• Executor's Responsibilities: The Executor is responsible for the proper administration of the deceased estate, which includes identifying, collecting, valuing, and distributing assets. This responsibility extends to ensuring that all assets, including vehicles, are accurately valued for the estate’s accounting, tax obligations, and distribution to beneficiaries.

• Duty of Care: The Executor must act in the best interests of the estate and beneficiaries, so the car must be valued at its market value or saleable value as of the date of the deceased’s death. This value can then be used to calculate the estate’s total worth and determine the share each beneficiary is entitled to.

• Determining Current Market Value: If a vehicle is part of an estate or a legal dispute (such as divorce, legal claim or business) a market value of the vehicle needs to be determined. The value should take into account the condition, mileage, make, model, age, and any factors that could affect its current worth. It should also take into account the current value, not a future value.

• Estate Distribution: This value is needed for determining the distribution of the estate to the beneficiaries, as the total value of the assets must be determined before dividing up the estate.

• Tax and Capital Gains Tax (CGT): In some cases, a car may be sold as part of the estate’s administration, and the proceeds may be subject to capital gains tax (CGT) depending on its status as an asset of the deceased (e.g., if it’s an investment vehicle or part of a business). Having a proper valuation helps ensure that the correct amount of tax is paid, if applicable.

In common law jurisdictions, probate is the judicial process whereby a will is "proved" in a court of law and accepted as a valid public document that is the true last testament of the deceased; or whereby, in the absence of a legal will, the estate is settled according to the laws of intestacy that apply in the jurisdiction where the deceased resided at the time of their death.

• Written Report: The valuation should be documented in writing. The report should include:

  • The date of death ( if applicable as of which the valuation is being made).

  • A detailed description of the vehicle (make, model, year, mileage, condition, etc.).

  • The valuation figure (market value or sale price).

  • Any supporting evidence (comparable sales, auction results, industry guides, etc.).

• Supporting Documentation: In some cases, the valuation might be required to be submitted to the NSW Probate Registry or other authorities involved in the estate administration. Keep copies of any reports, valuations, or supporting documents for the Executor’s records and for the beneficiaries.

• If the car is sold as part of the estate's administration (e.g., to help cover debts or to divide the estate’s assets), the sale should ideally be carried out at market value to avoid disputes. If a professional valuer is engaged, they can assist in pricing and selling the car appropriately.

• The proceeds from the sale of the car must be properly recorded in the estate accounts and will be part of the total value of the estate being distributed to beneficiaries.

• Disputes Over Value: If beneficiaries or other parties disagree with the valuation of the car, the Executor should have supporting evidence (such as a professional valuation) to justify the figure. If necessary, the Executor may have to get a second opinion or be prepared to explain the valuation method.

• Legal Requirements: If the valuation is being contested in a legal context (e.g., in court), the Executor may be asked to provide additional evidence or testimony regarding how the valuation was conducted. It is essential that the valuation be objective and based on sound reasoning.

• Insurance Assessments: If the vehicle is insured and the insurance payout is part of the estate, the valuation should reflect the agreed value or the insurance value that was in place at the time of the deceased’s death.

• Compensation Claims: If the vehicle is part of a compensation claim (for example, if the deceased was in a car accident before passing), the valuation may be used to calculate the amount of compensation the estate is entitled to.

• Capital Gains Tax (CGT): If the car is sold as part of the estate, and it is determined that the sale results in a capital gain, the estate might need to pay CGT based on the difference between the market value at the date of death and the sale price. A valuation is critical for determining the right CGT amount.

• GST: In certain cases (for example, if the car is a business asset), there may be GST (Goods and Services Tax) considerations as well. It's important to consult with a tax professional to understand these implications.

• It’s essential for the Executor to ensure that all valuations are conducted fairly, without bias, and that all beneficiaries are treated equitably. Transparency is key, especially if a car is of significant value and could impact the final distribution.

Be aware that new laws related to family law property matters came into effect on 10 June 2025. These changes will influence how courts determine automotive and property settlements, including considerations of the economic impact of family violence and factors relating to these assets are considered. It's advisable to stay informed about these developments, as they may affect your proceedings.