Will I have to "buy" our car from my 3 year old after the death of my partner?

DistantDez

Hi,

My partner passed away a few months ago and we own a car that was in his name. I transferred ownership of the car into my name not long after he passed away.

After doing the inheritance tax return I've realised that the car forms part of his estate and therefore as we weren't married and he didn't have a will, it doesn't really belong to me.

We have a 3 year old boy who will inherit the entire estate (I learned too late that unmarried partners don't exist when there is no will). Does that mean I will need to effectively buy the car from my little boy? I intend to keep the car for many years so could I delay this "sale" until a point in the future when the value is a lower? 

I checked the DVLA website and it's not possible to own a car in joint names which means ownership of a car can never automatically pass to your partner even when you bought the car together. There should be a way to register joint ownership.

getmore4less

DVLA hold the registered keeper not the ownership.

If the car was bought as a joint asset and used as a joint asset then it is probably a joint asset and passes to you,
1/2 the value needs to be included for IHT calculations as it does for other joint assets like property.

The other alternative view might be as the estate has to be held in trust and that may include the car which the child will benefit from through you as their chauffeur  you can act as trustee and registered keeper on their behalf.

p00hsticks

DistantDez said:

We have a 3 year old boy who will inherit the entire estate (I learned too late that unmarried partners don't exist when there is no will). Does that mean I will need to effectively buy the car from my little boy? I intend to keep the car for many years so could I delay this "sale" until a point in the future when the value is a lower?

I'm so sorry for your loss - unfortunately, another one of those posts that show the importance of making a will.

Yes, legally you would have to buy the car from your 3-year-old, at the value as at the time of your partners death. 

Realistically, I can't see your 3-year old demanding the payment from you any time soon - but the value will need to be taken into account when filling in th forms to apply for grant of administration.

Keep_pedalling

Frankly I would treat the car as as a joint asset along with other household items.

You need a car to transport both of you so indirectly they benefit from this asset.

Hopefully if you owned a home together you owned it as joint tenants, otherwise you will now own it jointly with a trust.

getmore4less

Keep_pedalling said:

Frankly I would treat the car as as a joint asset along with other household items.

You need a car to transport both of you so indirectly they benefit from this asset.

Hopefully if you owned a home together you owned it as joint tenants, otherwise you will now own it jointly with a trust.

depending on value that may be the best option as there is no transferable option for the nil rate bands and if some passes to the child it can use up some/all of the deceased's nil rates.

Marcon

DistantDez said:

Hi,

My partner passed away a few months ago and we own a car that was in his name. I transferred ownership of the car into my name not long after he passed away.

After doing the inheritance tax return I've realised that the car forms part of his estate and therefore as we weren't married and he didn't have a will, it doesn't really belong to me.

We have a 3 year old boy who will inherit the entire estate (I learned too late that unmarried partners don't exist when there is no will). Does that mean I will need to effectively buy the car from my little boy? I intend to keep the car for many years so could I delay this "sale" until a point in the future when the value is a lower? 

I checked the DVLA website and it's not possible to own a car in joint names which means ownership of a car can never automatically pass to your partner even when you bought the car together. There should be a way to register joint ownership.

Other answers all seem to be overlooking an important point....unmarried partners can make a claim against their late partner’s estate if a will (or the intestacy rules, if there is no will) fails to make adequate financial provision for them.

You need to have been been cohabiting for at least 2 years prior to your partner’s death, which sounds highly likely given you have a 3 year old.

p00hsticks

Marcon said:

DistantDez said:

Hi,

My partner passed away a few months ago and we own a car that was in his name. I transferred ownership of the car into my name not long after he passed away.

After doing the inheritance tax return I've realised that the car forms part of his estate and therefore as we weren't married and he didn't have a will, it doesn't really belong to me.

We have a 3 year old boy who will inherit the entire estate (I learned too late that unmarried partners don't exist when there is no will). Does that mean I will need to effectively buy the car from my little boy? I intend to keep the car for many years so could I delay this "sale" until a point in the future when the value is a lower? 

I checked the DVLA website and it's not possible to own a car in joint names which means ownership of a car can never automatically pass to your partner even when you bought the car together. There should be a way to register joint ownership.

Other answers all seem to be overlooking an important point....unmarried partners can make a claim against their late partner’s estate if a will (or the intestacy rules, if there is no will) fails to make adequate financial provision for them.

You need to have been been cohabiting for at least 2 years prior to your partner’s death, which sounds highly likely given you have a 3 year old.

That's an interesting point, but I wonder how you would actually go about it in practice in a case like this, where the deceased has died intestate and I imagine the partner will be the one applying for letters of administration (if required ?). Would it need to go to some sort of court case, and if so would the costs be funded by the estate ? Presumably the 3-year old beneficiary would need to be represented in some way, and the OP can't both represent her childs interests and claim against the estate for herself.

Flugelhorn

p00hsticks said:

Marcon said:

DistantDez said:

Hi,

My partner passed away a few months ago and we own a car that was in his name. I transferred ownership of the car into my name not long after he passed away.

After doing the inheritance tax return I've realised that the car forms part of his estate and therefore as we weren't married and he didn't have a will, it doesn't really belong to me.

We have a 3 year old boy who will inherit the entire estate (I learned too late that unmarried partners don't exist when there is no will). Does that mean I will need to effectively buy the car from my little boy? I intend to keep the car for many years so could I delay this "sale" until a point in the future when the value is a lower? 

I checked the DVLA website and it's not possible to own a car in joint names which means ownership of a car can never automatically pass to your partner even when you bought the car together. There should be a way to register joint ownership.

Other answers all seem to be overlooking an important point....unmarried partners can make a claim against their late partner’s estate if a will (or the intestacy rules, if there is no will) fails to make adequate financial provision for them.

You need to have been been cohabiting for at least 2 years prior to your partner’s death, which sounds highly likely given you have a 3 year old.

That's an interesting point, but I wonder how you would actually go about it in practice in a case like this, where the deceased has died intestate and I imagine the partner will be the one applying for letters of administration (if required ?). Would it need to go to some sort of court case, and if so would the costs be funded by the estate ? Presumably the 3-year old beneficiary would need to be represented in some way, and the OP can't both represent her childs interests and claim against the estate for herself.

Could be complicated but must have happened before - can imagine most times the property is jointly owned and the rest doesn't add up to much - when it would really become a problem is when the toddler inherits a huge estate and mum doesn't actually have anything 

emmajones1976

Practically speaking, a three year old isnt going to know the car is his, is he?

Nudge nudge wink wink.

Keep_pedalling

emmajones1976 said:

Practically speaking, a three year old isnt going to know the car is his, is he?

Nudge nudge wink wink.

There is no nudge nudge wink wink involved. The OP said that we owned a car which means it was a joint asset. Only one of them could be declared as the registered keeper on the car’s documentation but being a registered keeper and owner are two separate things.

Marcon

p00hsticks said:

Marcon said:

DistantDez said:

Hi,

My partner passed away a few months ago and we own a car that was in his name. I transferred ownership of the car into my name not long after he passed away.

After doing the inheritance tax return I've realised that the car forms part of his estate and therefore as we weren't married and he didn't have a will, it doesn't really belong to me.

We have a 3 year old boy who will inherit the entire estate (I learned too late that unmarried partners don't exist when there is no will). Does that mean I will need to effectively buy the car from my little boy? I intend to keep the car for many years so could I delay this "sale" until a point in the future when the value is a lower? 

I checked the DVLA website and it's not possible to own a car in joint names which means ownership of a car can never automatically pass to your partner even when you bought the car together. There should be a way to register joint ownership.

Other answers all seem to be overlooking an important point....unmarried partners can make a claim against their late partner’s estate if a will (or the intestacy rules, if there is no will) fails to make adequate financial provision for them.

You need to have been been cohabiting for at least 2 years prior to your partner’s death, which sounds highly likely given you have a 3 year old.

That's an interesting point, but I wonder how you would actually go about it in practice in a case like this, where the deceased has died intestate and I imagine the partner will be the one applying for letters of administration (if required ?). Would it need to go to some sort of court case, and if so would the costs be funded by the estate ? Presumably the 3-year old beneficiary would need to be represented in some way, and the OP can't both represent her childs interests and claim against the estate for herself.

They weren't married, so they can't. See https://www.gov.uk/applying-for-probate/if-theres-not-a-will for more information about who can apply for letters of administration.