How to administer a deceased estate is an easy process that is best performed by close relatives or beneficiaries of the deceased estate.
If the deceased estate has business assets, overseas assets or the Will has complex instructions you will need to consult with a lawyer. Please note that when hiring a lawyer, you can hire them to provide information, perform specific tasks and check what you have done. You do not need to hire a lawyer for the entire process.
However, the vast majority of deceased estates are not complex and you do not require a lawyer to administer a deceased estate. If you hire a law firm to administer a deceased estate it will cost thousands of dollars in legal fees.
What is a Deceased Estate?
In law, when a person dies, a trust is automatically created in the name of the deceased person. The trust owns the deceased persons estate – their assets and debts.
The trust is referred to as “The Estate of the Late <deceased’s name>”. If the deceased person had a Will the estate is appointed an Executor named in the Will. If there is no Will the closest relative can apply to the Court’s probate registry to become the Administrator of the deceased estate.
The Executor/Administrator of the Estate has the responsibility to take control and secure all the property and personal belongings of the deceased, pay debts and distribute the estate to the beneficiaries.
What is an Executor?
An executor is the legal personal representative of a deceased person. The Will appoints an executor to administer a deceased estate upon his or her death.
The appointment of an Executor is only effective following the death of the Will maker. Once he or she has died then if you are appointed by the Will as executor you should decide very quickly whether or not you wish to accept the position. You are under no legal obligation to do so. If you don’t want to act as an Executor you will need to “renounce probate”. The testator may have discussed the appointment with you but frequently the Executor is unaware of the appointment until death.
What is an Administrator?
When a person dies without a Will then the legal personal representative is known as “the Administrator”.
The Role of the Administrator
The role of the Administrator is the same as an Executor, to administer a deceased estate. However, there is no Will providing instructions as to how distribute the estate to the beneficiaries. An Administrator has the right to deal with the deceased’s estate according to the rules of intestacy.
The Grant of Letters of Administration of the deceased’s estate is a court order making all the deceased’s assets become vested with (become the property of) the Administrator. For example, if the deceased held shares in a company, upon seeing the grant from the court, the company will register the Administrator as the shareholder in place of the deceased. This will enable the Administrator to sell the shares and distribute the proceeds in accordance with the intestacy rules. The Court confirms the legal authority of the Administrator to deal with the deceased person’s estate. This will satisfy those institutions who hold the deceased’s assets that the Administrator has the authority to deal with those assets and will give the administrator some protection from liability in dealing with the estate.
The basic procedure, common to all organizations, is to make contact (in person or writing) with the organization and request their procedure for transferring the assets in the Administrator’s name. You will need to complete some forms to identify yourself (you will need your ID such as driver’s license and passport), provide a copy of the death certificate, copy of Grant of Probate or Letters of Administration and instruct the organization where to transfer the funds.
If you hire a law firm to act as Administrator/Executor all they do is write to the organizations (banks, etc.) to inform them of the deceased person and enquire as to how to close the account(s) and transfer the funds to their trust account.
Process to Administer a Deceased Estate
1. Communications
The first step of the Executor/Administrator to administer a deceased estate is communications with relatives.
In consultation with family members, contact all relatives to inform them of the deceased’s passing and notify funeral arrangements.
There may be Government Departments /Agencies that you will need to inform of the deceased’s death (e.g. Social Security, Tax Office/Inland Revenue, Veteran Affairs, etc).
2. Death Certificate
The Executor/Administrator is responsible to obtain a death certificate for the deceased. This is usually handled by the funeral director. The certificate will be required to administer a deceased estate, apply for probate and deal with financial institutions and government agencies.
3. The Will
The Executor/Administrator needs to locate and secure the last Will & Testament of the deceased. Usually you find the Will at the deceased’s home or with their lawyer. The Will contains the instructions as to how to administer a deceased estate and dispose of the deceased’s estate.
4. Determine the Executor or Administrator
The Executor is named in the Will. There may be more than one person named as Executor in which case the Executor’s duties can be shared or one or more persons may renounce their right to be Executor.
If the named Executor(s) renounce their right to be Executor, the family member, first in line under the rules of intestacy, can apply to the Court to be recognised as the Executor of the Will. When the family member, first in line under the rules of intestacy, does not want to become Executor the relative second in line, and so forth, can apply to become Executor.
If there is no Will the relative first in line can apply to the Court to be recognised as the Administrator of the estate. When the relative, first in line under the rules of intestacy, does not want to become Administrator the relative second in line, and so forth, can apply to become Executor.
The application to the Court to become Executor/Administrator is part of the Probate Application.
5. Identify Beneficiaries & Interested Parties
The Will documents all beneficiaries who have an interest in the estate. There may be beneficiaries who are not natural persons such as charities or medical research institutions. There may also be other parties who have an interest in the estate such as creditors and the tax office/inland revenue service.
The following circumstances may occur – there is no valid Will, the Will does not fully dispose of all discovered assets, named beneficiaries are deceased or the estate is intestate (no Will). The Executor/Administrator needs to identify all potential beneficiaries of the deceased estate in accordance with the rules of intestacy.
6. Funeral Arrangements
Generally, the Executor of the Will or Administrator organises the funeral for the deceased in conjunction with the wishes contained in the Will and/or the wishes of the family members.
Please consult a funeral director.
7. Secure the Deceased’s Property
The Executor or Administrator of the Estate has the responsibility to administer a deceased estate.
Take control and secure all the property and personal belongings of the deceased.
The Executor/Administrator should hold all keys to property and motor vehicles ensuring insurance policies are maintained until the property(s) and motor vehicle(s) is transferred or sold. Motor vehicles must be stored in a secure location, preferably garaged.
The deceased’s residence may require removal of personal belongings and furniture which may be required to be placed in storage until distribution to relatives/beneficiaries.
The Executor/Administrator should secure all personal documents, such as:
- IDs – passports, driver’s licence, social security
- Investments, bank statements
- Taxation returns
- Insurance policies
- Medical records
- Receipts for assets
- Records of property, debts, etc.
After settling the estate, destroy the IDs or give them to the next of kin.
Note: it is important to secure the IDs and personal documents of the deceased as there has been a lot of identity theft fraud involving deceased persons. Criminals look for someone around their age who has deceased so that they can pass themselves off as the deceased person.
8. Service Cancellation
The Executor/Administrator should cancel all the deceased’s unnecessary services such as:
- Telephones, Internet, cable TV
- Electricity, Gas, Water
- Subscriptions & Memberships
- Health Insurance
9. Determine the Deceased’s Financial Position
The Executor / Administrator needs to administer a deceased estate by determining and documenting the deceased’s financial position at the date of death. This is a process of discovery of assets, liabilities, creditors’ claims, income and expenses. Compile a list all assets and liabilities, including the values.
Example Financial Position:
Statement of Assets and Liabilities
Assets
Bank Accounts 6,500
Furniture 10,000
Motor Vehicle 20,000
Real Estate 500,000
Pension Fund 100,000
Death Insurance 200,000
Liabilities
Credit Cards ( 1,500)
Mortgage on house (100,000)
Net Assets $735,000
Statement of Income and Expenses
Income (passive)
Interest
Dividends
Rental Income
Royalties
Expenses
Council Rates
Water Rates
Electricity
Telephone
Insurances
Interest on Debts
Personal Possessions (clothing, furniture and household items)
There is no legal requirement, apart from what is set out in the Will (if there is one), for the distribution of the deceased’s personal property (clothing, furniture and household items). Generally, personal items are difficult to sell and would not raise much money so it is better for the next of kin to take possession of the deceased’s personal property and distribute among themselves as they see fit to do so. If the deceased lived alone, the next of kin can arrange to remove all items from the house.
Most next of kin arrange to donate the deceased’s clothing and other low value items to charities.
Bank Accounts
The Executor/Administrator must write to all financial institutions where the deceased operated an account. The purpose of the letter is to notify the bank of the passing of the deceased and to identify yourself as the Executor/Administrator of the deceased’s estate. The bank will allow the deceased’s account to receive deposits but will not process withdrawals without a Grant of Probate/Administration.
Example of Letter to Bank
<Bank’s Name & Address>
Re: The Estate of the Late <deceased’s name>
Dear Sir,
I am writing to inform you that I, <your name>, am the appointed Executor/Administrator for the Estate of the Late <deceased’s name>, deceased, who died on <date of death>.
<deceased’s name> held a bank account and credit card with your bank.
Please provide instructions and forms for closure of the bank account & credit card.
Yours faithfully
<your name and address>
Real Estate
If the deceased was the sole occupier of a property, the Executor/Administrator should hold all keys to the property. Maintain insurance policies until you transfer or sell the property. The new owner or beneficiary is responsible for taking out a new insurance policy.
Motor Vehicles
The Executor/Administrator should hold all motor vehicle keys and ensure safe storage of motor vehicles. Maintain insurance policies until you transfer or sell the vehicle(s).
Business Interests
Contact the deceased’s Accountant for a valuation of the deceased’s business.
Liabilities of the Deceased Estate
The deceased may have debts, mortgages and other creditor claims. When a creditor claims a debt there must be written evidence to substantiate the claim that would be acceptable to a Court of Law.
The Executor/Administrator must organize to pay all debts first before any distribution to beneficiaries.
The Executor/Administrator may need to cancel insurances, electricity supply, gas, telephones, internet, cable TV and other services. This is easy to do over the phone or with a simple letter (attach a copy of the death certificate).
10. Probate Application to Administer a Deceased Estate
Refer to How to Probate a Will without a Lawyer
Whether you apply for probate, at the Court, depends on the value and complexity of the estate. If the value of the estate is very small then you may be able to avoid the probate process. However, if there are substantial sums of money (e.g.. more than $10,000) and high value assets such as real estate and incorporated businesses the Executor/Administrator will have to apply for probate.
Administer a Deceased Estate without Probate
When a deceased estate is small in value (typically under $50,000) and there are no property assets (ie. land or houses), no large sums of cash and no incorporated businesses you will be able to administer the estate without an application to the court for Probate. It doesn’t matter whether there was a Will or the deceased died intestate (no Will).
Financial institutions have varying rules which will allow access to the deceased’s accounts without a Grant of Probate or Letters of Administration if the estate is small. I recommend that you make an enquiry of the financial institution(s) regarding what is required to close the account and transfer the funds to the Estate’s bank account. Discuss this with the bank as each bank will have different limits for applying to close the account without probate. If the amount of money in the deceased’s bank account is more than the bank’s limit the bank will demand a court order so you will need to apply for probate.
Generally, if the amount of money is more than $5,000 the bank will require a Grant of Probate or Letters of Administration. This gives the bank assurance that the person claiming the funds is actually entitled in law to do so.
Note: The cost of obtaining a probate court order will typically be over $2,000. A small bank account balance less than $2,000 would not be worth claiming.
Who can become the Administrator of an Estate without Probate?
Generally, the holder of the original death certificate has the capacity to become the Administrator of the estate. This will normally be the closest relative and person who has witnessed and identified the deceased to the authorities (ie. hospital, police, funeral director, etc.). If there is a Will you must carry out the wishes contained in the Will, where practicable, to the best of your ability.
How to apply for Probate?
Contact or visit your nearest Court probate registry. The Court will give you a procedure to follow and an application form to complete. Most Courts have an online website containing information about how to make a probate application including application forms you can download.
Most Courts require you to advertise, in the local newspaper, your intention to apply for probate. This ensures that there are no other interested parties that wish to administer the estate or contest the Will. Some States and Countries require a notice of your intention to apply for a grant of probate/letters of administration must be published in one or two places no sooner than 14 days prior to the submission of the application. You may be required to place a legal notice in the local newspaper and in the Court Website/Law Reporter journal.
Check the public notice section of your local newspaper. You can copy the wording of an advertisement and change the names of the applicant and deceased.
Applications to the Court
Applications to the Court registry may be submitted by post or by attending the registry in person. The Registrar/Deputy Registrar or a Court clerk will act as your witness and accept the application.
There is a probate filing fee which can be based on the value of the estate (ask your Court registry). This is why you need to determine the financial position of the estate before applying for probate.
Some Courts require an inventory of assets and liabilities for the estate. This is mainly because the Court’s probate application fee is calculated on the value of the estate.
Allow 2 or 3 weeks from receipt of the application for straightforward grants of probate. More complicated cases may take longer.
The Grant of Probate/Letters of Administration is a certificate with the Court’s official seal.
You will be able to collect your certificate for grant of probate/letters of administration or have it mailed to you by registered post.
11. Open a Bank Account to Administer a Deceased Estate
Once you have probate, the Executor/Administrator should open a new bank account in the name of the estate eg “Estate of the Late <the deceased person’s name>”. The Executor/Administrator is the trustee of the bank account with the ability to deposit and withdraw funds.
The trust bank account holds funds in trust for the beneficiaries. Deposit all proceeds of the estate into the trust account. Pay all debts or expenses from the account and distribute the remaining funds to beneficiaries. It may be easier to open the estate’s bank account at the same bank as the deceased’s bank account.
12. Accounting for the Estate
The Executor/Administrator has a fiduciary duty to act honestly and fairly with the estate’s property and finances.
The Executor/Administrator must account for all the estate’s transactions by recording every receipt and disbursement of funds or property.
The estate’s bank statement will serve as a record of the cash transactions for the estate.
This is very important because beneficiaries, relatives and other interested parties may hold the Executor/Administrator accountable for their actions and require evidence of all transactions. The law provides penalties for not being able to account for the estate’s property or misusing the proceeds of an estate.
13. Realize Assets to Administer a Deceased Estate
Bank Accounts
The basic procedure, common to all banks, is to complete some forms to identify yourself (you will need your ID such as driver’s licence and passport), provide a certified copy of the death certificate, copy of Grant of Probate or Letters of Administration and a certified copy of the Will, if there is a Will, and instruct the bank to transfer the funds to the Estate’s bank account.
The bank will need to sight the original death certificate and original Grant of Probate or Letters of Administration or certified copies. If you have the originals the bank can make certified copies for you. There is almost always a Justice of the Peace working at a bank who can certify copies of documents.
The bank will close the deceased’s account and transfer funds to the estate’s account or give you a cheque, in the name of the Estate, for no charge (except the cost of the cheque).
If you allow a law firm to handle collection of funds from banks all they do is write to the bank to inform the bank of the deceased person and enquire as to how to close the account(s) and transfer the funds. Each bank has a similar procedure. The law firm will transfer the funds to their trust account and will not release the funds to beneficiaries until they have deducted their fees.
Note: I highly recommend you do not allow a law firm to close bank accounts as they will deduct their fees first and distribute the remainder. If you want to dispute the legal fees you won’t be able to as they would have already deducted their fees.
Personal Possessions
The Executor/Administrator will be able to collect all the deceased’s possessions including artwork, jewelry, furniture, clothing, personal effects, documents and records and distribute to beneficiaries as outlined in the Will or without a Will as you see appropriate according to the intestacy law.
Generally, many personal items are difficult to sell and would not raise much money so it is better for the next of kin to take possession of the deceased’s personal property and distribute among themselves as outlined in the Will or without a Will as the Administrator sees fit to do so.
Motor Vehicles
Dispose motor vehicles by the Will’s instructions. If no Will, dispose motor vehicles as you see appropriate according to the intestacy law. Usually it is easier to transfer the ownership of a motor vehicle to a beneficiary rather than try to sell the vehicle.
The Executor/Administrator will be able to complete a motor vehicle transfer form to transfer a motor vehicle to a beneficiary or the purchaser (if you are selling the vehicle).
The Roads and Traffic Authority, or your state’s equivalent, will not require a Grant of Probate but will need a copy of the death certificate, maybe a copy of the will, a letter from the executor, proof of identity, the certificate of registration and the completed application form to transfer the registration of the deceased’s vehicle to the Executor/Administrator or beneficiary.
Contact your Motor Vehicle registry for the transfer form and procedure. This is a simple process and you do not need a lawyer to complete this transaction.
The transferee shall take out a new insurance policy on a motor vehicle.
Real Estate
If the property market is weak for selling or the property is difficult to sell it may be better to rent the property for 12 months or longer until the property market improves. You will need to discuss this option with the beneficiaries.
The Land Titles Office/Land Registry in all States and Countries will always require a Grant of Probate or Letters of Administration if the home or land to be distributed under the Will is in the deceased’s name only.
If the deceased person owns property as a joint tenant, probate will not be required as the property will automatically revert to the other joint tenant (for example, the spouse of the deceased). You can complete a form to have the deceased joint tenant removed from the title. This is normally a requirement before selling a property as a deceased person cannot sell a property. At some stage, transfer the title from joint names, or solely in the name of the deceased, into the name(s) of the beneficiaries.
If the property has a mortgage it will need to sold unless a beneficiary(s) wants to take over the property with the mortgage. You need to contact the mortgagor (financial institution) and arrange this with the financial institution.
On the sale of the property repay the mortgage and release the title before passing the title to the new owner. The bank will help you organize this process.
Shares and Managed Funds
Generally, if shares are held in an account in the sole name of the deceased and valued at over $2000, the Grant of Probate will generally be required to release the shares for distribution by the executor. The executor should contact either the share registry or the company concerned to ascertain the number and value of shares held and whether the Grant of Probate is required for distribution. The share registry will give you the procedure and forms required to transfer the shares.
Managed funds will have a procedure and forms for handling deceased estates.
Insurance Policies
You will need to contact the insurance company concerned and enquire whether they require the Grant of Probate to release the funds to the Executor for distribution. Some types of policy will include provision for a named beneficiary in the event of the death of the policy holder and may therefore not be covered by the Will. In most cases, the trustee of the insurance fund will have the discretion to release the funds directly to the named beneficiaries or release the funds to “the estate” in which case they are subject to the distribution set out in the Will.
Retirement Funds
To claim the account balance of a pension/superannuation fund contact the fund and request an account closure form and instructions. The fund will require a Grant of Probate or Letters of Administration and the death certificate.
Some pension funds have a death benefit insurance policy so you will be able to claim the insurance payout.
In most cases, the trustee of the fund will have the discretion to release the funds directly to the named beneficiaries or release the funds to “the estate” in which case they are subject to the distribution set out in the Will.
Nursing Home Accommodation Bonds
In almost all cases, nursing homes that hold accommodation bonds will require a grant of probate or grant of letters of administration before releasing the bond to the executors. In many cases, the nursing home may transfer the bond to a bank account of the deceased, e.g. “The Estate of the Late <deceased’s name>” which is controlled by the Executor/Administrator.
Internet Assets
Check whether the deceased owned websites and/or products on the internet.
There may be an income stream from web-based businesses. The value of the websites may be worth a considerable amount of money depending on the value of the income. You will be able to transfer these assets to the Executor/Administrator and then either sell or transfer to beneficiaries.
Check the deceased’s bank accounts for deposits from internet businesses or payments to domain registries or website hosting companies. Check the contents of the deceased’s computer for website assets, e-books, digital products or other intellectual property.
If you don’t know anything about internet-based businesses you will need to contact an Accountant or IT professional that has knowledge in this area. Don’t bother with lawyers as they don’t possess the business or technical skills to manage an internet business.
Businesses
If you don’t know anything about businesses you will need to contact an Accountant for assistance. Your options are to continue the business, sell or liquidate the business. Depending on the Will, you may find that one or more of the beneficiaries want to take over the business and run it as a going concern.
14. Payout Creditors
The Executor/Administrator will be responsible for extinguishing all the deceased’s debts before final distribution of assets to beneficiaries. The Executor/Administrator will need to finalise electricity & gas supply, disconnect telephones, cancel credit cards, repay personal loans, etc.
The Administrator works out the order of assets to pay debts. In some cases this will be set out in the Will, otherwise there are laws which tell you which assets to use first. It is best to repay debts from liquid assets first (e.g. cash, investments) trying to avoid having to sell assets, such as real estate, below market values.
On sale of real estate, repay the mortgage and release the title before the transfer to the new owner.
15. Taxation
Upon death the deceased’s tax affairs become a trust with the Executor/Administrator acting as trustee.
The Executor/Administrator is responsible for filing the deceased’s final “date of death” tax return for the year ending when the deceased passed away. If the deceased’s personal tax affairs are simple you can complete the deceased’s last tax return yourself otherwise consult a tax accountant. A lawyer will not be able to complete this process.
Pay all tax debts from the deceased’s estate before the final distribution to beneficiaries.
If the deceased’s estate continues to earn passive income, for example, rent from a rental property or interest and dividends from an investment, the Executor/Administrator may have to lodge future tax returns for the estate until estate settlement. This requirement will depend on the taxation rates and thresholds in your country.
Note: Taxation of deceased estates is outside the scope of this post.
The final distribution to beneficiaries cannot be completed until all taxes are paid.
The Executor or Administrator will receive final settlement from the inland revenue/tax office.
Income Tax for Beneficiaries
Beneficiaries, who receive a distribution from a deceased estate, are responsible for their own tax obligations and are advised to seek advice from a tax accountant.
16. Distribution to Beneficiaries
The final step to administer a deceased estate is the final distribution to beneficiaries.
After the above steps have been completed the Executor/Administrator can make a distribution to beneficiaries according to the terms of the Will or the immediate family as outlined in the intestacy law.
The process of winding up the estate may take many months or even years depending on the complexity of the estate. It may take a long time to sell real estate and/or business assets. There may be assets overseas for sale and there may be an insurance claim to settle.
The Executor/Administrator should always hold back a provision of funds to cover final estate expenses and taxes.
Early Partial Distribution to Beneficiaries
Before final settlement of the estate and before complete realization of all assets the Executor/Administrator can make a partial distribution to beneficiaries. This is common with many estates as long as the Executor/Administrator reserves a provision of funds to cover final estate expenses and taxes.
Property Transfers
The Executor/Administrator may wish to transfer real estate to a beneficiary according to the terms of the Will. If the property transfer is simple, such as removing the deceased’s name from a joint tenancy or transferring the property to one beneficiary, the Executor/Administrator can perform this transaction at the land registry.
As property conveyancing is outside the scope of this post, I recommend you engage a lawyer to perform property conveyancing transactions.
If you need to transfer a land title, the Land Titles Registry will provide instructions and forms for all types of land transfers. The staff will not give legal advice but will help you regarding following the correct procedure for your matter. All you need to do is find out which procedure you need to follow.
Motor Vehicle Transfers
If you are Executor/Administrator for a deceased estate you are most likely going to be transferring a motor vehicle to a beneficiary(s) or selling the motor vehicle, repaying the finance and distributing the proceeds to beneficiaries.
Buying or selling a motor vehicle a very common transaction.
Register the transfer of the vehicle, to the new owner, at the Motor Transport Authority.
This is a simple process of following the Motor Registry’s instructions, completing a form and paying a fee, you won’t need a lawyer.
When you purchase a motor vehicle, lawyers will tell you that you need a lawyer to examine the contents of the contract of sale to ensure that there are no “hidden clauses” and “legal traps” that may cause later issues.
This is total nonsense and completely unnecessary as the contract of sale document is a standard document drawn up by the licensed motor traders’ association and used by thousands of car dealers every day. The law and governing body protects you when you contract with a licensed motor vehicle dealer. This protects you from the licensed dealer selling you a car still encumbered with finance or not road worthy.
For 99.9% of motor vehicle purchases from a licensed car dealer you do not need the services of a lawyer. This includes “trading in” or selling your car to a licensed dealer.
Selling your car to a private buyer
If you are selling your car to a private buyer, it is the buyer’s option to engage a lawyer to check the transfer document and contract of sale. Usually there is no formal contract of sale when selling your car to a private buyer (so a lawyer would have nothing to do anyway).
When selling your car privately there is a transfer form (from the Motor Registry) that both the buyer and seller need to complete. The buyer lodges the form at the Motor Registry.
If you are buying a car from a private seller then you need to read the procedure below. But you still do not need the services of a lawyer.
Procedure
Visit the Department of Transport Motor Registry (website, telephone or in person).
Acquire (or download) the transfer form(s) and instructions.
Complete the form in accordance with instructions for a sale and pay the transfer fee.
The form will require:
– name of the owner/transferor
– name of purchaser/transferee
– motor vehicle details
– reason for transfer eg sale
Motor Vehicle Transfers on Death
When a person has died it is generally very easy for a close relative to transfer the motor vehicle in to their name.
Procedure
Visit the Department of Transport Motor Registry (website, telephone or in person).
Acquire (or download) the transfer form(s) and instructions.
Complete the form in accordance with instructions for the death of a relative.
The form will require:
– name of the deceased
– name of transferee
– motor vehicle details
– reason for transfer eg deceased
Supply a copy of the death certificate.
There may be a small transfer fee. Usually the transfer due to death is exempt from stamp duty.
The motor registry issues a new motor vehicle registration certificate to the new owner.
Motor Vehicle Transfers on Sale
Private Sale
In most countries and states an automotive mechanic must examine the vehicle and issue a safety inspection certificate to be able to privately sell you vehicle. This is to protect the purchaser from buying a vehicle with serious mechanical problems.
Apart from the safety inspection certificate you can sell the vehicle any way you choose.
Sale to a Licensed Motor Vehicle Dealer
When selling your car to a licensed motor vehicle dealer you will not require a safety inspection certificate as the motor vehicle dealer will control the whole process.
The motor vehicle dealer will complete the appropriate paperwork (transfer forms) and all you will have to do is sign the transfer, hand over the keys and collect your payment.
Insurance Cancellation
After transferring a motor vehicle you can cancel the insurance policy.
Motor Vehicle Transfers on Purchase
Whenever you purchase a motor vehicle you are responsible to insure the vehicle before you drive it. Before you take delivery of the motor vehicle contact an insurance company and arrange motor vehicle insurance to cover you.
Purchase from a private person
Ensure the seller has a current safety inspection certificate issued from a reputable automotive mechanic.
Ensure the motor vehicle is not encumbered with Finance. Check with the encumbered vehicle register (the name will vary for each state or country) to ensure the car is not still registered as a security for a loan.
If you take possession of a car that is a registered security then the vehicle can be repossessed from you even though the loan is not your debt.
Purchase from a Licensed Motor Vehicle Dealer
The licensed motor vehicle dealer will complete all paperwork required by law. All you have to do is sign the contract of sale and the vehicle registration transfer form. Make your payment to the motor vehicle dealer and receive the keys to the vehicle. Make sure you arrange motor vehicle insurance.