A client recently called me from her late father’s home in Brooklyn. She was the executor of his will, and while sorting through his belongings, she found the keys to his prized 1968 Ford Mustang in a desk drawer. The car was in the garage, covered by a tarp. Her first question was a practical one: “Can I just sell it and split the money between my brother and me?”
It’s a common question, and the answer is almost always no. As an executor in New York, you are more than just a manager of assets—you are a fiduciary. This role comes with specific legal duties, and selling a vehicle involves a process that protects the estate, its beneficiaries, and you.
First, Confirm Your Authority
Before you can list the car for sale or get an appraisal, you must have the legal authority to act on behalf of the estate. The car does not belong to you; it belongs to the estate. Your authority comes from a specific document issued by the Surrogate’s Court: Letters Testamentary.
Obtaining these Letters involves submitting the original will for probate, along with a petition and the death certificate. The court reviews the documents, validates the will, and formally appoints you as the executor. Only with these Letters in hand can you legally sign documents—like a vehicle title—on the estate’s behalf. Attempting to sell the car before this step can void the sale and create personal liability.
This isn’t just bureaucracy. It is the court’s method for preventing fraud and family disputes by confirming who has the legal right to act.
The Executor’s Fiduciary Duty
Once you have your Letters Testamentary, your primary responsibility is to act in the best interests of the estate and its beneficiaries. This is your fiduciary duty. When selling a car, this duty has two main components: securing fair market value and maintaining a clear record.
1. Determining Fair Market Value: You cannot sell the car to a friend for a steep discount or sell it to yourself for a dollar. Doing so would be a breach of your duty. You must make a good-faith effort to get a reasonable price. For a standard used car, this might mean looking up its value in the Kelley Blue Book. For a classic vehicle—like that Mustang in Brooklyn—it means getting a formal appraisal from a qualified professional. This appraisal serves as evidence that you acted prudently, protecting you if a beneficiary later questions the sale price.
2. Documenting the Transaction: Every step of the sale must be transparent. Keep records of the appraisal, any advertisements placed, offers received, and the final bill of sale. The money from the sale does not go into your personal bank account. It must be deposited into a separate estate account. These funds are used to pay the decedent’s debts and administrative expenses before being distributed to the beneficiaries according to the will.
The Mechanics of the Title Transfer
With legal authority established and a buyer lined up, the final step is the paperwork. In New York, the process is managed by the Department of Motor Vehicles (DMV).
To transfer the title, you will provide the buyer with several documents:
- The original Certificate of Title. On the back, you will sign the decedent’s name, then write your own name and title next to it—for example, “John Smith, Executor.”
- A copy of the Letters Testamentary. This is the buyer’s proof that you have the legal authority to sign for the estate.
- A copy of the death certificate.
The buyer then takes these documents to the DMV to register the car in their name. Your power to do this is not arbitrary; it is granted by law. New York’s Estates, Powers and Trusts Law (EPTL) § 11-1.1 grants a fiduciary the power to sell estate property—real or personal—as part of the administration process. This statute is the foundation of your authority to turn that car into liquid assets for the estate.
A Matter of Stewardship
Selling a car is often one of the first tangible tasks an executor undertakes. It can feel like a simple transaction, but it’s a critical part of a much larger responsibility. You are not just selling an object; you are converting a piece of a person’s legacy into assets that will fulfill their final wishes.
Handling it correctly—with the proper authority, a commitment to fairness, and meticulous records—sets the tone for the entire estate administration. It demonstrates a deliberate and prudent approach to your role as a steward of the estate.
If you have recently been named an executor and are unsure of your first steps, our firm can schedule a consultation to review the will and help you create a checklist for the first 90 days of your duties.
