MyVans Your Vehicle Solution Dealing with the death of a loved one can be emotionally overwhelming. However, it is important to handle the person’s assets properly. If the deceased owned a car, you need to transfer the ownership of the vehicle to the rightful heir. In this article, we will guide you on how to transfer ownership of a car after death.
Step 1: Check the Will
Before proceeding with any legal process, you need to check if the deceased had a will. The will specifies the distribution of the assets, including the car. If the person did not leave a will, it is best to consult with a probate attorney to determine the legal heirs and the next course of action.
Step 2: Obtain the Death Certificate
The next step is to obtain a certified copy of the death certificate. This document is required by the Department of Motor Vehicles (DMV) to transfer ownership of the car. You can obtain a death certificate from the funeral director or the county clerk’s office.
Step 3: Determine the Value of the Car
It is essential to determine the value of the vehicle to calculate the estate tax. You can use the Kelley Blue Book value or get an appraisal from a licensed appraiser. The estate tax applies if the net value of the assets exceeds the exclusion limit set by the Internal Revenue Service (IRS).
Step 4: Notify the DMV
You need to notify the DMV of the owner’s death and start the transfer process. You can do this by completing the transfer application form and attaching the death certificate, the will (if applicable), and the car title. The DMV will issue a new title in the name of the heir.
Step 5: Pay the Transfer Fee
The DMV charges a transfer fee to process the ownership transfer. The fee varies depending on the state, but it is usually a nominal amount. You need to pay the fee to complete the transfer process.
Step 6: Update the Car Insurance
After the ownership transfer, you need to update the car insurance policy. You can add the new owner to the policy or remove the deceased from the policy. It is advisable to consult with the insurance provider to determine the best course of action.
Step 7: Notify the IRS
If the estate value exceeds the exclusion limit set by the IRS, you need to file an estate tax return. You also need to notify the IRS of the ownership transfer and pay any applicable taxes. It is best to consult with a tax professional to ensure compliance with the tax laws.
Step 8: Store the Documents
After completing the ownership transfer, you need to store the documents in a safe place. The documents include the new car title, the transfer application form, the death certificate, and the will (if applicable). These documents are essential in case of any future legal disputes or claims.
Step 9: Seek Legal Advice
If you encounter any legal issues during the ownership transfer, it is best to seek legal advice. A probate attorney can help you navigate the legal process and ensure compliance with the state laws.
Step 10: Be Patient
The ownership transfer process can take several weeks or even months to complete. It is essential to be patient and follow up with the DMV and other authorities regularly. You can also seek assistance from a licensed DMV service provider to expedite the process.
