Navigating Car Returns After a Bereavement

Bereavement is an incredibly challenging time, filled with grief and often a bewildering array of practical matters to address. Among these, managing a deceased loved one's vehicle can add a layer of complexity. This guide aims to simplify the process, offering clear, step-by-step advice for handling both Motability Scheme vehicles and privately owned cars in the United Kingdom following a death. Our goal is to provide you with the necessary information to navigate these procedures smoothly, ensuring compliance with all requirements while minimising your stress.

Understanding the distinct processes for different types of vehicles is crucial. A Motability vehicle, being leased, has a very different protocol for return compared to a car that was privately owned by the deceased. We will cover immediate actions, what happens to insurance and road tax, how to return or dispose of vehicles, and answers to common questions, helping you manage this aspect during a difficult period.

Handling a Motability Car After a Death

When the policyholder of a Motability Scheme vehicle passes away, the lease agreement concludes immediately. It's important to understand that the deceased's estate is not responsible for any outstanding lease payments from the point of notification. Motability has a specific and streamlined process to manage these situations, designed to be as straightforward as possible for the bereaved family.

Immediate Steps: Notifying Motability

Your first priority should be to inform Motability of the policyholder's passing as soon as reasonably possible. Prompt notification is key to initiating the return process and ensuring that all arrangements can be made efficiently. There are several ways to do this:

• Phone: You can call Motability directly on 0300 456 4566. This is often the quickest way to speak to a representative and get immediate guidance.
• Email: Send an email to [email protected]. This provides a written record of your notification.
• Online Form: Motability offers an online form specifically for reporting a customer passing. This can be a convenient option if you prefer to complete the process digitally.
• 'Tell Us Once' Service: If you use the government's 'Tell Us Once' service to report the death, it will automatically inform Motability on your behalf, among other government departments. This can significantly reduce the number of organisations you need to contact individually.

When you make contact, be prepared to provide the deceased's full name, date of death, the vehicle registration number (VRN), and your contact details as the person handling the return. This information will help Motability identify the account and begin the necessary procedures.

What Happens to the Lease and Financial Obligations?

As mentioned, the lease on the Motability vehicle ends immediately upon the policyholder's death. This means there are no further lease payments due from the estate. Motability will handle the cancellation of any remaining payments from the date of their notification, providing peace of mind during an already stressful time.

Temporary Use of the Motability Vehicle

Understanding whether the vehicle can still be used is a common concern. For up to two weeks following the policyholder's death, permitted drivers (those listed on the Motability insurance policy) are allowed to use the car. This grace period is intended to help the family manage the deceased's affairs, such as attending appointments or making necessary arrangements. During these two weeks, the vehicle remains insured under the Motability policy and is still taxed. However, it is crucial to note that after this two-week period, the insurance is cancelled, and the vehicle can no longer be legally driven. It must be returned to Motability promptly.

Arranging the Vehicle Return

Motability makes the process of returning the vehicle as simple as possible. They will:

• Schedule a free collection: Motability will arrange for the vehicle to be collected at a time that is convenient for you.
• Flexible collection points: The vehicle can be collected from various locations, including the deceased's home, a care facility, or a hospital.
• No dealership return: Importantly, the car must be returned directly to Motability, not to a dealership.
• Non-drivable vehicles: If the car is not drivable due to a fault or accident, Motability will arrange a tow truck for its collection.

Before the collection, ensure all Motability equipment is ready for return. This includes any fuel cards, which should be cut up and disposed of securely.

Insurance, Road Tax, and Adaptations on Motability Cars

The handling of insurance and road tax for a Motability car after death is different from a privately owned vehicle:

• Insurance: The Motability insurance remains active for two weeks after the death, allowing permitted drivers to use the car for the aforementioned purposes. After this period, the insurance is automatically cancelled, and the car cannot be driven.
• Road Tax: Motability manages the road tax directly. Upon notification of the death, Motability will inform the DVLA, ensuring the road tax is cancelled automatically. You do not need to declare the vehicle 'off-road' (SORN) or apply for a tax refund yourself.
• Fuel Cards & Adaptations: Any fuel cards associated with the vehicle should be cut up and disposed of. Motability-funded adaptations, which are features specifically installed by the scheme to meet the user's needs, remain with the vehicle when it is returned. If there were any privately funded adaptations (those paid for by the policyholder or family), you may be able to remove them. It is advisable to contact Motability directly to discuss options for privately funded adaptations.

Can a Family Member or Carer Keep the Motability Vehicle?

A Motability vehicle is leased, not owned, and therefore must be returned to Motability. It cannot simply be transferred to a family member or carer. However, there are alternative options:

• New Application: If a carer or spouse receives a qualifying mobility allowance, they may be eligible to apply for a new Motability vehicle in their own name. This would involve a separate application process.
• Private Purchase: In some rare circumstances, Motability may offer the family the option to purchase the vehicle privately. This is not a guaranteed option and would need to be discussed directly with Motability.

What Happens if the Motability Car Is Not Returned?

Motability will make multiple attempts to contact the next of kin or the person responsible for the deceased's affairs if the vehicle is not returned within the specified timeframe. If these attempts are unsuccessful and the car remains unreturned, Motability may ultimately reclaim the vehicle through a recovery service. To avoid any unnecessary complications during an already difficult time, it is always best to adhere to the return process promptly.

Dealing with Privately Owned Vehicles After a Death

For vehicles that were owned outright by the deceased, the process differs significantly from Motability cars. These vehicles form part of the deceased's estate and their handling falls under the responsibility of the executor(s) of the will or the administrator(s) of the estate.

Informing the DVLA About the Death

Just like with Motability, informing the DVLA (Driver and Vehicle Licensing Agency) about the death is a crucial step. The easiest way to do this is often through the government's 'Tell Us Once' service, which notifies multiple government departments, including the DVLA, simultaneously. If you have not used 'Tell Us Once', or if you prefer to contact the DVLA directly, the executor or next of kin should do so. The specific forms and procedures will depend on whether the original logbook (V5C) is available and what you intend to do with the vehicle (keep, sell, or scrap).

What Happens to MOT, Road Tax, and Insurance for Owned Cars?

The status of a privately owned vehicle's MOT, road tax, and insurance requires careful management:

• MOT: If the vehicle has a valid MOT certificate, it will remain valid until its expiry date. The death of the owner does not invalidate the MOT.
• Road Tax: The responsibility for taxing the vehicle falls to the new owner or, if the estate is still being administered, the executors. If the vehicle tax has been paid in full for a period extending beyond the date of death, the estate will typically receive a refund for any overpaid tax after ownership has been transferred or the vehicle has been disposed of. This refund will be added to the estate funds.
• Insurance: It is highly recommended to continue the vehicle's insurance, at least for third-party damage, fire, or theft, until the car is sold, transferred, or scrapped. This protects the estate from potential liabilities. The current insurance documents will contain all the details needed to arrange new insurance, if necessary, or to continue the existing policy under the executor's name until the vehicle's fate is decided. You can cancel the insurance once the sale or transfer of ownership is complete.

Arranging a Valuation for Probate

For probate purposes, especially if the vehicle is of significant value, you will need to ascertain its worth as part of the deceased's estate. Here's how you can get an idea of the value:

• Insurance Documents: The vehicle's insurance documents may provide an agreed value or an estimated market value.
• Online Search: Conduct an online search for similar vehicles currently for sale. Websites like Auto Trader or eBay Motors can give you a good indication of market prices for comparable models, age, and mileage.
• Local Dealership: For a more formal valuation, especially if you plan to sell the car to a dealership, you can arrange a valuation with them. Be sure to explain that the valuation is for probate purposes.
• Specialist Valuers: If the vehicle is of special interest, such as a classic car, a rare model, or a limited edition, it may be prudent to engage a specialist valuer. These experts can provide a more accurate assessment of its unique value.

The determined value of the vehicle must be included in the probate and inheritance tax papers, if applicable.

Keeping the Vehicle

If the vehicle is to be kept by a beneficiary named in the will, or by another family member, the ownership must be formally transferred. The new owner must notify the DVLA of the change of ownership. The specific forms required will depend on whether the original logbook (V5C) is available. The government website provides detailed guidance on what to do in this scenario. If the new owner does not intend to drive the vehicle on public roads, they can declare it 'off-road' (SORN - Statutory Off Road Notification) with the DVLA to avoid needing to tax and insure it for road use.

Selling the Vehicle

Selling the deceased's vehicle is a common option. The process will again depend on whether you have the logbook (V5C). The government website has information on the necessary documents and steps. Any money raised from the sale of the vehicle becomes part of the deceased's estate funds. Executors can be reimbursed from the estate for any reasonable costs incurred in arranging the sale, such as advertising or detailing expenses.

Scrapping the Vehicle

If the vehicle is old, significantly damaged, or has very little market value, scrapping it may be the most practical solution. You can take the car to an authorised treatment facility (ATF), which is a licensed breaker's yard. They will depollute and dismantle the vehicle, and you may receive a small payment for the salvage, which should be added to the estate funds. Some charities also deal with scrap and salvage, allowing you to donate any salvage fee to a good cause.

Frequently Asked Questions (FAQs)

How long can I keep a Motability car after the policyholder dies?

Permitted drivers can keep and use the Motability car for up to two weeks after the policyholder's death to manage affairs. After this period, the insurance ends, and the car must be returned to Motability.

Can I drive the Motability car before returning it?

Yes, but only for the two-week grace period. During this time, the car remains insured and taxed for permitted drivers. After two weeks, the insurance is cancelled, and driving the car becomes illegal.

What if a carer or spouse still needs a Motability car?

They cannot keep the deceased's vehicle. If they receive a qualifying mobility allowance, they must apply for a new Motability vehicle in their own name through the standard application process.

What happens if a Motability car is adapted?

Motability-funded adaptations remain with the vehicle when it is returned. If there were privately funded adaptations, you may be able to remove them, but you should contact Motability to discuss your options.

Do I need to notify the DVLA about a Motability car after death?

No, Motability handles this automatically as part of their process once you inform them of the death. You do not need to contact the DVLA for a Motability vehicle.

Does a privately owned car's MOT become invalid after the owner dies?

No, if a privately owned vehicle has a valid MOT certificate, it remains valid until its expiry date, regardless of the owner's death.

Who is responsible for taxing an owned car after death?

The responsibility for taxing a privately owned vehicle falls to the executor(s) of the estate or the new owner once the vehicle's ownership is transferred.

Should I cancel insurance immediately on an owned car after death?

It is strongly advised to maintain at least third-party insurance cover on a privately owned vehicle until it is sold, transferred, or scrapped, to protect the estate from potential liabilities.

Final Steps and What Should You Do Next?

Navigating vehicle arrangements after a death can be complex, but by following these guidelines, you can ensure a smoother process.

For a Motability vehicle:

• Call Motability on 0300 456 4566 or use their online notification service to inform them of the death as soon as possible.
• Arrange free vehicle collection at your convenience with Motability.
• Do not drive the car after two weeks from the date of death, as the insurance will be cancelled.
• Dispose of any fuel cards and ensure all Motability equipment is ready for return.
• If a carer or spouse needs a vehicle, advise them to apply separately for a new Motability vehicle if they are eligible.

For a privately owned vehicle:

• Inform the DVLA about the death, ideally through the 'Tell Us Once' service, or directly if you have the V5C logbook.
• Maintain insurance cover on the vehicle until it is sold, transferred, or scrapped.
• Assess the vehicle's value for probate purposes.
• Decide whether to keep, sell, or scrap the vehicle, and follow the appropriate DVLA procedures for transferring ownership or declaring SORN.

Remember, this guide provides general information. For specific legal guidance regarding the deceased's estate, particularly concerning probate or inheritance tax, it is always advisable to consult with a probate solicitor or legal professional. Taking these steps will help you manage the vehicle aspects during a challenging time, allowing you to focus on your bereavement.

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