Do You Need Probate to Transfer a Deceased Person's Vehicle in Ontario?

After a death, a family member often needs to drive, sell, insure or retitle the deceased person's car. You may wonder whether you must go through probate first or whether you can simply transfer it.

This article explains how vehicles fit into an Ontario estate, what the law says about their value, and how to plan. The exact paperwork required by the vehicle registration office or an insurer can change, so confirm it directly.

How a vehicle fits into the estate

A vehicle the deceased owned at the time of death is an estate asset. Estate Administration Tax is based on the value of all assets the deceased owned at death, and that includes vehicles and vessels wherever located.

Probate is not always required. The type of assets usually decides whether it is needed, and an estate normally must be probated if the deceased owned real property, or assets held by a financial institution, in their own name. A vehicle alone is not on that list, but a car is rarely the only asset, so look at the whole estate.

Who has authority to deal with the car

If there is a will, the estate trustee named in it usually applies for authority. If there is no will, the married spouse or common-law partner usually has first right to apply, followed by a close adult relative. The court may appoint the most appropriate relative.

Estate trustees wind up the deceased's affairs, pay taxes, bills and other debts, collect the estate assets, and distribute the residue to those entitled to it. Selling the vehicle is often part of that work. Whether the buyer, insurer or registration office wants to see a certificate depends on their requirements, so ask before you act.

Valuing the vehicle and any loan

Assets are valued at fair market value on the date of death, and the values must be supported by documents. For a car, that might be a dealer's opinion or a valuation guide printout kept with your records.

Only mortgages, liens and similar encumbrances on real property can be deducted, and only from that property's value. Vehicle debt, loans, credit card debt and lines of credit cannot be deducted from the estate value. So a car loan does not lower the value used for the tax.

Tax and reporting points to keep in mind

• For estates worth $50,000 or less, no Estate Administration Tax is payable, but if an estate certificate is issued the representative must still file an Estate Information Return.
• Above $50,000 the tax is $15 for every $1,000, or part of $1,000.
• The Estate Information Return is due within 180 calendar days after the certificate is issued.
• A deceased person is considered to have sold all capital property just before death, which can create a capital gain on the final return.

If the estate value is small, a simplified Small Estate Certificate process may apply for estates valued at $150,000 or less. Estates over that limit must apply for a Certificate of Appointment of Estate Trustee instead.

What to do next

• Find the vehicle ownership documents, any loan papers and the insurance policy.
• Do not sell or give away the car until you know who has authority to act.
• Ask the vehicle registration office and any buyer what documents they need for a death transfer.
• Get a date-of-death valuation and keep it.
• Add up the whole estate to see whether a certificate is needed.
• Talk to a lawyer if the will is unclear, there is no will, or family members disagree.

Frequently asked questions