Today’s blog was written by Jessica Butler, Law Clerk at Fasken LLP.

When administering an estate, certain assets frequently come into play: bank accounts, a home, and often, at least one personal vehicle. While a Will typically outlines the transfer of a vehicle to a specific beneficiary, there are instances where the vehicle becomes part of the estate’s residue. There is a wealth of information available online about this topic, and at times, it may seem contradictory. As with some other estate administration tasks, your experience may vary. This blog summarizes the information that I generally know to be accurate in Ontario.

So, what steps should an executor in Ontario take to manage a vehicle in such cases? Let’s explore.

Probate and Vehicle Transfers

The good news is that, if the deceased left a valid Will, a certificate of appointment of estate trustee (“probate”) is generally not required to transfer a deceased person’s vehicle in Ontario, as the Executor’s authority comes directly from the Will. The Executor named in the Will can transfer ownership from the deceased to a buyer.

However, under intestacy (when there is no Will), the individual entitled to act as the administrator will likely need to obtain a certificate of appointment to confirm their authority to transfer the vehicle.

There are three primary methods for transferring a vehicle in Ontario: transfer to a beneficiary, private sale to a third party, or sale via a car dealership.

Transferring to a Beneficiary

As set out in greater detail in this prior AllAboutEstates blog, the transfer of a deceased person’s vehicle to a beneficiary is a similar process to transferring the ownership of a vehicle to a family member as a gift.

The Executor will need to attend in person at ServiceOntario with the following documents:

• A notarized copy of the Will, to prove the bequest of the vehicle to the beneficiary
• The death certificate
• Vehicle ownership permit
• Personal identification
• Proof of insurance
• Safety Standards Certificate (not required if the vehicle is being transferred to the deceased’s spouse)
• Sworn Statement for the Transfer of a Used Vehicle in the Province of Ontario
• Plate transfer declaration (if also transferring license plates)

The payment of retail sales tax is not applicable on the transfer of a deceased’s vehicle to a named beneficiary in the Will or on the transfer of a vehicle to family members as a gift.

Selling Privately to a Third Party

In Ontario, the seller of a used vehicle must provide the buyer with a Used Vehicle Information Package (UVIP). This requirement does not apply when transferring ownership to a beneficiary under a Will.

A UVIP can be obtained online or in-person at ServiceOntario for $20.00, which is an expense of the estate. While you can obtain the UVIP at the time of sale, it is recommended to do so beforehand. The Executor should carefully review the UVIP to ensure there are no liens or loans registered against the vehicle (these would be liabilities of the Estate and would need to be satisfied prior to selling the vehicle).

To complete the sale, the Executor may be asked by the buyer to provide the following documents:

• A notarized copy of the Will
• The death certificate
• Vehicle ownership permit
• Personal identification
• Proof of insurance

Once the UVIP is obtained, the Executor must provide the buyer with:

• The Bill of Sale (the bottom of the UVIP functions as a Bill of Sale)
• The Application for Transfer (found on the back of the vehicle ownership permit, under the vehicle portion, to be completed and signed by the Executor)
• A Safety Standards Certificate (obtained from a Motor Vehicle Inspection Station – most auto repair shops are licensed for this)

The buyer must then register their name as the new owner within six days of the purchase. The buyer must also pay sales tax (to ServiceOntario, not the Executor/seller) when they register as the new legal owner of the vehicle.

The Executor should deposit the sale proceeds into the Estate bank account and maintain records of all transactions, including the UVIP purchase receipt, a copy of the Bill of Sale, and documentation of how the fair market value of the vehicle was determined.

Selling via a Dealership

Selling a vehicle through a dealership can be a less cumbersome process. A UVIP is not required, and most dealerships handle the necessary paperwork for the vehicle transfer. A dealership should review the vehicle’s history to ensure there are no liens or loans, but as Executor it is prudent to confirm this information yourself.

The Executor should ensure they bring the following documents to the dealership:

• A notarized copy of the Will
• The death certificate
• Vehicle ownership papers
• Personal identification
• Proof of insurance

Summary

In both private and dealership sales, it is crucial to keep detailed records of all transactions. Ensure there are no liens or loans on the vehicle and track the flow of proceeds into the Estate bank account. This documentation is vital for providing transparency to beneficiaries and ensuring the best value is obtained for the estate.

By following these steps, Executors can efficiently manage the transfer of a vehicle as part of an estate, ensuring compliance with Ontario regulations and fulfilling their fiduciary duties.