurer before anyone drives the car.
• Notify ServiceOntario about the licence and any accessible parking permit, and return the permit within 30 days.
• Check whether the car was jointly registered and, if so, with whom.
• Gather the will or the certificate of appointment, plus a trustee letter with the VIN, year, make and model.
• Keep receipts for insurance, storage and repairs paid for the estate.
• Ask a lawyer before selling or giving the car away if there is any doubt about debts, taxes or your authority.

Frequently asked questions