Dealing with a loved one’s vehicle(s) after they pass away involves several steps, from transferring ownership to managing any outstanding payments or insurance. Here’s a guide to help you through the process:
1. Locate the Vehicle Title and Registration
- Find the title: The vehicle title is a key document for ownership transfer. Check your loved one’s personal files or safe deposit box to locate it.
- Find the registration: Ensure the vehicle’s registration is up to date. The registration document may also be needed for insurance and transfer purposes.
Tip: If you can’t find the title, you can request a replacement title from your local Department of Motor Vehicles (DMV) or equivalent agency.
2. Determine the Ownership Status
- Joint ownership: If you were a co-owner on the vehicle title (e.g., “joint tenants with right of survivorship”), the vehicle typically transfers directly to you without going through probate.
- Sole ownership: If your loved one was the sole owner of the vehicle, it will likely be handled as part of their estateand may go through probate.
3. Check for Loans or Leases
- Outstanding loans: If the vehicle is financed, you’ll need to contact the lender to notify them of your loved one’s passing and determine the next steps for continuing payments or settling the loan.
- Leased vehicles: If your loved one leased the vehicle, contact the leasing company to notify them of the death and inquire about early termination or transfer options. Some lease agreements may have clauses for handling death, including fees for ending the lease early.
4. Review Insurance Coverage
- Notify the insurance company: Inform your loved one’s auto insurance provider of their passing to update or cancel the policy. You may need to continue coverage if the vehicle will be driven, transferred, or sold.
- Maintain coverage: If the vehicle will remain in use or stored until it’s sold or transferred, maintain the insurance coverage to avoid liability in case of damage or an accident.
5. Pay Outstanding Parking Tickets or Fines
- Check for unpaid tickets: Ensure that any parking tickets, traffic fines, or toll fees are paid. Outstanding fines can cause issues when trying to transfer or sell the vehicle.
6. Decide What to Do with the Vehicle
You have a few options for handling the vehicle:
- Transfer ownership to a beneficiary: If the vehicle is mentioned in your loved one’s will or trust, or if you are the executor, you can transfer ownership to the designated beneficiary. The transfer process may require probate court approval if the vehicle is part of the estate.
- Sell the vehicle: If no one in the family wants the vehicle, or if it’s not financially practical to keep, you can sell it. Ensure that the title is transferred properly to the buyer.
- Donate the vehicle: Many organizations accept donated vehicles. This can be a good option if you want to give the car to a charity.
7. Transfer Ownership
To transfer ownership, follow these steps:
- Contact the DMV: Visit your local DMV or equivalent agency to transfer the title and registration. You’ll typically need:
- The vehicle’s title.
- A copy of the death certificate.
- Proof of your legal authority (e.g., executor or administrator of the estate).
- A Transfer on Death (TOD) affidavit, if applicable.
- Probate considerations: If the vehicle is part of the probate estate, ownership may need to be transferred by the executor with probate court approval. The court will issue the necessary documentation for the transfer.
8. Clear Liens (If Any)
- If there is a lien on the vehicle (e.g., due to a car loan), the lender may hold the title until the debt is paid off. Before transferring ownership or selling the vehicle, ensure that the lien is cleared. Work with the lender to settle any outstanding balance.
9. Update or Cancel the Registration
- Update registration: If you’re keeping the vehicle or transferring it to a beneficiary, the new owner must update the registration to their name.
- Cancel registration: If you’re selling or donating the vehicle, you may need to cancel the registration with the DMV to avoid being liable for future taxes or fees.
10. Sell the Vehicle (If Applicable)
- Gather necessary documents: Before selling the vehicle, you’ll need the title, a copy of the death certificate, and, if applicable, documentation from the probate court showing you have the legal right to sell it.
- Prepare the vehicle for sale: Clean the vehicle and make any minor repairs to increase its market value.
- Finalize the sale: When selling the vehicle, ensure the buyer’s information is filled out correctly on the title and that the bill of sale is complete. Provide the buyer with the necessary documentation for them to transfer the title.
11. Notify the DMV and Cancel Plates
- Notify the DMV: After selling, donating, or transferring the vehicle, notify the DMV so the vehicle is no longer associated with your loved one. This helps prevent any future liabilities, such as unpaid tickets or tolls.
- Return or destroy the license plates: Some states require that you return the vehicle’s license plates, while others may allow you to destroy or keep them as a memento.
12. Keep Records for the Estate
- Retain copies of any transactions involving the vehicle, such as the bill of sale, transfer paperwork, and any correspondence with lenders or the DMV. These records are important for settling the estate and for future tax purposes.
Recap of Key Steps:
- Locate the vehicle title and registration.
- Determine if there’s a loan or lease and contact the lender or leasing company.
- Notify the insurance provider and decide if coverage needs to be maintained.
- Pay any outstanding tickets or fines.
- Decide whether to transfer ownership, sell, or donate the vehicle.
- Transfer ownership through the DMV (or handle it through probate if required).
- Cancel or update the registration and notify the DMV.
- Keep detailed records for the estate and taxes.
By following these steps, you’ll be able to efficiently manage your loved one’s vehicle(s), ensuring that their affairs are properly handled, whether the vehicle is kept in the family, sold, or donated.