For many, the phrase “prized possession” automatically brings to mind an image of their car (or car collection). Increasingly, testators are choosing to treat those vehicles differently from their other assets when it comes to their estate planning, and making special bequests of their vehicles to someone for whom they have special significance.  If you are intending to incorporate special treatment for your car in your estate planning, the following should be considered.

What can be left in an Estate?

Any item of personal property, or “chattel” that you own can be left to a specific beneficiary in a Will. The obvious example here is the vehicle itself. However, rare car parts, mechanical tools, and even custom numberplates can be included in your Will as special bequests.

If you do not make specific bequest of an item in your Will, it will form part of your residuary Estate, and will be transferred to your residuary beneficiary/ies. For example, if you leave your entire estate to your spouse, they will automatically receive your vehicle/s.

What is required to transfer a vehicle from an Estate?

In order to process any transfer of a vehicle from an Estate, VicRoads must first ascertain that the person they are dealing with has authority to act. VicRoads requires:

1. a Grant of Probate; or
2. a Grant of Letters of Administration if the vehicle owner has died without leaving a valid Will; or
3. if the vehicle owner’s Estate is valued at less than $10,000, a Statutory Declaration by a close family member stating that there is no Grant of Representation and that they are entitled to represent the Estate.

You can make this process simpler for your beneficiaries by ensuring that you have a Will, so that a Grant of Probate can be obtained.

In most circumstances, the transfer of a vehicle from an Estate requires a current roadworthy certificate. In almost every case, the transfer of registration of a vehicle requires a current roadworthy certificate. If you intend to leave a vehicle to a specific beneficiary, you should consider whether you would like to also make provision for your Estate to pay the cost of the transfer, or whether you intend the cost to be borne by the beneficiary.

Matters to consider

As well as the vehicle itself, you should consider whether there are any other items that ought to be given to the recipient of the car. For example, if your vehicle is vintage and you also own out of print manuals for it, it may be worthwhile specifying that those manuals are to remain with the car. If any of your beneficiaries are enthusiastic but unknowledgeable, any literature you own on your area of interest may also make a thoughtful bequest.   

It is common for parents to wish to divide their estate equally between their children, but to leave their car collection to a child who shares their interest. You can balance these intentions and reduce the possibility of later disagreement by considering a mechanism for the vehicle to be valued, and included within one child’s share of your Estate.

If you have any questions relating to how your vehicles are dealt with in your Estate Planning, or if you wish to prepare a Will, please feel free to contact Pearce Webster Dugdales Lawyers.

Bree Ridgeway, Solicitor (03) 9614 5122 bridgeway@pearcewebster.com.au