What Happens to a Car When Someone Dies

A car is often one of the first practical things families have to deal with after a loss. It is sitting in the driveway or a parking lot and nobody is quite sure what to do with it or who has the legal right to do anything at all.

Here is how it works.

It Depends on How the Car Was Titled

The most important factor in determining what happens to a vehicle is how it was titled. Check the title document which should be in the glove compartment or with the deceased person's important papers.

If the car was titled jointly with a surviving spouse or with rights of survivorship the surviving owner typically just needs to present the death certificate to the DMV and have the title transferred into their name alone. This process is relatively straightforward and does not require probate.

If the car was titled solely in the deceased person's name it becomes part of the estate and goes through probate. The executor has the authority to transfer or sell the vehicle as part of settling the estate.

What About Insurance

Contact the auto insurance company as soon as possible. Coverage on a vehicle owned by a deceased person can become complicated quickly. If family members are driving the car in the meantime make sure it is still properly insured. Do not assume the existing policy continues without change.

How to Transfer the Title

If the vehicle is going to a beneficiary the executor can sign the title over to them once they have the legal authority to do so through the probate process. The beneficiary then takes the signed title to the DMV along with a copy of the death certificate and Letters Testamentary to complete the transfer.

Requirements vary by state so it is worth calling your local DMV to confirm exactly what documents they need before you make the trip.

How to Sell the Vehicle

If the vehicle is going to be sold the executor handles the sale and the proceeds go into the estate account to be distributed as part of the overall estate. The executor signs the title as seller in their capacity as executor of the estate.

Keep records of the sale price and all related paperwork. If the vehicle sells for significantly more or less than its fair market value it can create complications so a quick valuation through Kelley Blue Book or a similar resource beforehand is worth doing.

One Piece of a Larger Puzzle

A vehicle is just one of many assets that need to be accounted for, valued, and properly transferred during estate administration. Staying organized across all of it is what keeps the process moving and protects you as executor.

The Complete Estate Administration Suite at mynextstepsupport.com gives you the structure to track every asset from start to finish.

Visit mynextstepsupport.com to learn more.

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