Valuation of a car for a notary by inheritance and determination of the market value of the vehicle

When entering into an inheritance, you must pay a state fee. Its size will depend on the degree of relationship, as well as on the value of the property included in the inheritance mass. With real estate, everything is simple - you can use the cadastral or inventory value and not carry out an assessment. When inheriting movable objects, including cars, you have to draw up a conclusion.

The SINEO company will conduct an examination for you and help determine the value of the vehicle for inheritance. Contact us for an initial consultation and we will answer all your questions.

Why carry out a car appraisal when entering into an inheritance?

A car valuation upon inheritance may be required:

• to pay state duty;
• when resolving disputes between heirs regarding the division of the inheritance;
• to determine the feasibility of entering into an inheritance (for example, if the testator has debts).

The appraisal will help determine the real, market value. It may differ from the one indicated by the testator or the one for which he acquired the object.

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What does the client get?

Based on the results of the examination, a report is generated, which indicates:

• characteristics of the research object (car) with the attachment of current photographs;
• the price corridor in which the vehicle falls;
• analysis of the regional automotive market;
• description of the assessment methods used by the expert.

There are two of them: comparative and costly. The comparative method involves studying the market for cars that are similar in parameters and performance properties, collecting data on their cost, and studying the average price. The peculiarity of this technique is that it does not require a preliminary inspection of the machine. This speeds up the procedure, which is why comparative assessment has become most widespread.

The costly method involves a preliminary inspection of the vehicle by an expert, identifying real wear of key components, and detecting aesthetic defects (traces of rust, scratches). The specialist takes photographs of all defects found and attaches them to the report. The next step is to calculate the costs required to eliminate signs of wear. The final cost is calculated taking into account this amount. Typically, this method is chosen only if an estimate of the market value of the car is needed for trial or when the vehicle was severely damaged in an accident.

The generated report is a completely legitimate document accepted for consideration by all legal institutions of Russia. You can order an independent examination right now by leaving a request on this website.

Who has the right to conduct an assessment?

The Tax Code of the Russian Federation, in Article 333.25, determines who has the right to conduct an assessment to determine the value of the inherited estate and the subsequent calculation of the state duty. Such organizations include:

• organizations and experts with appropriate licenses;
• justice institutions authorized to conduct such assessments.

The company “SINEO” has the appropriate powers, as it has a license to conduct expert activities.

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Timing of the procedure

The law does not regulate the timing of the assessment, since this action is not procedural. In practice, the time frame for drawing up an assessment report can range from 3 to 10 days , depending on the workload of the appraiser.

At the same time, there is no point in delaying the deadlines at all for the appraiser. The speed of work, as well as the level of price and quality, positively characterize the company's service.

Important! A number of appraisers offer a special service - an urgent assessment in 1 hour. You arrive with the car at the appraiser's office. He quickly carries out all the necessary actions, entering information into a standard report. All he can do is calculate the average cost of the car based on the data received. You have to pay extra for speed.

Types of assessment upon entering into inheritance

Assessment can be done in two ways:

1. Correspondence. In this case, there is no need to provide transport for personal inspection. It is necessary to provide documents for the object (PTS, STS), as well as a death certificate and an identity document of the applicant. The consequences of an accident, subtle defects, and repairs will not be taken into account. Typically, the closing value will be an estimate, but it can also be used to calculate the fee.
2. In person, that is, after a personal inspection of the car by an expert. The car can be delivered to an expert or he can go to the place where it is stored. This assessment is considered more accurate, since the specialist will be able to take into account any defects and improvements.

The choice of an appraiser must be taken seriously. We offer you our services because we are completely confident in our professionalism and the result of our work.

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All SINEO services are certified by GOST R ISO 9001-2015

CAR VALUATION FOR A NOTARY

We employ the best experts who will carry out a precise inspection of the car provided to us on time, with ease and precision, down to the smallest detail. A professional will identify any physical flaws and defects that may be the result of wear and tear on the main parts of the car. The first signs of malfunctions, problems in mechanics, electronics, as well as the future consequences of these breakdowns will not be hidden from him. We will also help you with collecting all the necessary documentation for the notarized valuation of your vehicle.

Ordering an examination: is it fast?

To evaluate a car for inheritance, it is not necessary to provide the car to an expert. It is possible to conduct an assessment without directly inspecting the car. You only need to provide the appraiser with the following papers (copies):

• vehicle passport;
• vehicle certificate;
• owner's death certificate;
• identification card of the customer of the assessment.

You will also most likely be asked for data on the car’s mileage and a diagnostic card (technical inspection document).

It deserves special attention that the assessment of the market value must be performed on the date of death of the owner, and not on the date of purchase of the car or the date of the assessment. The assessment should be issued in your name, as an heir.

Benefits of in-person assessment

Keep in mind that by presenting the car to the appraiser in person, you can reduce the estimated value of the car, since the vehicle may have any defects (scratches on the body, engine or chassis problems).

The appraiser needs to know why the assessment is being carried out and ask him to bring the assessment closer to the minimum limit. After all, appraisers have this opportunity through the skillful application of appraisal standards. This will allow you to save a little on state fees.

If the appraiser is registered in another region

In this case, it should be ensured that the appraiser’s report includes the location of the appraisal and that the appraisal is applicable to the region where the inheritance is opened.

Example: The appraiser is registered in Voronezh, but actually operates in Sakhalin (has a branch). Since the cost of a car on Sakhalin exceeds the average cost in the central regions of Russia, without indicating that the market value was determined in the Sakhalin region, one may get the impression that the valuation was carried out at Voronezh prices, that is, underestimated. This will be a reason to challenge the right of inheritance to the car.

Making a report

The report, in accordance with the assessment standard, must be properly formatted, including stitched, numbered and sealed by the appraiser. Also, all documents on the basis of which the assessment was carried out regarding the competence of the appraiser must be attached to it.

Assessment deadline

Most companies that offer their clients an independent assessment provide this service in the shortest possible time: from 1 to 3 business days , provided there are no additional complications (lack of documents, controversial issues).

Selecting an expert for assessment

The notary cannot oblige the selection of experts for the assessment. An independent assessment of the car is carried out by the organization chosen by the heir.

• When choosing, you should be guided not only by the cost of the service, but also by the authority of the experts.
• Other heirs may disagree and challenge the assessment results in court.

An appraiser, whether an individual entrepreneur or an organization, must be a member of a self-regulatory organization of appraisers. More details about the organizations that have the right to evaluate a car for inheritance are explained in the letter of the Ministry of Finance No. 03-05-06-03/97 dated December 21, 2007.

Who makes the appraisal and how to choose an appraiser

The materials devoted to evaluating a car for inheritance are full of incorrect recommendations. One of them: subject the vehicle to an examination to determine its value. This does not at all fit into the requirement of the Tax Code of the Russian Federation (clause 7, part 1, article 333.25), which establishes the following hierarchy of methods for determining the cost of a car:

• grade;
• examination by automotive experts;
• examination by employees of the Research Institute of Forensic Expertise.

Grade

A simple car assessment is carried out by representatives of appraisal organizations from the SRO (consolidated register of members of self-regulatory organizations of appraisers). Here, a specialist does not need special knowledge of a car mechanic to assess the condition of the car by components and make a general conclusion, because the process of establishing the value of a vehicle is carried out using the retrospective valuation method: the average market price of a similar vehicle on the day of the owner’s death is taken.

When choosing an appraiser, you need to make sure that the document issued by him will be legitimate. To do this you need to check:

• availability of a license to evaluate cars (there may be a license, but it will not indicate the vehicle);
• registration with SRO;
• the performer has no criminal record for crimes of an economic nature;
• location of the organization in the state register.

Expertise

An examination is appointed only if one of the heirs does not agree with the conclusions of the appraiser. The reasons may be different:

• The vehicle is equipped with non-standard expensive equipment (lighting, wheels, car radio, speakers, etc.);
• the car has not been used, and therefore the mileage is significantly lower than that of models of the same year of manufacture, and, therefore, its condition is much better than its analogues;
• a car after a serious accident, which reduces its market value;
• expensive tuning was carried out;
• The car is considered a rarity, and therefore its value is not market value, but exclusive.

The difference between an examination and a standard assessment is as follows:

• carried out by a person with special knowledge in the field of automotive engineering (as a rule, must have a higher education);
• Each vehicle component (body, engine, chassis) and general condition, as well as the complete set and equipment are assessed separately;
• carried out only in cases of inheritance by law;
• the cost of examination services is significantly higher.

An examination is carried out on the basis of Art. 103 of the Basic Law of the Russian Federation on notaries.

Forensic examination

If you disagree with the expert’s conclusions, you can have the car assessed at the Forensic Research Institute. The conclusions of the specialists of this organization are final and not subject to revision. They cannot even be challenged in court. Such pleasure is even more expensive than the examination of organizations from SRO.

Cost analysis algorithm

An independent assessment of the value of a car or other vehicle begins with delivery to our company (expert center) with accompanying documents, in which the appraisers will conduct research to determine the current market value.

• The assessment is carried out based on the technical condition of the car: paintwork, functionality of units and components, presence of damage (accidents, rust, etc.);

• Conclusion and issuance of assessment documentation.

It must be taken into account that the decision of a notary or in cases of disputes between heirs, the car does not have to be provided to experts. The average price at the moment in the PTS market is simply indicated. Damages that are documented are taken into account. If there is no data on repairs, maintenance, or damage, but is in fact available, the information without inspecting the car is not taken into account.

No money, what to do?

It happens that the amount of the fee is unaffordable for the heir. What to do in this case? The law provides the possibility of obtaining a deferment. The Tax Code, in addition to defining the list of cases, also additionally indicates that during the installment plan, interest is not accrued on the duty amount (clause 2 of Article 333.41). The maximum period for such installment or deferment is three years. Provided if:

• You are the victim of a natural disaster;
• Budget money has not been paid to you on time;
• you risk becoming bankrupt if you pay the entire amount at once;
• your financial situation does not allow you to immediately pay the fee.

The procedure for registering a car as an inheritance

When entering into inheritance rights in relation to a car, heirs must go through the following steps:

1. Contact a notary with an application and a set of documentation.
2. Conduct a vehicle assessment procedure.
3. Provide the notary with an official report on the assessment of the market value of the car.
4. Pay the state fee calculated based on the notary's assessment.
5. Obtain a certificate of inheritance , which serves as the basis for re-registering the car as your property.
6. Contact the traffic police to register the car in your name.

The rules by which a car is inherited (according to the law or by will) may change the circle of heirs, but the procedure itself will remain generally unchanged.

In 2006, the inheritance tax was abolished. But in essence, it was replaced by a state duty for issuing a certificate of inheritance. Its determination is based on the estimated value of a car or other property.

That is why, in addition to a certain list of documents that confirm the rights to inherit a car, it is necessary to provide an official conclusion on the assessment of the market value of the car.

All heirs must pay the state duty, regardless of their relationship to the testator, so everyone must take care of ordering a market valuation. Only certain categories of citizens are recognized as beneficiaries and are exempt from state duties on inheritance. Among them:

• incapacitated persons;
• minors;
• Heroes of the USSR, Russian Federation, WWII veterans.

These categories of citizens, upon presentation of appropriate documentation, can avoid the assessment procedure.

You need to go through the car evaluation procedure regardless of how the car was received by the testator (for example, it could have been given to him as a gift under preferential government programs).

When determining the state duty, the following formula is applied depending on the category of heirs:

• 0.3% of the estimated value of the car for the circle of immediate relatives , but not more than 100 thousand rubles;
• 0.6% - for other categories , but within 1 million rubles.

Calculation example. The son inherited his father’s car with a market value of 300 thousand rubles. He is the closest relative of the testator and can count on a benefit when calculating state duty in the form of a reduced rate. The state duty will be 300,000 * 0.3 = 900 rubles. This is the amount that must be paid before entering into inheritance rights.

Without going through the car assessment procedure, the notary has the right to refuse to issue a certificate of inheritance. But if the heir is experiencing financial difficulties, and the amount of the state duty is too large, then he can apply to the court for an installment plan to pay it.

Based on the results of the consideration of the case, the court may grant an installment plan for payment of the state duty for a period of up to 3 years. During the specified period, interest will not be accrued on the amount of state duty.

When receiving a certificate of the right to inheritance, the heir must present to the notary a paid receipt for the state fee. If this is not done, the notary may issue an official refusal to issue a certificate due to the incompleteness of the documents. It will be almost impossible to challenge such a notarial decision, since civil law will be on the side of the notary.

Heirs should not delay too much in completing the car valuation procedure, since if the certificate of inheritance is not issued on time, the car may be recognized as escheatable property and it will go to the state.

Estimating the market value of a car is important for the following reason. A car belongs to the category of indivisible property. This means that it cannot be physically divided without losing its consumer functions. That is, in fact, the car can be divided into spare parts, but then it will not be able to transport passengers and will lose its main purpose.

Therefore, if there are several heirs, the car usually goes to one of the applicants, while others can count on monetary compensation for their shares based on the market value of the car from its new owner.

Car assessment report and expert report after the assessment

After the work has been completed, an expert from our company draws up a report. It includes the following information:

1. Type of vehicle valuation used. It can be costly, profitable, or comparative.
2. The average market value of the car is indicated.
3. All information about the mileage, year of manufacture of the car and its condition.
4. All documents about installed additional equipment.
5. The expert also encloses the car valuation report for the notary with the percentage of loss of marketable value of the vehicle, as well as the demand for this brand of car.

Photos of the vehicle must be attached to the report. The document is drawn up in printed form and certified with a wet seal, as well as the signature of the expert who conducted the assessment. When drawing up the report, the specialist must strictly adhere to legislative acts, which must also be indicated in the report.

After the assessment, the entire package of documents is collected into a general report, copies are taken from it, a copy of the company’s certificate that carried out the independent examination, a receipt for payment for services, as well as all those documents that were transferred to the independent expert for the examination are attached. The complete package of documents is transferred to the notary. A standard report package can contain from 10 to 20 pages.

The report is valid for 6 months after the date of its preparation. After this time, the client will have to contact the specialist again for the service and pay again.

Registration of purchase and sale of a car from a notary

Helpful information

If you decide to sell your favorite car, then you are faced with a choice: look for a buyer yourself or contact organizations specializing in this service. The easiest way is to turn to professionals, but if you are determined to carry out the entire procedure for buying and selling a car yourself, then you cannot avoid the procedure for drawing up a purchase and sale agreement.

There are several options here. The current legislation does not force you to notarize the transaction, and, most often, a simple agreement concluded in writing is sufficient. But if desired, the parties can conclude this agreement in a notary office.

When choosing this option, you should remember that the notary charges a state fee of 1.5% of the contract amount. You will also have to pay for the services of a notary to draw up the agreement.

To prepare a Car Valuation Report, you will have to contact an independent expert who will prepare a report indicating the market value of your car.

The notary will certify the transaction if you provide:

• passport or a document replacing it,
• power of attorney, if the transaction is concluded in the interests of a third party,
• vehicle passport,
• registration certificate,
• report on the assessment of the market value of the car.

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When is an assessment required?

In general, a car assessment is carried out for different purposes:

• during a divorce, during the division of property;
• when applying for a consumer loan, when a car is provided as collateral;
• to reimburse the owner of the insurance;
• receiving an inheritance.

In this case, according to the last point, the assessment of a vehicle in case of inheritance by will is carried out to determine the amount of state duty on the inherited property, and in case of inheritance by law, also to calculate the share of each heir in monetary terms, since the machine cannot be divided into parts. It will go to one person, who will pay the other heirs their shares in real money or with their share of the inheritance in other objects of the inherited mass.

When is the value of a car for sale assessed?

In most cases, this service is ordered by legal entities so that they have a valid document that allows them to put the car on their balance sheet. Acquisition and operating costs are included in expenses that reduce income taxes. To avoid disagreements with the tax authorities, it is better to trust professional appraisers who have the right to issue an expert opinion.

The citizen’s desire to buy a car at a fair price is justified. The buyer will pay for the services of an expert and will receive confidence that hidden defects will be detected. The appraiser has the right to examine all documents relating to the car and to be present at the service station during the inspection. Owners are often also interested in an independent examination, so as not to inflate the cost, scare off the buyer, or lose their money by setting a low price.

Cost of assessment services

Another controversial point in covering the assessment procedure is the cost of the service. According to the authors, an assessment without visiting a vehicle costs several times more, which contradicts logic.

Let's try to clarify using the example of St. Petersburg and show how much the procedure for assessing a vehicle for inheritance costs. So, when evaluating a car without inspection, you will have to pay from 900 to 1,500 rubles. depending on the year of manufacture:

• before 1970 – 1500 rubles;
• 1970-1999 – 900 rubles;
• 2000-2009 – 1200 rubles;
• from 2010 – 1500 rub.

Please note: average prices are shown. They may vary slightly across organizations.

With an on-site inspection, the price list starts at 2,500 rubles, and the average price is 5,000 rubles.

Service within the framework of legal proceedings after the valuation of a car for inheritance in Moscow

Who orders the assessment?

In accordance with the Civil Code of the Russian Federation (Article 1172, paragraph 1), the initiator of the assessment of a vehicle can be:

• one of the heirs;
• a person representing the interests of the heir by proxy;
• guardian if the heir is fully or partially (a minor in an orphanage) incompetent;
• guardian – one of the parents of the adoptive family (no adoption);
• executor (the person appointed by the will to be the executor of the deceased's last will).

In addition, the valuation of a car for inheritance can be carried out by decision of a notary during the inventory of property.

The evaluation results are not affected by who launched the procedure.

Video on the topic

Useful information on this topic is contained in the following video:

Anyone can inherit a car if such was the will of the testator, and this will was expressed documented by a notary. The legislation establishes a special procedure for the sale of such property, which greatly facilitates the handling of such inheritance. Read about how to sell such a car in our materials.

What is needed to conduct an independent vehicle assessment?

To conduct an independent assessment of a car for a notary, the car owner will need:

• submit an application to the expert center in our;
• conclude an agreement to inspect the car;
• provide a passport of the person claiming the inheritance;
• present the car and technical documentation for it (if available);
• death certificate of the car owner;
• will/probate (optional).

The timing of assessment actions is regulated by law.