Inherited a classic car? Or perhaps you’re looking to give your own away? In this article, we go through your options so you can work out what’s best for you and your family – and avoid any speed bumps in the process.
It’s undoubtedly a difficult time for all involved when a family member passes away. The last thing you’re going to want to do is think about is legal implications. But these things are important, and we want to help make the process as smooth as possible for you.
If you’ve recently inherited a classic car and are ready to speak to us about classic car insurance today, you can contact our expert team by calling 0121 248 9229 or filling out the quote form further down the page.
If you’re just looking for more information at present, this article will cover the key things you need to think about when inheriting and/or transferring ownership of a classic car, including tax and insurance considerations.
Legal implications
Transferring ownership of a classic car
When inheriting a classic car in the UK, the process of transferring ownership involves several legal steps. Although the vehicle is categorised as ‘chattel,’ meaning it is a personal possession, the ability to legally transfer ownership or sell the car typically cannot commence until the probate process is complete. This process confirms the legal transfer of the deceased’s assets to their beneficiaries.
It is important to initiate the process of formally declaring your ownership of the car to the DVLA as soon as possible after inheriting the vehicle. Ensure you have essential information readily available, such as your relationship to the deceased and the date of their passing. This proactive step is vital for smooth ownership transition and compliance with legal requirements.
Insurance considerations
When someone dies, the deceased’s insurer will need to be notified to cancel the policy. The insurance company should be provided with the death certificate and a copy of the section of the will which details who the executors are so that the policy is cancelled with the estate’s permission.
There are a few options that you can do next:
- Option 1: If you’re the new owner of the vehicles and wish to drive them, you can take out a new insurance policy in your name.
- Option 2: If you’re not planning to drive the car anytime soon, or are still thinking about what you want to do with your new classic car, you don’t legally have to take out car insurance if it’s off the road – but you must let the DVLA know. This is done by submitting a Statutory Off Road Notification (SORN), which allows you to forego car insurance, as long as the car isn’t being driven at all.
Although not legally required to be insured if off the road, the vehicle can still be targeted by thieves and can be damaged. So we advise considering Laid Up Insurance so you’re able to claim for theft, fire and accidental damage that the vehicle sustains while laid up.
