To transfer a vehicle title after the owner dies in Newfoundland and Labrador, the executor must bring the original vehicle registration, a copy of the Death Certificate, and the Last Will to the Motor Registration Division (MRD). If the vehicle goes to an immediate family member, they are generally exempt from paying the 15% Retail Sales Tax.
When a loved one passes away, figuring out what to do with their everyday belongings can be surprisingly complicated 😔. One of the most common issues families face is transferring the ownership of the deceased person’s car or truck. You cannot simply hand the keys over to a family member and let them drive away; the provincial government requires a formal transfer of the legal title to ensure proper insurance and liability coverage.
In Newfoundland and Labrador, the Motor Registration Division (MRD) handles all vehicle transfers . Whether the vehicle is a sedan parked in St. John’s, a pickup truck in Grand Falls-Windsor, or a snowmobile in Labrador, the legal process remains the same. Fortunately, transferring a vehicle is often much faster and simpler than dealing with real estate or complex investments, provided you have the correct estate paperwork in hand.
Step-by-Step Process for Vehicle Transfer in NL
The executor named in the will is the only person legally authorized to sign the transfer documents on behalf of the deceased owner 🤔. Here is the exact path you must follow.
Step 1: Locate the Necessary Estate Documents
Before heading to the MRD, the executor must gather the official proof of their authority . You will need a certified copy of the Death Certificate (issued by Service NL) and a notarized copy of the Last Will and Testament naming you as the executor. If there is no will, you must first obtain “Letters of Administration” from the Supreme Court of Newfoundland and Labrador.
Step 2: Find the Original Vehicle Registration
You must locate the original green vehicle registration permit that belonged to the deceased 📋. The executor must sign the back of this document in the “Seller” section. You should also draft a standard Bill of Sale. Even if you are gifting the car to a family member for zero dollars, a written Bill of Sale signed by the executor is required by the registry.
Step 3: Secure New Auto Insurance
In Newfoundland and Labrador, it is completely illegal to drive or register a vehicle without valid insurance . The deceased’s auto insurance policy automatically becomes void shortly after their death. The person receiving the vehicle (the new owner) must contact their insurance broker and set up a new policy in their own name before attempting to register the vehicle.
Step 4: Check for Existing Car Loans
If the deceased was still making payments on the car, the lender (the bank or dealership) holds a legal lien on the vehicle 💰. The estate must either pay off the remaining loan balance in full or the new owner must officially assume the financing agreement. The MRD will not transfer a title if there is an active, unresolved lien on the vehicle.
Step 5: Visit the Motor Registration Division
The executor and the new owner should visit a local Service NL / Motor Registration Division office together . Hand over the signed registration, Death Certificate, Will, Bill of Sale, and proof of new insurance. The clerk will process the paperwork, cancel the deceased’s plates (or transfer them if applicable), and issue a new registration permit to the beneficiary.
How Much Does it Cost in Newfoundland and Labrador?
Transferring a vehicle involves a few administrative fees, but the biggest financial hurdle is usually taxes 💵. Here is a breakdown of what you can expect to pay in CAD:
| Service / Expense Type | Estimated Cost (CAD) |
|---|---|
| Vehicle Transfer Fee (MRD) | Typically $14 – $50 (Depending on vehicle class) |
| Notarizing the Will | $30 – $75 |
| Retail Sales Tax (HST) – Family | Exempt ($0) for spouses, parents, or children |
| Retail Sales Tax (HST) – Non-Family | 15% of the vehicle’s wholesale blue book value |
The tax exemption is a crucial benefit in NL. If the executor transfers the vehicle to a direct, immediate family member (like a widow or a son), they do not have to pay the 15% tax. However, if the car is willed to a friend or sold to a stranger, that person must pay 15% tax on the vehicle’s value at the MRD desk.
How Long Does the Process Take?
If the deceased left a clear Last Will and the car has no outstanding loans, the actual transfer at the Motor Registration Division takes only 15 to 30 minutes at the counter ⌛. However, if the person died without a will, the family must wait for the Supreme Court to issue Letters of Administration, which can delay the vehicle transfer by 2 to 4 months.
Frequently Asked Questions (FAQ)
Can I drive the deceased’s car before the transfer?
It is highly risky and generally not recommended. The deceased’s insurance policy may not cover you in the event of an accident. You must contact the insurance company immediately to confirm if the policy can be temporarily extended, but usually, the vehicle should remain parked until the title and insurance are transferred.
What happens to the deceased’s license plates?
In Newfoundland and Labrador, license plates generally remain with the owner, not the car. However, if the vehicle is being transferred to a surviving spouse, the MRD will usually allow the spouse to keep the existing plates. Otherwise, the executor must return the old plates to Service NL.
Do I need a formal probate document just for a car?
If the estate is very small and the car is the only major asset, the MRD will often accept a notarized copy of the Last Will and an Affidavit of Execution, waiving the need for expensive, formal Supreme Court probate. You should call your local MRD office to confirm their exact requirements.
What if the car was owned jointly?
If the vehicle registration specifically lists two names connected by an “OR” (e.g., John OR Jane Doe), the surviving joint owner can usually transfer the vehicle solely into their name simply by presenting the Death Certificate to the MRD, without needing the executor.
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