04:49
Faizan
When a spouse or another loved one dies, it usually falls to the deceased's family to dispose of his property. If the deceased owned a vehicle in his own name at the time of his death, the vehicle must be transferred into someone else's ownership, before the vehicle can be sold. Alternatively, the court-appointed representative for the deceased's probate case can assume control of the vehicle to sell it to someone else. However, the specific requirements of vehicle transfers can vary among states.
Rights of Survivorship
Depending on how the names are listed on the vehicle's title, two owners can own the car as joint tenants with rights of survivorship, as tenants by the entirety or as tenants in common. Owners who hold title as joint tenants with rights of survivorship automatically have rights to the entire vehicle when one co-owner dies. In some states, married couples own property as tenants by the entirety, which also carries rights of survivorship, giving the surviving spouse total ownership rights when the other spouse dies. Vehicles owned by joint tenants with rights of survivorship or, if married, as tenants by the entirety, can be transferred to the surviving co-owner, often without changing the license plates or completing much paperwork.
With a tenancy in common, a co-owner does not automatically have rights to inherit the vehicle from the deceased co-owner. Instead, the deceased co-owner's share passes to his heirs or beneficiaries. Thus, if the deceased owned the vehicle with someone else but without rights of survivorship, no one receives the title automatically. Instead, the person who inherits the deceased's share of the car can join with the other co-owner to sell it, after the title is transferred to include the inheriting beneficiary's name.
Transferring Documents
State laws determine which documents the transferring party needs to provide before title can be transferred into his name. Generally, a surviving spouse must provide the original title, a transfer form and a copy of the death certificates. States may also charge a fee for the title transfer. Wisconsin, for example, allows a surviving spouse to transfer up to five vehicles into his name when his spouse dies, requiring a certificate of title, two forms and a transfer fee. Pennsylvania, for example, requires a copy of the deceased's will, if any, and proof of death with many transfers.
Going Through Probate
If the deceased's spouse did not survive him and he did not own title to the vehicle with someone else as a joint tenants with rights of survivorship, the co-owner of the vehicle does not necessarily inherit it when the other co-owner dies. Instead, the deceased's share becomes part of his estate and is distributed like the estate's other assets. If the deceased's estate was large enough to require probate proceedings, his court-appointed estate representative can take control of the vehicle and sell it as the estate's representative. If not, the deceased's family can file a sworn statement or other paperwork with the state's department of motor vehicles to transfer it into a family member's name for later sale.
Selling the Vehicle
Once the vehicle is under the authority of someone other than the deceased, that new owner or manager can sell the vehicle to someone else. For example, Wisconsin allows the surviving spouse to sign to sell the vehicle with little paperwork by simply signing the title as the surviving spouse. If the vehicle is under the control of the estate's personal representative, he may have to sell it to pay estate debts, or he may simply need to transfer it to a beneficiary who is to be the new owner. Regardless of the reason for the transfer, the title must be signed in accordance with state requirements, which generally includes recording the odometer reading, and listing the selling date and selling price. The buyer or beneficiary must take care of transferring the title into his own name.
Rights of SurvivorshipDepending on how the names are listed on the vehicle's title, two owners can own the car as joint tenants with rights of survivorship, as tenants by the entirety or as tenants in common. Owners who hold title as joint tenants with rights of survivorship automatically have rights to the entire vehicle when one co-owner dies. In some states, married couples own property as tenants by the entirety, which also carries rights of survivorship, giving the surviving spouse total ownership rights when the other spouse dies. Vehicles owned by joint tenants with rights of survivorship or, if married, as tenants by the entirety, can be transferred to the surviving co-owner, often without changing the license plates or completing much paperwork.
With a tenancy in common, a co-owner does not automatically have rights to inherit the vehicle from the deceased co-owner. Instead, the deceased co-owner's share passes to his heirs or beneficiaries. Thus, if the deceased owned the vehicle with someone else but without rights of survivorship, no one receives the title automatically. Instead, the person who inherits the deceased's share of the car can join with the other co-owner to sell it, after the title is transferred to include the inheriting beneficiary's name.
Transferring Documents
State laws determine which documents the transferring party needs to provide before title can be transferred into his name. Generally, a surviving spouse must provide the original title, a transfer form and a copy of the death certificates. States may also charge a fee for the title transfer. Wisconsin, for example, allows a surviving spouse to transfer up to five vehicles into his name when his spouse dies, requiring a certificate of title, two forms and a transfer fee. Pennsylvania, for example, requires a copy of the deceased's will, if any, and proof of death with many transfers.
Going Through Probate
If the deceased's spouse did not survive him and he did not own title to the vehicle with someone else as a joint tenants with rights of survivorship, the co-owner of the vehicle does not necessarily inherit it when the other co-owner dies. Instead, the deceased's share becomes part of his estate and is distributed like the estate's other assets. If the deceased's estate was large enough to require probate proceedings, his court-appointed estate representative can take control of the vehicle and sell it as the estate's representative. If not, the deceased's family can file a sworn statement or other paperwork with the state's department of motor vehicles to transfer it into a family member's name for later sale.
Selling the Vehicle
Once the vehicle is under the authority of someone other than the deceased, that new owner or manager can sell the vehicle to someone else. For example, Wisconsin allows the surviving spouse to sign to sell the vehicle with little paperwork by simply signing the title as the surviving spouse. If the vehicle is under the control of the estate's personal representative, he may have to sell it to pay estate debts, or he may simply need to transfer it to a beneficiary who is to be the new owner. Regardless of the reason for the transfer, the title must be signed in accordance with state requirements, which generally includes recording the odometer reading, and listing the selling date and selling price. The buyer or beneficiary must take care of transferring the title into his own name.
Posted in: Estate Laws
