Inheriting a car involves transferring the vehicle title.
Most places in the United States are not designed with public transportation in mind.
As a result, many Americans require a personal vehicle to go to work or run errands.
Those who own a vehicle will need to decide to whom they would like to leave their car when they die.
Although inheriting a vehicle can be a significant blessing to your loved one, retitling the car can be stressful without proper estate planning and organization.
Transferring a vehicle title to an heir can require numerous steps.
How the decedent has titled the vehicle will impact the process of transferring the vehicle title.
The two main categories for ownership are for a vehicle to be jointly titled or titled to a single individual.
When a car is titled under the name of a single owner, probate will likely be required to transfer the vehicle ownership to the heir.
When a car is titled jointly and owned by multiple individuals, the transfer to survivor is often more streamlined.
If the vehicle title designates "Joint Tenancy with Right of Survivorship" (JTWROS), the asset will pass directly to the surviving owner.
When no joint owner is listed, or JTWROS is not specified, there will often be additional legal actions required to transfer the title,
Although beyond the scope of this blog post, in Kansas and Missouri, a Small Estate Affidavit may avoid or limit exposure to probate.
For this approach to be available, there can be no real estate subject to probate, and the total value of assets otherwise subject to probate cannot exceed $75,000 in Kansas and $40,000 in Missouri.
If a vehicle is distributed through a last will and testament, then the executor must oversee the title transfer to align with the wishes of the deceased.
When no last will exists, and the vehicle is not jointly titled, the intestacy laws of the state will determine who inherits the vehicle.
While intestacy laws vary by state, it is likely the vehicle will end up with a close relative, such as a spouse or child.
The best way to avoid uncertainty about who will end up with your vehicle is to have a comprehensive estate plan before you die.
When the vehicle title indicates sole ownership, the property must pass through probate.
Depending on the complexity and size of the estate, probate can take weeks or months.
If a valid last will, the probate process oversees distribution according to the wishes outlined in the document.
When there is no valid last will, probate oversees distribution according to the laws of the state.
Probate is initiated when the executor files the last will with the local probate court.
The court generally requires a death certificate, proof of the identity of the decedent, and other paperwork to be submitted by the executor administering the estate.
If probate is necessary to transfer the vehicle title, various forms will be required to move forward with the distribution of this asset.
The process will likely require the original vehicle title, a certified copy of the death certificate, a document proving authority as the executor of the estate, a valid photo ID for the new owner, and a completed title transfer application.
The application for title transfer is often available through the local Department of Motor Vehicles (DMV).
When you have the necessary documents, you must physically visit the local title agency or DMV to submit your paperwork.
If probate is required for the transfer, you must also have documentation verifying the estate has cleared probate.
In some cases, states may have fees for the title transfer or require emissions or safety inspections before a title can be transferred.
It is best to contact your local DMV for the requirements so you can efficiently retitle the car and understand applicable costs associated with the action.
Although a vehicle can be a wonderful gift, it also comes with tax implications.
Some states levy an inheritance tax for heirs to pay.
Fortunately, neither Kansas nor Missouri has an inheritance tax.
Other times, new vehicle owners are responsible for registration fees and property taxes.
Working with an experienced tax professional and an experienced estate planning attorney can help you better navigate tax laws and financial implications.
State agencies and laws can be complicated to navigate.
This has been a very general blog post because the transfer process varies from state to state.
My general recommendation for those in Kansas and Missouri?
Arrange for vehicles to "transfer on death" (TOD) to your chosen beneficiary.
It is simple and flexible.
If there is no remaining loan balance on your vehicle, you can accomplish this TOD designation directly through your local DMV office.
Only your death certificate (and the death certificate of any other joint owner) will be required to transfer title probate-free to your designated beneficiary.
This TOD designation does not limit your future sale of the vehicle or authority to create a new TOD designation with a new beneficiary.
Whether your largest asset is your vehicle or it is just one of many assets, our Overland Park estate planning law firm can help you create a plan to meet your goals and the legal requirements of Kansas or Missouri.
Reach out to schedule a consultation to begin protecting everyone you love and everything you have.
Your estate plan should cover the transfer of your vehicle, whether it is through joint titling or your last will.
If your vehicle is not jointly owned, it will pass through probate.
Your executor should be equipped with all necessary documentation to ensure a smooth transition at the local Department of Motor Vehicles.
Working with an experienced estate planning attorney is important to ensure your wishes are honored, and your plan addresses unique tax and transfer requirements.
This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: Capital One (2024) How to Transfer a Car Title When the Owner is Deceased
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